Category: Class 12th

UNIT 11

MARKETING MANAGEMENT

Introduction :

Marketing management is an important functional area of business.

– It is the process of planning, organising, directing and controlling the activities related to marketing of goods and services to satisfy customers needs & achieve organisational goals.

Market :

In the traditional sense, the market means a place where buyers & sellers gather to enter into transaction involving the exchange of goods & services. But in modern sense, market refers to meeting of buyers and sellers at a place, by telephone or by internet etc.

Marketing :

Markerting is a social process whereby people exchange goods & services for money or for something of vaue to them. Any thing that is of value to the other can be marketed e.g.

1.	Physical Products	– T.V. Mobile phone etc.
2.	Services	– Insurance, education etc.
3.	Person	– Selection for different posts.
4.	Place	– Agra Taj Mahal , etc.

Importance features of Marketing :-

1. Need and want : Satisfaction of the needs and wants of individuals and organisations.
2. Creating a market offering : Complete offer for a product of service.
3. Customer value : greatest benefit or value for the money.
4. Exchange mechanism : Exchange of products / services for money / value.

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Functions of Marketing / Marketing activities

1. Marketing research : Gathering and analysing marketing information i.e. what the customers want to buy, when they are likely to buy in what quantitis do they buy, from where do they buy etc.
2. Marketing planning : Specific plan for increasing the level of production, promotion of the products etc and specify the action programmes to achieve these objectives.
3. Product designing and development ; Marketer must take decision like, what-product? Which model / size ? brand name? Packaged ? quality level? So that customer needs are satisfied.
4. Buying & assembling : e.g. car. Raw material like steel, tyres, batteries, seats, stearing wheels etc are bought & them assembled in the form of a complete product.
5. Packing / Labelling : designing the package & labelling.
6. Branding : Creating a distinct identity of the product from that of competitors e.g. Videocon washing machine.

Concepts & Philosophies of Marketing :-

1. Production concept : Profits could be maximised by producing products at a large scale, thereby reducing average cost of production.

Drawback : Customer donot always buy inexpensive products.

1. Product concept : Business goals lies in making high quality products as customer favour them.
2. Sales Concept : Firms must undertake aggresive selling & promotion efforts to make customers buy their products.

Marketing Management :

Marketing management means management of the marketing function which

are

1. Choosing a target market.
2. Creation of demand
3. Creating, developing & communicating superior value for the customers.
4. Market Shares.
5. Goodwill
6. Planning & controlling marketing activities.

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Marketing Mix :

Marketing mix refers to ingredients or the tools or the variables which the markets mixes in order to interact with a particular markets.

Elements / 4 Ps of Marketing mix

1. Product Mix : Product live e.g. Hindustan Lever Limited – Colgate, lifebouy etc.

Elements

Branding Packaging Labelling

2. Price Mix : Value (Money) in lieu of product / Service recieved by seller from a buyer.

3. Promotion mix : informing the customers about the products & pursuading them to buy the same.

4. Place Mix : Physical distribution : Various decision regarding distribution of products.

• Channels of distribution : Whether wholesalers, retailors to be used or not.
• Physical movement of the products from producer to consumers.
• Storage, transportation, managing inventory (stock) etc.

Products :

Product is anything that can be offered to a market to satify a want or need.

1. Consumer Product : Purchased by the ultimate consumers for personal needs.

e.g. Soap, toothpaste, textile etc.

1. Industrial Products : Used as inputs in producing other products eg. raw materials, toots etc.

Detailed Study of 4 P s (Elements) of Marketing Mix :

PRODUCT MIX Three components are

1. i) Branding – giving a name / a sign / a symbol etc to a product eg. :Pepsi –

Nike

Qualities of a good Brand Name :

1. Simple and short : A brand name should be simple and short as Tata, Bata.
2. Easily Pronunceable : A brand name should be easily pronunceable as Lux, Dalda.
3. Suggestive : Brand name should be self explanatory that suggesting the inherent quality of the product as Ujjala suggest more whiteness.
4. Distinctive : Brand name should be so distinctive that it highlights itself in the group of other brand name such as : Tide, Perk.

