What is meant by Securities
Answer: Securities (as defined under the Securities Regulation Act 1956) include stocks, shares, bonds debentures or any other similar instruments in or of a body corporate.
What is Securities Market?
Answer: It is an institution where securities like shares, bonds, debentures etc. are bought and sold.? be bought and sell can buy and sell securities Explanation: Example 5- Solved security market The place Selling of Shares, Debenture etc.. a trade can Or entering Buying Besides shares it also include Bonds, as per above mentioned in the definition
Why Securities market require Regulators?
Answer: Market regulators keep market players in line in a desired direction so that the Securities Markets can function as one of the sources of finance for corporate and government while protecting Investors.
Who regulates the Securities Market?
Answer: Department of Economic Affairs, Department Of Company Affairs (DCA), Reserve Bank
Regulating the Bazar at Stock ExchangeAnswer=SEBI / Appropriate Regulatory Authority in the relevant jurisdiction
Securities
What They Are
Financial Instruments: Property that can be bought or sold in the market for a sum of money.
Represent Value: Demonstrate ownership (stocks) or a creditor relationship (bonds).
Raise Capital: Who can issue (companies for growth, government for projects).
Key Types of Securities
Equity: Stocks representing ownership.
Debt: Bonds, debentures (loans to issuers)
.Derivatives: Such as futures, options (value is derived from underlying assets).Hybrid: Combination of both debt and equity.
How They WorkPrimary Market:
The market where a new issue of securities is issued (e.g. IPO) in order to raise initial capital.Secondary Market: Where already issued securities are bought and sold among investors (through a stock exchange like NSE/BSE) providing liquidity.Purpose & RegulationFlow of Capital: Direct savings to productive investments.Liquidity: Let investors to cash out.Regulation: By entities such as SEBI(says of India) or SEC (says of US.
