{"id":10195,"date":"2021-10-28T15:48:53","date_gmt":"2021-10-28T10:18:53","guid":{"rendered":"https:\/\/scholarsclasses.com\/blog\/?p=10195"},"modified":"2025-10-09T15:44:40","modified_gmt":"2025-10-09T10:14:40","slug":"12th-sp-chapter-12-solutions","status":"publish","type":"post","link":"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/","title":{"rendered":"12th SP Chapter 12 Solutions (Stock Exchange) &#8211; Maharashtra Board &#8211; Free Solution"},"content":{"rendered":"\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_81 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f14328e4387\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f14328e4387\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#12th_SP_Chapter_12_Solutions\" >12th SP Chapter 12 Solutions<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Chapter_12_%E2%80%93_Stock_Exchange\" >Chapter 12 &#8211; Stock Exchange<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q1_A_Select_the_correct_answer_from_the_options_given_below_and_rewrite_the_statements\" >Q.1 A) Select the correct answer from the options given below and rewrite the statements.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q1_B_Match_the_pairs\" >Q.1 B) Match the pairs.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q1_C_Write_a_word_or_a_term_or_a_phrase_that_can_substitute_each_of_the_following_statements\" >Q.1 C) Write a word or a term or a phrase that can substitute each of the following statements.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q1_D_State_whether_the_following_statements_are_true_or_false\" >Q.1 D) State whether the following statements are true or false.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q1_E_Complete_the_sentences\" >Q.1 E) Complete the sentences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q1_F_Select_the_correct_option_from_the_bracket\" >Q.1 F) Select the correct option from the bracket.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q1_G_Answer_in_one_sentence\" >Q.1 G) Answer in one sentence.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q1_H_Correct_the_underlined_words_and_rewrite_the_following_sentences\" >Q.1 H) Correct the underlined word\/s and rewrite the following sentences.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q2_Explain_the_following_termsconcepts\" >Q.2 Explain the following terms\/concepts.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q3_Study_the_following_casesituation_and_express_your_opinion\" >Q.3 Study the following case\/situation and express your opinion.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q4_Distinguish_between_the_following\" >Q.4 Distinguish between the following.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q5_Answer_in_brief\" >Q.5 Answer in brief.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q6_Justify_the_following_statements\" >Q.6 Justify the following statements.<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Q7_Answer_the_following\" >Q.7 Answer the following<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#12th_Commerce_SP_Textbook_Solution\" >12th Commerce SP Textbook Solution<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/#Check_out_other_posts_related_to_12th_Commerce\" >Check out other posts related to 12th Commerce<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"12th_SP_Chapter_12_Solutions\"><\/span><strong>12th SP Chapter 12 Solutions<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h2 class=\"wp-block-heading has-text-align-center has-black-color has-vivid-green-cyan-background-color has-text-color has-background has-medium-font-size\"><span class=\"ez-toc-section\" id=\"Chapter_12_%E2%80%93_Stock_Exchange\"><\/span>Chapter 12 &#8211; Stock Exchange<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_A_Select_the_correct_answer_from_the_options_given_below_and_rewrite_the_statements\"><\/span>Q.1 A) Select the correct answer from the options given below and rewrite the statements.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) A stock exchange is where stock brokers and traders can buy and sell _____.<br><\/strong>a) gold <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">b) securities <br><\/mark><\/strong>c) goods<\/p>\n\n\n\n<p><strong>2) The _____ is the first stock exchange to be recognized by the Indian Government under the Securities Contracts (Regulation) Act.<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">a) BSE <br><\/mark><\/strong>b) NSE <br>c) OTCEI<\/p>\n\n\n\n<p><strong>3) _____ is a dealer in stock exchange who carries on trading of securities in his own name.<br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">a) Jobber <br><\/mark><\/strong>b) Broker <br>c) Bull<\/p>\n\n\n\n<p><strong>4) A _____ who expects fall in price of a security.<br><\/strong>a) bull <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">b) bear <br><\/mark><\/strong>c) jobber<\/p>\n\n\n\n<p><strong>5) The practice of buying and selling within the same trading day before the close of the market on that day is called _____.