CHAPTER 3-QUIZ 1

1.3. Give at least 3 functions of the Secondary Market.

Ans.-Maintains Active Trading, Fixation of Prices , Ensure Safe and Fair Dealing , Aids in
Financing the Industry, Dissemination of Information, Performance Induced, Self-regulating
Organization

4. It has the appellate and supervisory powers over the SEBI.

Ans.-Ministry of Finance

5. Give 1 interim function of the SEBI

Ans.- To collect information and advice the Government on matters relating to Stock and Capital
Markets

-Licensing and regulation of merchant banks, mutual funds etc

6. It is a wide term encompassing various measures designed to protect the investors from
malpractices of companies, brokers, merchant bankers, issue managers, Registrars of new
issue, etc. “Investors Beware” should be the watchword of all programs for mobilization
of savings for investments.

Ans.- Investor Protection

7. Investors in stock and capital markets need a word of caution. Firstly, these investments
are more risky, returns are uncertain and share values are subject to wide fluctuations.

Ans.- Investors Beware

8. It is a process where securities held by you in physical form are cancelled and credited to
your DP account in the form of electronic balances.

Ans.- Dematerialization or Demat

9. Any body or individuals whether incorporated or not, constituted for the purpose of
controlling the business of buying, selling or dealing in securities.

Ans.- Stock Exchanges

10. Besides holding securities, it provides various services related to transactions in securities.

Ans.- Depository