Class 12 Business Studies - HARYANA
Financial Markets
The chapter Financial Markets in Business Studies for Class 12 explores the vital link between savers and investors in the economy. Students will learn about the classification of financial markets into Money Market and Capital Market, with a detailed study of primary and secondary markets. Key topics include the functions of the Stock Exchange, the role of SEBI (Securities and Exchange Board of India) in protecting investors, and various money market instruments like Treasury bills and Commercial paper. Mastering this chapter is crucial for BSEH board exams as it tests conceptual clarity through direct definitions, differentiations, and application-based questions.
Start Learning FreeKey Concepts
Financial Market
A market that creates and exchanges financial assets, bridging the gap between those who have surplus funds (savers) and those who need funds (investors).
Money Market
A market for short-term funds with maturity periods up to one year, dealing in monetary assets like Treasury bills, Commercial paper, and Call money.
Capital Market
A market that deals in medium and long-term funds, comprising both primary and secondary markets to facilitate long-term corporate and government investments.
Primary Market
Also known as the new issue market, it is where companies raise fresh capital by issuing new shares or debentures directly to investors.
Secondary Market
Commonly known as the stock market or stock exchange, it is a marketplace for the buying and selling of previously issued securities.
SEBI (Securities and Exchange Board of India)
The apex regulatory body established to protect the interests of investors in securities and to promote and regulate the development of the securities market.
Important Formulas
Board Exam Info
In the Haryana Board (BSEH) Class 12 Business Studies exam, this chapter typically carries around 6 to 8 marks. Questions often include objective-type/MCQs, distinguishing between Money Market and Capital Market, functions of a Stock Exchange, and objectives of SEBI.
Frequently Asked Questions
What is the difference between primary and secondary markets?
In the primary market, securities are sold for the first time by the issuer to investors (new issues), whereas in the secondary market, existing securities are traded among investors.
What are the main instruments of the money market?
Key money market instruments include Treasury Bills (T-bills), Commercial Paper, Call Money, Certificate of Deposit, and Commercial Bill.
What are the primary functions of SEBI?
SEBI's functions are categorized into regulatory functions (regulating brokers and market participants), protective functions (preventing insider trading and fraud), and developmental functions (promoting investor education and training intermediaries).
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