<br><\/strong>a) insider trading <br><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">b) day trading <br><\/mark><\/strong>c) auction<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"576\" data-src=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/12th-SP-Chapter-12-Solutions-1024x576.jpg\" alt=\"12th SP Chapter 12 Solutions \" class=\"wp-image-10202 lazyload\" title=\"\" data-srcset=\"https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/12th-SP-Chapter-12-Solutions-1024x576.jpg 1024w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/12th-SP-Chapter-12-Solutions-300x169.jpg 300w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/12th-SP-Chapter-12-Solutions-768x432.jpg 768w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/12th-SP-Chapter-12-Solutions-1536x864.jpg 1536w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/12th-SP-Chapter-12-Solutions-640x360.jpg 640w, https:\/\/scholarsclasses.com\/blog\/wp-content\/uploads\/2021\/10\/12th-SP-Chapter-12-Solutions.jpg 1920w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/576;\" \/><figcaption class=\"wp-element-caption\">12th SP Chapter 12 Solutions<\/figcaption><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_B_Match_the_pairs\"><\/span>Q.1 B) Match the pairs.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group A<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group B<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">a) SEBI<\/td><td class=\"has-text-align-center\" data-align=\"center\">1) Expect the price of shares rise in future.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">b) Day Trading<\/td><td class=\"has-text-align-center\" data-align=\"center\">2) Expect the price of shares fall in future.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">c) Bull<\/td><td class=\"has-text-align-center\" data-align=\"center\">3) Buying and selling of securities within the same trading day.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">d) Bear<\/td><td class=\"has-text-align-center\" data-align=\"center\">4) To protect the interest of investors in securities market.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">e) BSE<\/td><td class=\"has-text-align-center\" data-align=\"center\">5) Buying and selling of securities to particular investors.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">6) One of the oldest stock exchange in India.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">7) To protect the interest of companies in securities market.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">8) Buying and selling of securities within a week.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">9) Newest Stock Exchange in India.<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><\/td><td class=\"has-text-align-center\" data-align=\"center\">10) One who invests in new issues of securities.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Answers.   <br><\/strong>a. 4) To protect the interest of investors in securities market.<br>b. 3) Buying and selling of securities within the same trading day.<br>c. 1) Expect the price of shares rise in future.<br>d. 2) Expect the price of shares fall in future.<br>e. 6) One of the oldest stock exchange in India.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_C_Write_a_word_or_a_term_or_a_phrase_that_can_substitute_each_of_the_following_statements\"><\/span>Q.1 C) Write a word or a term or a phrase that can substitute each of the following statements.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) A specific place where trading of securities is arranged in an organized method.<\/strong><br><span class=\"has-inline-color has-vivid-purple-color\">Ans: Share Market<\/span><\/p>\n\n\n\n<p><strong>2) The first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. <\/strong><br><span class=\"has-inline-color has-vivid-purple-color\">Ans: Bombay Stock Exchange<\/span><\/p>\n\n\n\n<p><strong>3) A dealer in stock exchange who carries on trading of securities in his own name.<\/strong><br><span class=\"has-inline-color has-vivid-purple-color\">Ans: Jobber<\/span><\/p>\n\n\n\n<p><strong>4) A speculator who expects the price of shares rise in the future.<\/strong><br><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">Ans: Bull<\/mark><\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Balbharti Textbook Solutions for other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/ocm-12th-commerce-solutions\/\">Solution of all Chapters of SP<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-chapter-1\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-chapter-1\/\" target=\"_blank\" rel=\"noreferrer noopener\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions-chapter-2\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions-chapter-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-3-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-3-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-4-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-4-exercise\/\" target=\"_blank\" rel=\"noreferrer noopener\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-5-exercise-deposits\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-5-exercise-deposits\/\" target=\"_blank\" rel=\"noreferrer