Advantages of Branding

1. Brand name helps in advertising in an easier way.
2. Brand name establishes permanent identity of the product.
3. Branded products can be easily identified by consumers.
4. Brand name promotes repurchasing.

2. ii) Packaging : Act of designing and producing the container or wrapper of a product.

– Good packaging often helps in selling the product so it is called a silent salesman.

Functions of Packaging

1. Product Identification : Packaging help in identification of the product.
2. Product Protection : The main function of the packing is to provide protection to the product from dirt, insect and breakage.
3. Convenience : It provides convenience in carriage, stocking and in consuming.

Product Promotion : Packaging simplifies the work of sales promotion.

Advantages of Packaging

1. Rising standards of Health and Sanitations : The people are becoming health conscious they like to buy packed goods. The reason is that the chances of adulteration in such goods are minimised.
2. Innovational Opportunity : With the increasing use of packaging more innovational opportunity becomes available in this area for the researchers.
3. Product Differentiation : Packing is helpful in creating product differentiation. The colour, material and size of the package makes differences in the quantity of the product.

3) Labelling – Description of the product, its contents, the manufacturers,

date & time of manufacturing

– Helps in promotion / grading / identifying the product.

Function of Labelling :

1. Describe the product and specify its contents.
2. Grading of Product
3. Identification of the Product or Brand.
4. Help in promotion of Product.
5. Providing information required by law.

PRICE MIX : –

Price, pricing strategies, Price determination.

Price – Amount of money paid by a buyer (or recieved by a seller) in

consideration of the purchase of product or a services.

Pricing Strategies Price skimming – higher prices at initial stages to recover fixed costs.

Penetration pricing – Lower initial price to capture a large market.

Price determination / Factors affecting Pricing decisions

1. Pricing objectives : affects price of product / service e.g. maximum profits in short term leads to high price.
2. Product cost : Sets lower limits of the price.
3. Extent of competition in the market : No competition means complete freedom in fixing its price.
4. Utility & demand : More demand – Move price. Sometimes Less price – more demand depends upon the utility of the product.

Place Mix/ Physical Distribution Mix :

Covers all the activities required to physically move goods from manufacturers to the customers. Important activities includes.

1. Order processing : Accurate & speedy order processing leads to profit & goodwill & vise versa.
2. Transportation : Add value of the goods by moving them to the place where they are required.
3. Inventory control : Additional demand can be met in less time, the need for inventory will also be low.
4. Ware-housing : Need arises to fill the gap between the time of product is produced & the time it is required for consumption.

Channels of Distribution :

Direct Chennal – Manufacturer – Customer Indirect Chennal – Manufacturer – Retailer – customer

Manufacturer – wholesaler – Retailer – customer Manufacturer – Agent – wholesaler – Retailer customer

Factors Determining Choice of Channels of Distribution :-

Choice of appropriate channel of distribution is a very important marketing decision, which affects the performance of an organisation. Whether organisation will adopt direct marketing channels or long channels involving no. of intermediaries is a strategic decision.

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Factors Determining Choice of Channels of Distribution

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Market related Factor

1. Size of the market – no of customers – more customers more intermediates
2. Geographical concentration – concentrated buyers – direct selling spread customers – more intermediates
3. Size or order – i.e. quantity purchase –

Less – more intermediates More – direct selling

Promotion Mix

It refers to combination of promotional tools used by an organisation to

achieve its communication objectives.

Tools

1. Advertising : Most commonly used tool of promotion. It is an impersonal

form of communication, which is paid by the marketers (sponsors) to

promote goods or services. Common mediums are newspaper ,

magazine , television & radio .

