Related InterviewSolutions

• SEBI is the watch dog of security market. Do you agree ? Give three reasons in support of your answer.
• State one development function of SEBI.
• Give one regulatory function of SEBI.
• In case of public issue of shares, in order to save company from undersubscription, the issue may beA. insuredB. riggedC. underwrittenD. All of the above
• ABC Ltd. issued prospectus for the subscription of its shares for RS. 500 crores in 2008. The issue was oversubscribed by 20 times. The company issued shares to all the applicants on pro-rata basis. Later SEBI inspected the prospectus and found some misleading statement about the management of the company in it. SEBI imposed a penalty of RS. 5 crores and banned its three executive directors for dealing in securities market for three years. Identify the function and its type performed by SEBI in the above case.
• A company wants to set up a new branch in Chennai.For additional capital company is planning to isssue equity shares to public as there is boom period in capital market and public will prefer to invest in shaes. While analysing the issue, finance manager found that floatation csots of the issue would be high and company is already in liquidity crunch. Company deemed it propre to depend market instruments for about six months. (i) Identify the method of flotion of capital, mentioned above. (ii) Besides above shares issue method, mention two other methods. (iii) Use of what kind of instrument will be appropriate for the money market.
• Funds raised through commercial paper are used to meet the floatation costs are known asA. equity financingB. bridge financingC. debt financingD. None of these
• What are the methods of floatation in primary market?
• What do you understand by insider trading ?
• What is the latest trading system in the stock exchange?