noopener\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-6-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-6-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-7-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-7-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-8-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-8-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-9-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-9-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">9<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-10-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-10-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">10<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-11-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-11-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">11<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">12<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_D_State_whether_the_following_statements_are_true_or_false\"><\/span>Q.1 D) State whether the following statements are true or false.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) A stock exchange is a reliable barometer to measure the economic condition of a country.<br><\/strong><span class=\"has-inline-color has-vivid-purple-color\">Ans: True<\/span><\/p>\n\n\n\n<p><strong>2) Bombay Stock Exchange is the oldest stock exchange in India.<br><\/strong><span class=\"has-inline-color has-vivid-purple-color\">Ans: True<\/span><\/p>\n\n\n\n<p><strong>3) A broker is a dealer in stock exchange who carries on trading of securities in his own name.<\/strong> <strong><br><\/strong><span class=\"has-inline-color has-vivid-purple-color\">Ans: False<\/span><\/p>\n\n\n\n<p><strong>4) Bear is a speculator who expects the prices of shares rise in the future.<br><\/strong><span class=\"has-inline-color has-vivid-purple-color\">Ans: False<\/span><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_E_Complete_the_sentences\"><\/span>Q.1 E) Complete the sentences.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) The oldest Stock Exchange in India is the <strong><span style=\"text-decoration: underline;\">Bomaby Stock Exchange<\/span><\/strong>.<\/p>\n\n\n\n<p>2) The largest and most modern stock exchange in India is the <strong><span style=\"text-decoration: underline;\">National Stock Exchange<\/span><\/strong>.<\/p>\n\n\n\n<p>3) A person who buys or sells shares on behalf of his clients is called as <strong><span style=\"text-decoration: underline;\">Broker<\/span><\/strong>.<\/p>\n\n\n\n<p>4) A speculator who expects fall in prices of shares <strong><span style=\"text-decoration: underline;\">Bear<\/span><\/strong>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_F_Select_the_correct_option_from_the_bracket\"><\/span>Q.1 F) Select the correct option from the bracket.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>I)<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group A<\/strong><\/td><td class=\"has-text-align-center\" data-align=\"center\"><strong>Group B<\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">a) Regulator of capital market<\/td><td class=\"has-text-align-center\" data-align=\"center\">1) <span style=\"text-decoration: underline;\"><span class=\"has-inline-color has-vivid-purple-color\">SEBI<\/span><\/span><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><span class=\"has-inline-color has-black-color\">b) <\/span><span style=\"text-decoration: underline;\"><span class=\"has-inline-color has-vivid-purple-color\">Index of NSE<\/span><\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\">2) Nifty<\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\">c) Jobber <\/td><td class=\"has-text-align-center\" data-align=\"center\"><span class=\"has-inline-color has-black-color\">3) <\/span><span style=\"text-decoration: underline;\"><span class=\"has-inline-color has-vivid-purple-color\">Trades in securities in his own name<\/span><\/span><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><span class=\"has-inline-color has-black-color\">d) <\/span><span style=\"text-decoration: underline;\"><span class=\"has-inline-color has-vivid-purple-color\">London Stock Exchange<\/span><\/span><\/td><td class=\"has-text-align-center\" data-align=\"center\">4) Oldest Stock Exchange in the world.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_G_Answer_in_one_sentence\"><\/span>Q.1 G) Answer in one sentence.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) What is Stock Exchange?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> Stock exchange is a specific place where trading of the securities is arranged in an organized manner.<\/p>\n\n\n\n<p><strong>2) Who is Broker?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> He is a member of a stock exchange who is licensed by stock exchange to buy or sell shares on his client\u2019s behalf.<\/p>\n\n\n\n<p><strong>3) Who is Jobber?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> A Jobber is a dealer in stock exchange who carries on trading of securities in his own name.<\/p>\n\n\n\n<p><strong>4) Who is Bull?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> A Bull is a speculator who expects the price of a share to rise in the future and buys with the hope of selling them at the higher prices to earn profit.<\/p>\n\n\n\n<p><strong>5) Who is Bear?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> A bear is a speculator who expects fall in the price of a security.<\/p>\n\n\n\n<p><strong>6) Who is Lame Duck?