Primary market and Secondary market, Investors,Issuers,Investories

The video tutorial explains the capital market, divided into primary and secondary markets. The primary market involves companies issuing securities to raise capital, using methods like IPOs, rights issues, and private placements. The secondary market allows trading of these securities, providing liquidity and price discovery. The video also covers the roles of market players like issuers, investors, and intermediaries such as stockbrokers and merchant banks. It emphasizes the importance of research, risk management, and diversification in mitigating market risks.

What is the primary purpose of the capital market?

• To facilitate the buying and selling of goods

• To provide loans to individuals

• To offer insurance services

• To raise funds for companies through shares and debentures

Which method involves a company offering shares to the public for the first time?

• Private Placement

• Initial Public Offering (IPO)

• Bonus Issue

• Rights Issue

What document provides detailed information about a company's securities offering?

• Prospectus

• Annual Report

• Share Certificate

• Investment Guide

What is a key function of the secondary market?

• Granting business loans

• Offering insurance policies

• Issuing new shares

• Providing liquidity for securities

Which factor can cause volatility in the secondary market?

• Stable economic conditions

• Consistent company performance

• High investor confidence

• Political instability

Who are considered the 'middlemen' in the capital market?

• Issuers

• Investors

• Intermediaries

• Regulators

Which type of investor typically manages large sums of money on behalf of others?

• Individual Investors

• Corporate Investors

• Foreign Investors

• Institutional Investors