2 Most VSAQ’s of Financial Markets Chapter in Inter 2nd Year Commerce (TS/AP)

Table of Contents

2 Marks

VSAQ-1 : Capital Market. (OR) What is capital Market?

The capital market is a financial market that facilitates the long-term financing of business entities through the issuance and trading of securities. This market comprises both primary and secondary markets and involves participants such as banks, corporations, financial institutions, and retail investors.

VSAQ-2 : Mutual Fund. (OR) What is Mutual Funds?

A mutual fund is an investment vehicle that collects funds from numerous investors and utilizes the pooled resources to invest in a diversified portfolio of assets, including stocks, bonds, government securities, and other financial instruments. The primary objective of a mutual fund is to generate profits for its investors, who receive returns in the form of dividends or capital appreciation.