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> A lame duck is a bear broker whose expectations have gone wrong and makes a loss in his dealings.<\/p>\n\n\n\n<p><strong>7) What is Trading Ring?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> The trading or auction of shares takes place on the floor of the stock exchange which is also known as Trading Ring.<\/p>\n\n\n\n<p><strong>8) What is Sensex?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> It is the Index of the BSE which represents the increase or decrease in prices of stocks of selected group of companies. Sensitive Index called as Sensex is made up of 30 largest and actively traded stocks of listed companies.<\/p>\n\n\n\n<p><strong>9) What is Rally?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> If the Sensex or Nifty moves in upward direction over a period of 14 to 20 trading sessions, it is called as a Rally. Bulls are active during the market rally.<\/p>\n\n\n\n<p><strong>10) What is Crash?<\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> If the Sensex or Nifty moves in downward direction, it is called as a crash. Bears are active during this period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q1_H_Correct_the_underlined_words_and_rewrite_the_following_sentences\"><\/span>Q.1 H) Correct the underlined word\/s and rewrite the following sentences.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>1) One of the functions of SEBI is to protect the interest of <strong><span style=\"text-decoration: underline;\">issuers of securities<\/span><\/strong> in the securities market.<br><strong>Answer: Investors <\/strong><\/p>\n\n\n\n<p>2) A <strong><span style=\"text-decoration: underline;\">Broker<\/span><\/strong> cannot directly deal with investors.<br><strong>Answer: Jobber<\/strong><\/p>\n\n\n\n<p>3) A <strong><span style=\"text-decoration: underline;\">Bear<\/span><\/strong> expects the prices of shares to rise in future.<br><strong>Answer: Bull<\/strong><\/p>\n\n\n\n<p>4) A <strong><span style=\"text-decoration: underline;\">Bull<\/span><\/strong> buys new issues of securities from primary market.<br><strong>Answer: Stag <\/strong><\/p>\n\n\n\n<p>5) A stock market is an important constituent of <strong><span style=\"text-decoration: underline;\">money<\/span><\/strong> market.<br><strong>Answer: Capital<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q2_Explain_the_following_termsconcepts\"><\/span>Q.2 Explain the following terms\/concepts.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">1) Stock exchange<\/span><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> a) Stock exchange is a specific place where various types of securities are purchased and sold.<br>b) The term securities include equity shares, preference shares, debentures, government securities and bonds, etc. including units of Mutual Funds.<br>c) Stock markets act as intermediary between investors and borrowers.<br>d) According to the Securities Contracts (Regulation) Act 1956, the term stock exchange is defined as, \u201cAn association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.\u201d<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>2) <a href=\"https:\/\/economictimes.indiatimes.com\/definition\/bonus-share\" data-type=\"URL\" data-id=\"https:\/\/economictimes.indiatimes.com\/definition\/bonus-share\" target=\"_blank\" rel=\"noreferrer noopener\">Broker<\/a><\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer: <\/strong>a) He is a member of a stock exchange who is licensed by stock exchange to buy or sell shares on his client\u2019s behalf.<br>b) He is an agent between the investors and Jobber.<br>c) His income is in the form of commission or brokerage.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">3) <strong>Jobber<\/strong><\/span><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> a) A Jobber is a dealer in stock exchange who carries on trading of securities in his own name.<br>b) He buys securities as an owner and sells them at a higher price.<br>c) The profit he makes is his income.<br>d) He is a professional speculator in the stock exchange. He is not permitted to deal with investors directly.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">4) Bull<\/span><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> a) A Bull is a speculator who expects the price of a share to rise in the future and buys with the hope of selling them at higher prices to earn profit.<br>b) His views are optimistic.<br>c) Bulls actions leads to higher prices for securities as there is excess of purchase over sales.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">5) Bear<\/span><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> a) A bear is a speculator who expects a fall in the price of a security.<br>b) He sells his securities at the prevailing prices to avoid loss as he expects further fall in prices.<br>c) Bears action leads to lowering the prices of securities as there is excess of sales over purchase.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">6) Contract Note<\/span><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> a) It is a note given by a broker to his client. It will be in a specific form.<br>b) It validates the transaction. Both the broker and the client will have one copy each immediately after the transaction within 24 hours.