Role or Importance of Advertising :

1. Enhancing customer satisfaction and confidence.
2. Helpful in increasing the demand of existing product.
3. Helpful to increase the Market Area.
4. Helpful in generating more employment.
5. Helpful in the economic development of the country.
6. Knowledge of various product.
7. No fear of exploitation.

Product Related Factor

1. Nature of product – technical (made to order) – direct selling
2. Penshable (direct / short channels); Non perishable – Long Channels.
3. The unit value of the product – costly – direct selling,
4. Product Complexity – Complex products – direct selling

Company related factor

1. Financial strength of the company

• Strong – direct / own channel
• Weak – middleman required.

1. Degree of control – Greater control Short/ direct channel.
2. Management – Sufficient knowledge

• direct selling & Vice versa.

Objections to Advertising :

1. Add to Cost
2. Undermines social value.
3. Confuses the buyers
4. Encourages sale of inferior product.
5. Some advertisement are in bad taste.

2. Sales Promotion :-

Short term incentives designed to encourage the buyers to make immediate purchase of a product / service.

Techniques

1.	Rebate : Special price to clear off excess inventory.
2.	Discounts : Price reduced to induce buyers to buy	more.
3.	Sampling : Free sample of a product to customers to try product & learn about it.
4.	Lucky draw : Lucky draw coupon eg. purchase an win a car. etc.	easy product &
5.	Full Finance @ 0%
6.	Contests.

3. Personal Selling :

Personal selling consists of contacting prospective buyers of product personally.

Features of the Personal Selling :

1. Personal contact is established under personal selling.
2. Oral conversation.
3. Quick solution of queries.
4. Receipt of Additional Information.
5. Development of reletionship.

Qualities of a good Salesman :

1. Physical Qualities : Physical qualities include personality health, stamina and tolerance
2. Mental Qualities : These include mainly skill, mental alertness, imagination and self confidence.

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	3. Social Qualities : These include social-abilities tact, sound character, sweet nature.
	4. Vocational Qualities : It includes mainly knowledge of product, knowledge of competitive product, training and aptitude.
4.	Publicity : is a non-personal form of communication & against advertising it is a non-paid form of communication e.g. If a manufacturer develops a car engine runs on water instead of petrol & this news is covered by television/ radio/ newspaper, it would be termed as publicity as the manufacturer benefit from it without bearing any cost. Merit : Mass reach, more credibility Limitation : Not with in th control of firm.
Public Relations :
Public relations is the deliberate planned and sustained efforts to establish and maintain mutual under standing between an organisation and its public
Features of Public Relation :
1.	Securing cooperation of Public
2.	Satisfying different group.
3.	Engaging in dialogue
4.	It is ongoing activity.
5.	Succesful relation with public.
Role of Public Relation
1.	This is economical Medium
2.	Boosting sales
3.	Image Building
4.	Easy to attract the public
Tools to Establish Public Relations :
1.	Speech
2.	Printed Materials
3.	Public services Activities
4.	Events
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QUESTION : MARKETING MANAGEMENT

One Mark Question

1. Define marketing management in present context.
2. Outline one objective of marketing management.
3. What is marketing research?
4. What is meant by product Mix?
5. What is a trade mark?
6. Which marketing philosophy gives more importance to consumer welfare instead of consumer satisfaction.
7. State any one Pillar of marketing concept.
8. Name the channel where in goods are made directly available by the manufacturer to consumers without involving any intermediary.
9. A lunch box free with Kissan Sauce is an example of the techniques of sales promotion. Name the technique.
10. Write any two brand names available in the market.
11. State any one feature of convenience goods.
12. Toothpaste is packed in a tube is an example of which type of packing.
13. Which concept of Marketing suggests that the organisation should earn profit through volume of production.
14. Name any two products which are subject to process of grading.
15. Name the element of marketing mix which makes the product available to the target customers.

Three or Four mark Questions

1. Explain any three advantage of labelling to the customers.
2. Differentiate between marketing and selling on the basis of :

(i) Meaning (ii) Scope (iii) Objectives.

