Functions of Financial Markets, Share Allotment Procedure, SEBI, and Key Provisions
Functions of Financial Market
- Transfer of Resources: Financial Market facilitates the transfer of real economic resources from lenders to ultimate users.
- Productive Usage: Financial Market allows productive use of the funds. In the hands of the investors, their excess funds would have remained idle. Borrowers use these funds for productive purposes.
- Enhancing Income: Financial Market allows lenders to earn interest or dividend on their surplus funds, thus leading to the enhancement of the individual
Understanding Economics: Concepts and Calculations
Be able to identify the resources: labor, capital, natural resources, entrepreneurs
Know the difference between supply and demand and quantity supplied and quantity demanded. Remember that a change in quantity demanded and quantity supplied is only caused by a change in the price of the product sold, while a change in demand and supply are caused by the factors listed above.
Know the income and the substitution effects and how they affect demand.
Know what shifts the supply and the demand curves.
Demand
Globalisation, Multinationals, and Free Trade: Advantages and Disadvantages
Globalisation
Globalisation is the process by which economies, businesses, and cultures become interconnected and integrated across the world. This can be seen in the increasing international trade and communication, the growth of multinational corporations, and the spread of cultural influences such as music, fashion, and technology.
BENEFITS:
- Globalisation involves the free movement of goods, services, capital, labour, and technology.
- This leads to intense competition among countries.
- Enterprises in
Difference Between Private and Public Companies
| Point of Difference | Private Company | Public Company |
|---|---|---|
| Number of Members | Must have a minimum of 2 and a maximum of 200 members (excluding employees). | Must have a minimum of 7 members, with no upper limit on the number of shareholders. |
| Number of Directors | Requires a minimum of 3 directors. | Requires a minimum of 3 directors. |
| Invitation to the Public | Cannot invite the public to subscribe for shares or debentures. | Can invite the general public to subscribe for shares and debentures through an Initial Public Offering |
Competitive Marketing Study Questions and Quizzes
Study Questions 2.1
1. Monopolistic competition has:
a) Many suppliers with a variety of products, each of which has a small market share
2. Perfect competition has: c) Many suppliers selling essentially the same product
3. Market share is measured as: a) Company sales in $s divided by total industry $ sales over a specified time period x 100%
4. Market share is measured: e) All the listed options are correct
5. The key to competitive research is to focus on and understand:
b) Competitors’ added value
Direct Marketing and Distribution Strategies
Which of the following advertising functions is a hierarchy-of-effects model of advertising effect because consumer learning about the product leads to belief changes, which lead to changes in feelings (attitude) toward the product, which lead to buying the product?
b) LFB
Which advertising model assumes thoughtful decision-making?
a) LFB
Romantic fragrance ads are an example of which advertising model?
c) FBL