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q3_Study_the_following_casesituation_and_express_your_opinion\"><\/span>Q.3 Study the following case\/situation and express your opinion.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">1) Mr. Y is a practising Co. Secretary offering advisory services to companies, institutions, etc. on corporate laws including Companies Act. He has received few queries from his clients, please assist Mr. Y in answering them.<\/mark><\/strong><\/p>\n\n\n\n<p><strong> a) BDl bank wants to offer DP services. Whom should they approach for registering as DP<\/strong> <strong>?<br>Answer:<\/strong> BDI Bank should approach to SEBI for registering as DP.<\/p>\n\n\n\n<p><strong>b) KM Financial wants to offer Debenture Trustee services. Where should they apply for getting registered?<b><br><\/b><\/strong><b>Answer:<\/b> KM Financial which wants to offer Debenture Trustee services should apply to SEBI for getting registered.<\/p>\n\n\n\n<p><strong>c) TT Ltd. Co. wants to issue an IPO. Should it get itself registered with SEBI?<br>Answer:<\/strong> Yes, TT Ltd. Co. who wants to issue an IPO should get itself registered with SEBI.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-vivid-purple-color\">2) Mr. P has recently got his B.Sc. degree. He has enrolled for a course in securities market. As a new student of this subject, he has few queries as follows :<\/span><\/strong><\/p>\n\n\n\n<p><strong>a) Does a Company need to be listed on a stock exchange to sell its securities through the stock exchange.<br>Answer:<\/strong>Yes, a Company need to be listed on a stock exchange to sell its securities through the stock exchange.<\/p>\n\n\n\n<p><strong><span class=\"has-inline-color has-black-color\">b) What is the term used for referring to a stock exchange\u2019s ability to reflect the economic<\/span> conditions of a country?  <span class=\"has-inline-color has-black-color\"><br><\/span>Answer:<\/strong> The term Economic Barometer used for referring to a stock exchange\u2019s ability to reflect the economic conditions of a country.<\/p>\n\n\n\n<p><strong>c) What is the term which refers to the functions of stock exchange as a provider of ready market for sale and purchase of security?<br>Answer:<\/strong> The term Liquidity refers to the functions of stock exchange as a provider of ready market for sale and purchase of security.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Balbharti Textbook Solutions for other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions\/\">Solution of all Chapters of SP<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-chapter-1\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-chapter-1\/\" target=\"_blank\" rel=\"noreferrer noopener\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions-chapter-2\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions-chapter-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-3-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-3-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-4-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-4-exercise\/\" target=\"_blank\" rel=\"noreferrer noopener\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-5-exercise-deposits\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-5-exercise-deposits\/\" target=\"_blank\" rel=\"noreferrer noopener\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-6-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-6-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-7-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-7-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-8-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-8-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-9-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-9-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">9<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-10-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-10-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">10<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-11-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-11-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">11<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">12<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q4_Distinguish_between_the_following\"><\/span>Q.4 Distinguish between the following.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>1) Jobber and Broker.<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Points<\/strong><\/td><td><strong><strong><strong><strong>Jobber<\/strong><\/strong><\/strong><\/strong><\/td><td><strong><strong><strong><strong>Broker<\/strong><\/strong><\/strong><\/strong><\/td><\/tr><tr><td>1) Meaning<\/td><td>Jobber is one who buys and sells securities in his own name.<\/td><td>Broker is an agent who deals in buying and selling of securities on<br>behalf of his client.<\/td><\/tr><tr><td>2) Nature of Trading<\/td><td>A jobber carries out trading<br>activities only with the broker.<\/td><td>A broker carries out trading<br>activities with the jobber on behalf of his investors.<\/td><\/tr><tr><td>3) Restrictions on Dealings<\/td><td>A jobber is prohibited to directly<br>buy or sell securities in the stock<br>exchange. Also, he cannot directly<br>deal with the investors.