After doing a course in online trading, Bharat started an online portal for stock trading under the name "Bharat Trading". He met his school friend Bhavesh after a long time in a bank where Bhavesh had come to open a Dem
CS Professional · Capital Commodity and Money Market · PYQS · December 2020
After doing a course in online trading, Bharat started an online portal for stock trading under the name "Bharat Trading". He met his school friend Bhavesh after a long time in a bank where Bhavesh had come to open a Demat account. Bharat urged Bhavesh to invest in the forthcoming IPOs of blue chip companies whereas Bhavesh was inclined to buy existing securities of the other companies to build his investment portfolio. In the context of the above case: Identify the two different types of capital market being referred to in the above paragraph.
Answer & Explanation:
Answer 3(a) Types of Capital Market: The two different types of capital market being referred to are as under: Primary Market: "Bharat urged Bhavesh to investment in the forthcoming IPOs of blue chip companies". Secondary Market: "Bhavesh was inclined to buy existing securities of the other companies to build his investment portfolio".
Topics: Capital Market
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