Some possible Revision Notes for the chapter " Financial Markets" in Class 12 Business Studies are:
Financial markets are places where different types of financial instruments such as stocks, bonds, and securities are traded. Below are the revision notes for business studies chapter financial markets class 12:
1. Meaning of Financial Markets:
Financial markets are places or electronic platforms where the buying and selling of financial instruments take place.
2. Classification of Financial Markets:
Financial markets can be classified into two categories: primary markets and secondary markets.
- Primary markets: Primary markets are where new securities, such as stocks or bonds, are issued for the first time by companies or governments to raise capital.
- Secondary markets: Secondary markets are where previously issued securities are traded among investors.
3. Types of Financial Markets:
The following are the types of financial markets:
- Capital markets: Capital markets deal with long-term securities such as stocks, bonds, and mutual funds.
- Money markets: Money markets deal with short-term securities such as treasury bills, commercial papers, and certificates of deposits.
- Derivatives markets: Derivatives markets deal with financial instruments whose value is derived from an underlying asset, such as options and futures contracts.
4. Stock Exchange:
A stock exchange is an organized market where securities are bought and sold. The following are the functions of a stock exchange:
- Providing a platform for buying and selling securities
- Providing liquidity to securities
- Providing transparency and fair pricing of securities
- Providing a safe and regulated environment for trading of securities
5. Securities and Exchange Board of India (SEBI):
SEBI is a regulatory body that oversees the functioning of securities markets in India. The following are the functions of SEBI:
- Regulating the securities market
- Protecting the interests of investors
- Promoting fair practices in securities markets
- Regulating intermediaries in securities markets
6. Mutual Funds:
Mutual funds are a type of investment vehicle that pools investors' money to buy securities. The following are the advantages of investing in mutual funds:
- Diversification of the portfolio
- Professional management of the portfolio
- Easy and affordable access to the stock market
- Liquidity and flexibility
In conclusion, financial markets are essential for the functioning of the economy as they provide a platform for the exchange of funds. Different types of financial markets such as capital markets, money markets, and derivatives markets have their own characteristics and functions. SEBI is responsible for regulating the securities markets in India, while mutual funds offer an easy and diversified way of investing in the stock market.
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