<\/td><td>A broker acts as a link between the jobber and the investors. He trades i.e. buys and sells securities on behalf of its investors.<\/td><\/tr><tr><td>4) Agent<\/td><td>A jobber is a special mercantile<br>agent.<\/td><td>A broker is a general mercantile<br>agent.<\/td><\/tr><tr><td>5) Form of Consideration<\/td><td>A jobber gets consideration in the<br>form of profit.<\/td><td>A broker gets consideration in the<br>form of commission or brokerage.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q5_Answer_in_brief\"><\/span>Q.5 Answer in brief.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">1) State the functions of SEBI.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>The Securities and Exchange Board of India (SEBI) is the regulator of the capital markets in India. The SEBI was established in 1992 under the Securities and Exchange Board of India Act, 1992 It has its headquarters in Mumbai and has many regional and local offices all over India.<\/p>\n\n\n\n<p><strong>Functions of SEBI <\/strong><\/p>\n\n\n\n<p>SEBI was set up with the objective of promoting the securities market, protecting the interest of the investors in securities market and to regulate the securities market. SEBI issues rules and regulations to be followed by the issuers of securities, the market intermediaries and the investors. It is a regulator of all the Stock exchanges in India.<\/p>\n\n\n\n<p>The various functions of SEBI are &#8211;<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>To protect the interest of investors in securities market.<\/li>\n\n\n\n<li>To promote the development of securities markets.<\/li>\n\n\n\n<li>To regulate the business in stock exchanges and any other securities market.<\/li>\n\n\n\n<li>To register and regulate the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustee of trust deeds, registrars to an issue, merchants bankers, underwriters, and such other intermediaries who may be associated with securities market.<\/li>\n\n\n\n<li>To register and regulate the working of the Depositories, Depository Participants, Custodians of securities, foreign institutional investors, credit rating agencies.<\/li>\n\n\n\n<li>To register and regulate the working of venture capital funds and collective investment schemes including mutual funds.<\/li>\n\n\n\n<li>To promote and regulate self-regulatory organizations.<\/li>\n\n\n\n<li>To prohibit fraudulent and unfair trade practice relating to securities markets.<\/li>\n\n\n\n<li>To promote investors\u2019 education and training of intermediaries of securities market.<\/li>\n\n\n\n<li>To prohibit insider trading in securities.<\/li>\n<\/ol>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>2. State any four features of Stock Exchange.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> A stock exchange is a specific place where various types of securities are purchased and sold. The term securities include equity shares, preference shares, debentures, government securities and bonds, etc. including units of Mutual Funds.<\/p>\n\n\n\n<p><strong>Features of Stock Exchange<\/strong> <\/p>\n\n\n\n<p><strong>1) Market for Securities:<\/strong><\/p>\n\n\n\n<p>Stock exchange is a place where all types of corporate securities as well as securities of government and semi-government bodies are traded.<\/p>\n\n\n\n<p><strong>2) Second Hand Securities:<\/strong><\/p>\n\n\n\n<p>Securities traded in Stock exchange are those securities which are already issued by the companies. In other words, second hand securities are bought and sold among investors in a stock exchange.<\/p>\n\n\n\n<p><strong>3) Listed Securities:<\/strong><\/p>\n\n\n\n<p>Only securities that are listed with the stock exchange can be traded on a stock exchange. Listing of securities helps in protecting the interest of investors as companies have to strictly comply with the rules laid down by the stock exchange.<\/p>\n\n\n\n<p><strong>4) Organised and Regulated Market:<\/strong><\/p>\n\n\n\n<p>All Listed Companies have to comply with the guidelines of SEBI. Companies will also have to function as per the rules and regulations laid down by the Stock exchange.<\/p>\n\n\n\n<p><strong>5) Specific Location:<\/strong><\/p>\n\n\n\n<p>Stock exchange is a specific physical place where securities are traded. It is a market place where brokers and intermediaries meet to conduct dealings in securities. Today, all trading is done electronically on a stock exchange.<\/p>\n\n\n\n<p><strong>6) Trading only through Members:<\/strong><\/p>\n\n\n\n<p>Securities in a Stock exchange can be traded only by the members of the exchange on their own behalf or through authorised brokers.