1. Write any four difference between advertising and personal selling.
2. State any three advantages of sales promotion.
3. Explain any four functions of packing.
4. Advertising confuses rather than helps Do you agree? Give reasons.

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Five or Six Marks Questions

1. Explain the various functions of marketing management.
2. Explain four important elements of marketing mix.
3. Explain any four factors on which the choice of channels of distribution depend.
4. Advertising encourges sale of inferior products Do you agree? Give reasons.
5. Why public relations are important for an organisation.
6. Explain four qualities of a good brand.
7. Explain three methods of sales promotion.

UNIT 10

FINANCIAL MARKETS

Introduction :

Financial Market is a market for creation and exchange of financial assets like share, bonds etc. It helps in mobilising savings and channelising them into the most productive uses. It helps to link the savers and the investors by mobilizing funds between them. The person / Institution by which allocation of funds is done is called financial intermediaries.

Functions of Financial Market.

1. Mobilisation of Savings and channeling them into the most productive

uses: Financial market facilitates the transfer of savings from savers to investors and thus helps to channelise surplus funds into the most productive use.

1. Help in Price Determination : Financial Market helps in interaction of savers and investors which in turn helps in the determination of prices of the financial assets such as shares, debentures etc.
2. Provide Liquidity to Financial Assets : Financial market ficilitate easy purchase and sale of financial assets. Thus, it provide liquidity to them so that they can be easily converted into cash whenever required.
3. Reduce cost of transactions : Financial market provide valuable information about securities which helps in saving time, efforts and money and thus it reduces cost of transactions.

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Money Market

It is a market for short term funds / securities whose period of maturity is upto one year. The major participants in the money market are RBI, Commercial Banks, Non-Banking Finance Companies, State Government, Large Corporate Houses and Mutual Funds. The main instruments of money market are as follows.

1. Treasury Bills : They are issued by the RBI on behalf of the Central Government to meet its short-term requirement of funds. They are issued at a price which is lower than their face value and repaid at par. They are available for a minimum amount of Rs. 25,000 and in multiples thereof. They are also known as Zero Coupon Bonds.
2. Commercial Paper : It is a short term unsecured promisory note issued by large and credit worthy companies to raise short term funds at lower rates of interest than market rates. They are negotiable instrument transferable by endorsement and delivery with a fixed maturity period of 15 days to one year.
3. Call Money : It is short term finance repayable on demand, with a maturity period of one day to 15 days, used for interbank trasactions. Call Money is a method by which banks borrow from each other to be able to maintain the cash reserve ratio as per RBI. The interest rate paid on call money loans is known as the call rate.
4. Certificate of Deposit : It is an unsecured instrument issued in bearer form by Commercial Banks & Financial institutions. They can be issued to

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individuals, Corporations and companies for raising money for a short period ranging from 91 days to one year.

5. Commercial Bill : It is a bill of exchange used to finance the working capital requirements of business firms. A seller of the goods draws the bill on the buyer when goods are sold on credit. When the bill is accepted by the buyers it becomes a marketable instrument and is called a trade bill. These bills can be discounted with a bank if the seller needs funds before the bill maturity.

Capital Market :

It is a market for long term funds where debt and equity are traded. It consists of development banks, commercial banks and stock exchanges. The capital market can be divided into two part.

1. Primary Market.
2. Secondary Market

Primary Market :

It deals wth the new securities which are issued for the first time. It is also known as the new issues market. The investors in this market are banks, financial institutions, insurance companies, mutual funds and individuals. It has no fixed geographical location and only buying of securities take place in the primary market.

Secondary Market :

It is also known as the stock market or stock exchange where purchase and sale of existing securities take place. They are located at specified places and both the buying as well as selling of securities take place.

