1.
Under this method of floatation in primary market, a subscription is invited from general public to invest in the securities of a company through the issue of advertisement.
2.
They can be issued to individuals, corporations and companies during periods of tight liquidity when the deposit growth of banks is slow but the demand for credit is high.
3.
A company can raise capital through the primary market in the form of
4.
The capital market consists of
5.
A rise in call money rates makes other sources of finance such as commercial paper and certificates of deposit
6.
It is a short-term, negotiable, self-liquidating instrument which is used to finance the credit sales of firms.
7.
Who issues a treasury bill?
8.
Suppose an investor purchases a 91 days Treasury bill with a face value of Rs. 2,00,000 for Rs. 1,92,000. By holding the bill until the maturity date, the investor receives Rs. 2,00,000. What is the amount of interest received by him?
9.
It is used as an alternative to bank borrowing for large and creditworthy companies,
10.
It is a method by which banks borrow from each other to be able to maintain the cash reserve ratio.