1. Name of the teacher: Prasad S R
Subject: Business Studies
Unit: Capital Market
Topic: Stock Exchange
Standard: XII
2. Capital market is the
market for medium & long
term funds. It is an
organised market
consisting of suppliers and
users of funds and
institutions which assist
them.
3. Stock exchange is an organised market, where
second hand securities are bought and sold.
Securities include shares, debentures and
bonds issued by companies & Government.
4. A stock exchange performs the following
functions.
5. Stock exchange provides a ready& continuous
market for the securities issued by companies
& Government.
6. Stock exchange helps in determining the prices
of various securities.
7. Fair dealings & safety of funds are ensured
through Government control on the working of
stock exchanges.
8. By providing avenues for investment of
surplus funds, stock exchanges help in
mobilisation of savings of individuals.
9. Stock exchange direct flow of savings into
productive investments.
10. Stock exchange is highly sensitive to the
economic & business conditions in the country.
11. A stock exchange has to abide by the rules &
regulations & that exercise control over the
working of companies.
12. By dealing in large number of listed securities,
a stock exchange serves as a medium of useful
business information.
