Capital Market

CS Executive

Q.1 State, with reasons in brief, whether the following statements are correct or incorrect:
(2 marks each)
(i) Capital market is wider than securities market.
(ii) Mandatory client code facilitates market surveillance.

Q.2 Write short notes on the following ( 4 marks each)

(i) Basket trading system

(ii) Securities Market and Economic Growth

Q.3 Write distinguish between:- ( 4 marks each)

(i) Call Option and Put Option
(ii) Primary Market and Secondary Market.
(iii) Calculate value of 'rights' from the following information

(i) Number of rights shares offered 2,500

(ii) Number of shares held 1,000
(iii) Ex-rights price 18
(iv) Rights offer price 15
(v) Face value of a share 10

Q.4 Discuss the factors generally considered by credit rating agencies for the rating of
manufacturing companies. (5 Marks)

Q.5 Explain the Settlement Mechanism under Rolling Settlement System? (5 marks)

Q.6 Answer the following: (3 Marks each)

1. “SEBI expects the investors to make investments with their eyes and ears open.”
Comment
2. Tracking Stock