Methods of flotation of New Issues in the Primary Market

1. Offer through Prospectus : It involves inviting subscription from the public through issue of prospectus. A prospectus makes a direct appeal to investors to raise capital through an advertisement in newspapers and magazines.
2. Offer for sale : Under this method securities are offered for sale through intermediaries like issuing houses or stock brokers. The company sells securities to intermediary / broker at an agreed price and the broker resell them to investors at a higher price.

3.	Private Placements : It refers to the process in which securities are allotted to institutional investor and some selected individuals.
4.	Rights Issue : It refers to the issue in which new shares are offered to the existing shareholders in proportion to the number of shares they already possess.
5.	e-IPOs :- It is a method of issuing securities through on-line system of stock exchange. A company proposing to issue capital to the public through the on-line system of the stock exchange has to enter into an agreement with the stock exchange. This is called an e-initial public offer. SEBI registered brokers have to be appointed for the purpose of accepting applications and placing orders with the company.
Difference between Capital and Money Market.
	Basis	Capital Market	Money Market
1.	Participants	Financial Institutions, Banks Corporate Entities, foreign investors and individuals	RBI, Banks, Financial Institutions & finance companies
2.	Instruments Traded	Equity shares, bonds preference shares and debentures	Treasury Bills, trade bills, commercial paper, call money etc.
3.	Investment outlay	Does not necessarily require a huge financial outlay	Entail huge sums of money as the instruments are quite expensive.
4.	Duration	Deals in medium & long term securities having maturity period of over one year.	Deals in short term funds having maturity period upto one year.
5.	Liquidity	Securities are less liquid as compared to money market securities.	Money market instruments are highly liquid.
6.	Expected Return	High return	Low return
7.	Safety	Capital Market instruments are riskier both with respect to return and repayment.	Money market instrument are generally much safer with a minimum risk of default.
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Difference between Primary and Secondary Market

Basis

1. Securities
2. Price of Securities
3. Purchase & Sale.
4. Place of Market
5. Medium

Primary Market

Only new Securities are traded.

Prices of securities are determined by the management of the company.

Securities are sold to investors directly by the company or through intermediary.

There is no fixed geographical location

Only buying of securities takes place

Secondary Market

Existing securities are traded.

Price are determined by the forces of demand and supply of the securities.

Investors exchange ownership of securities.

Located at specified places.

Both buying & the selling of securities can take place.

Stock Exchange / Share Markets

A stock Exchange is an institution which provides a platform for buying and selling of existing securities. It facilitates the exchange of a security i.e. share, debenture etc. into money and vice versa. Following are some of the important functions of a stock Exchange.

1. Providing liquidity and Marketability to Existing Securities : Stock Exchange provide a ready and continuous market for the sale and purchase of securities.
2. Pricing of Securities : Stock Exchange helps in constant valuation of securities which provide instant information to both buyers and sellers and thus helps in pricing of securities which is based on the forces of demand & supply.
3. Safety of transaction : The members of a stock exchange are well regulated, who are required to work within the legal framework. This ensures safety of transactions.
4. Contributes to Economic Growth : Stock exchange provide a platform by which saving get channelised into the most productive investment proposals, which leads to capital formation & economic growth.
5. Spreading of Equity cult : Stock exchange helps in educating public about investments in securities which leads to spreading of Equity culture.

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6. Providing scope for speculation : Stock exchange provides scope within the provisions of law for speculation in a restricted and controlled manner.

Trading Procedure on a Stock Exchanges.

1. Selection of Broker : In order to trade on a stock Exchange first a broker is selected who should be a member of stock exchange as they can only trade on the stock exchange.
2. Placing the order : After selecting a broker, the investors specify the type and number of securities they want to buy or sell.
3. Executing the order : The broker will buy or sell the securities as per the instructions of the investor.
4. Settlement : Transactions on a stock exchange may be carried out on either cash basis or a carry over basis (i.e. badla). The time period for which the transactions are carried forward is referred to as accounts which vary from a fortnight to a month. All transactions made during one account are to be settled by payment for purchases and by delivery of share certificates, which is a proof of ownership of securities by an individual.