<\/p>\n\n\n\n<p class=\"has-text-align-center\"><strong><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" target=\"_blank\" rel=\"noreferrer noopener\">Balbharti Textbook Solutions for other subjects<\/a><br><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions\/\">Solution of all Chapters of SP<br><\/a> <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-chapter-1\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-chapter-1\/\" target=\"_blank\" rel=\"noreferrer noopener\">1<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions-chapter-2\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions-chapter-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">2<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-3-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-3-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">3<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-4-exercise\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-4-exercise\/\" target=\"_blank\" rel=\"noreferrer noopener\">4<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-5-exercise-deposits\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-5-exercise-deposits\/\" target=\"_blank\" rel=\"noreferrer noopener\">5<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-6-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-6-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">6<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-7-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-7-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">7<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-8-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-8-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">8<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-9-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-9-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">9<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-10-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-10-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">10<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-11-solution\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-11-solution\/\" target=\"_blank\" rel=\"noreferrer noopener\">11<\/a> &#8211; <a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/\" data-type=\"URL\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/\" target=\"_blank\" rel=\"noreferrer noopener\">12<\/a><\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q6_Justify_the_following_statements\"><\/span>Q.6 Justify the following statements.<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong><br>a) The Securities and Exchange Board of India (SEBI) is the regulator of the capital markets in India.The SEBI was established in 1992 under the Securities and Exchange Board of India Act, 1992.<br>b) SEBI was set up with the objective of promoting the securities market, protecting the interest of the investors in securities market and to regulate the securities market.<br>c) SEBI issues rules and regulations to be followed by the issuers of securities, the market intermediaries and the investors. It is a regulator of all the Stock exchanges in India.<\/p>\n\n\n\n<p>d) SEBI also regulate the working of venture capital funds and collective investment schemes including mutual funds.<br>e) Thus, the Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.<\/p>\n\n\n\n<p><strong><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\">2) Stock exchanges work for the growth of the Indian economy.<\/mark><\/strong><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>a) Stock markets are organised and regulated market which protects the interests of the investors.<br>b) In stock exchange, securities of various companies are bought and sold.<br>c) Investors invest in companies which give good return on investments.<br>d) Hence companies, too, try to invest in most productive investment projects.<br>e) This leads to capital formation as well as economic growth.<br>f) Hence, Stock exchanges work for the growth of the Indian economy.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center has-cyan-bluish-gray-background-color has-background\"><span class=\"ez-toc-section\" id=\"Q7_Answer_the_following\"><\/span>Q.7 Answer the following<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-vivid-purple-color\"><strong>1) Explain the functions of Stock Exchange.<\/strong><\/mark><\/p>\n\n\n\n<p><strong>Answer:<\/strong> <br>According to the Securities Contracts (Regulation) Act 1956, the term stock exchange is defined as, \u201cAn association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling of business in buying, selling and dealing in securities.\u201d<\/p>\n\n\n\n<p><strong>Functions of Stock Exchange<\/strong><\/p>\n\n\n\n<p><strong>1) Mobilisation of Savings:<\/strong><\/p>\n\n\n\n<p>Stock markets are organised and regulated market which protects the interests of the investors. This encourages small and big investors to invest in securities through the stock exchange. It thus provides a ready market for buying and selling securities.<\/p>\n\n\n\n<p><strong>2) Capital formation:<\/strong><\/p>\n\n\n\n<p>Investors in securities are attracted due to good returns on investments and capital appreciation. This attracts more investors to invest through the stock exchange. Corporates too can easily raise funds by offering various types of securities to meet the needs of different types of investors. Thus Stock exchange serves as a tool for capital formation.<\/p>\n\n\n\n<p><strong>3) Pricing of Securities:<\/strong><\/p>\n\n\n\n<p>The stock market helps to value the securities on the basis of demand and supply factors. The securities of profitable and growth-oriented companies are valued higher as there is more demand for such securities. The valuation of securities is useful for investors, government, and creditors. The investors can know the market value of their investment. The creditors can estimate the creditworthiness of a company.