Earlier trading on a stock exchange took place through a public outcry or aution system which is non replaced by an online screen based electronic trading system. Moreover, to eliminate, the problems of theft, forgery, transfer delays etc an electronic book entry from a holding and transferring securities has been introduced, which is called process of dematerialisation of securities.

National Stock Exchange of India (NSE)

NSE was set up by leading financial institutions, banks, insurance companies and other financial intermediaries in 1992 and was recognised as a stock exchange in April 1993. It has provided a nation wide screen based automated trading system with a high degree of transparency and equal access to investors irrespective of geographical location. NSE was set up with the following objectives.

1. Establishing a nation-wide trading facility for all types of securities.
2. Ensuring equal access to investors all over the country through an appropriate communication network.
3. Enabling shorter settlement cycles and book entry settlements.
4. Providing a fair, efficient and transparent securities market using electronic trading system.
5. Meeting international bench marks & standards.

NSE provides trading in following two segments :

1. Whole sale Debt Market Segment which provide platform for a wide range of fixed income securities such as Government Securities, treasury bills, state development loans, PSU bonds etc.
2. Capital Market Segment which provide platform for equity shares, preference shares, debentures etc. as well as retail Govt. securities.

Over the Counter Exchange of India (OTCEI)

OTCEI was promoted by UTI, ICICI, IDBI, IFCI, LIC, GIC, SBI Capital Markets and can Bank Financial Services. It is a place where buyers seek sellers and vice-versa and then attempt to arrange terms and conditions for purchase / sale acceptable to both the parties. It is fully computerised, transparent, single window exchange which provide quicker liquidity to securities at a fixed and fair price, liquidity for less traded securities. Following are the advantages of OTC Market.

1. It provides a trading platform to smaller and less liquid companies.
2. It is a transparent system of trading with no problem of bad or short deliveries.
3. Family concerns & closely held companies can go public through OTC.
4. Dealer can operate both in new issues & secondary market at their options.
5. It is cost effective as there is a lower cost of new issues and lower expenses of servicing the investors.

Difference beteen NSEI and OTCEI

	Basis	NSEI
1.	Establishment	1992
2.	Settlement	within 15 days
3.	Security	In whole sale debt
	Traded	Market segment Treasury

OTCEI

1990

within 7 days Equity, debentures etc.

bill, PSU Bonds etc & In Capital Market segment equity shares, preference shares, debentures

4. Objectives To provide nation

wide, ringless transparent trading facility for all instruments.

To serve as an exchange for securities of small companies.

5. Size of the Paid up capital Paid up capital

company Rs. 3 Crore & above Rs. 30 Lakh & above.

Depository Services and D mat Accounts :

Keeping in the mind the difficulties to transfer of shares in physical form SEBI has developed a new system in which trading in shares is made compulsory in electronic form Depository services and D Mat Account are very basis of this system.

Depository Services :

Now a days on line paper-less trading in shares of the company is compulsory in India. Depository services is the name of that mechanism. In this system transfer of ownership in shares take place by means of book entry without the physical delivery of shares. When a investor wants to deal in shares of any company he has to open a D Mat account. There are four players who participate in this system.

1. The Depository : A depository is an institution which hold the shares of an investor in electronic form. There are two depository institution in India these are NSDL and CDSL.
2. The Depository Participant : He opens the Account of Investor and maintains securities records.
3. The Investor : He is a person who wants to deal in shares whose name in recorded.
4. The Issuing Company : That organisation which issue the securities. This issuing company send a list of the shareholders to the depositories.

D Mat Accounts :

In this process a shares certificates converted its physical form to electronic form and credited the same number of holding to D mat A/c.

Benefits of D Mat Account :

1. Reduces of paper work.
2. Elimination of problems on transfer of shares such as loss, theft and delay.
3. Exemption of stamp duty when transfer of shares.
4. The concept of odd lot stand abolished.
5. Increase liquidity through speedy settlement.
6. Attract foreign investors and promoting foreign investment

Depository System Parallel to Banking System

The depository system in parallel to the Banking System. A bank holds cash in account the depository hold shares in account. The transfer of cash and shares take place with-out the physical handling of cash or shares.

Securities and Exchange Board of India (SEBI)

SEBI was established by Government of India on 12 April 1988 as an interim administrative body to promote orderly and healthy growth of securities market and for investor protection. It was given a statutory status on 30 January 1992 through an ordinance, which was later replaced by an Act of Parliament known as the SEBI Act, 1992.

Objectives of SEBI

1. To regulate stock exchange and the securities market to promote their orderly functioning.
2. To protect the rights and interests of investors and to guide & educate them.
3. To prevent trade malpractices such as internal trading.
4. To regulate and develop a code of conduct and fair practices by intermediaries like brokers, merchant bankers etc.

Function of SEBI

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Regulatory Functions

1. Framing Rule & Regulations
2. Registrations of broker & sub-brokers
3. Registration of collective investment schemes & mutual funds.
4. Regulation of Stock Brokers, portfolio exchanges, underwriters & Merchant Bankers
5. Regulation of task over bids by companies.
6. Levying fee or other charges as per Act.

1.

2.

3.

4.

5.

Development Functions

Training of intermediaries Conducting Research & Publishing useful information.

Undertaking measures to develop capital market by adapting flexible approach. Educating Investors to broader their understanding Permitting internet trading through registered stock brokers

Protective Functions

1. Prohibiting of frandulent & unfair trade practices.
2. Check on insider trading.
3. Ensure investors protection.
4. Promote fair practice & code of conduct in securities market.
5. Check on price rigging.
6. Check on preferential allotment.

One Marks Questions :
1.	What is the maturity period of a commercial Paper?
2.	What is a Treasury Bill?
3.	AB Ltd. has sold 1 lakh equity shares of Rs. 10 each at Rs. 12 per	share
	to an investment banker, who offered them to the public at Rs. 20 Identify the method of flotation.	each.
4.	State any two instruments of Capital Market.
5.	Who act as the watchdog of Security Market in India?
6.	Who is the Borrowers of call money?
7.	What is the other name of Zero coupon Bodn?
8.	Who issues the treasury Bill?
9.	What is the other name of Primary Market?
10.	What is a Prospectus?
11.	What is Dematerialization?
12.	What is the minimum amount of Treasury Bill?
13.	What is D Mat A/c?
14.	Write one benefit of D Mat Account?
Three / Four Marks Questions
1.	State the various protective functions of SEBI.
2.	What is money market? Explain its three instruments.
3.	What is meant by commercial paper & certificate of Deposit?
4.	Distinguish between NSEI and OTCEI on following basis. Size of the company Securities traded. Settlement Objective.
5.	State any four regulatory functions of the SEBI.
6.	Make difference between Primary and Secodary Market.
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Five/ Size marks Questions.

1. Explain any five / six functions of stock exchange.
2. Why was SEBI set up? State its development functions.
3. Explain any five methods of floating new issues in the primary market.
4. Explain the trading procedure on a stock exchange.
5. Distinguish between capital market and money market on the following

basis.
a)	Participants
b)	Instruments Traded.
c)	Duration of Securities Traded.
d)	Expected Return
e)	Safety
f)	Liquidity.

1. Primary Market contribute to capital formation directly Secondary Market does so indirectly Explain.
2. You are finance expert. Your father feels that there is no difference between Primary Market and Secondary Market. Where do you differ with him. How would you convince him. Give reasons in support of your answer.
3. What are the benefits of depository services and D Mat Account.
4. Explain the constituents of depositry services.
5. Mohan wants to sell 50 shares of Tata Motor. Explain the trading procedure of shares.