<\/p>\n\n\n\n<p><strong>4) Economic Barometer:<\/strong><\/p>\n\n\n\n<p>A stock exchange is a reliable barometer to measure the economic condition of a country. Every major change in country and economy is reflected in the prices of shares. The rise or fall in the share prices indicates the boom or recession cycle of the economy. Stock exchange is also known as a pulse of economy or economic mirror as it reflects the economic conditions of a country.<\/p>\n\n\n\n<p><strong>5) Protecting Interest of Investors:<\/strong><\/p>\n\n\n\n<p>Stock exchange protects the interest of investors. In stock market only the listed securities are traded. Stock exchange allows listing only after verifying the soundness of company. The companies which are listed have to operate within the strict rules and regulations laid down by the stock exchange. This ensures safety of dealing through stock exchange.<\/p>\n\n\n\n<p><strong>6) Liquidity:<\/strong><\/p>\n\n\n\n<p>The main function of stock market is to provide ready market for sale and purchase of securities. The presence of stock market gives assurance to investors that their investment can be converted into cash whenever they want. The investors can invest in long term investment projects without any hesitation, as because of stock exchange they can convert long term investment into short term and medium term or even liquidate their investments whenever they want.<\/p>\n\n\n\n<p><strong>7) Better Allocation of Capital:<\/strong><\/p>\n\n\n\n<p>The shares of profit making companies are quoted at higher prices and are actively traded so such companies can easily raise fresh capital from stock market. The prices of securities traded in the exchange indicate the opportunities for investments. So stock exchange facilitates allocation of investors fund to productive and profitable channels.<\/p>\n\n\n\n<p><strong>8) Contributes to Economic Growth:<\/strong><\/p>\n\n\n\n<p>In stock exchange, securities of various companies are bought and sold. Investors invest in companies that give good returns on investments. Hence, companies, too, try to invest in most productive investment projects. This leads to capital formation as well as economic growth.<\/p>\n\n\n\n<p><strong>9) Providing Scope for Speculation:<\/strong><\/p>\n\n\n\n<p>To ensure liquidity and demand or supply of securities the stock exchange permits healthy speculation of securities.<\/p>\n\n\n\n<p><strong>10) Promotes the Habit of Savings and Investment:<\/strong><\/p>\n\n\n\n<p>The stock market offers attractive opportunities for investment in various securities. These attractive opportunities encourage people to save more and invest in securities of the corporate sector rather than investing in unproductive assets such as gold, silver,<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"12th_Commerce_SP_Textbook_Solution\"><\/span>12th Commerce SP Textbook Solution<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><strong>Chapter Name <\/strong><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-chapter-1\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-chapter-1\/\">1) Introduction to Corporate Finance<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions-chapter-2\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-sp-textbook-solutions-chapter-2\/\">2) Sources of Corporate Finance<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-3-solutions\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-3-solutions\/\">3) Issue of Shares<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-4-exercise\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-4-exercise\/\">4) Issue of Debentures<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-5-exercise-deposits\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-5-exercise-deposits\/\">5) Deposits<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-6-solution\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-6-solution\/\">6) Correspondence with Members<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-7-solution\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-7-solution\/\">7) Correspondence with Debentureholders<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-8-solution\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-8-solution\/\">8) Correspondence with Depositors<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-9-solution\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-9-solution\/\">9) Depository System<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-10-solution\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-10-solution\/\">10) Dividend Interest<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-11-solution\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-11-solution\/\">11) Financial Market<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-sp-chapter-12-solutions\/\">12) Stock Exchange<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-align-center\"><span class=\"ez-toc-section\" id=\"Check_out_other_posts_related_to_12th_Commerce\"><\/span>Check out other posts related to 12th Commerce<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/www.youtube.com\/@Scholarszilla\" data-type=\"link\" data-id=\"https:\/\/www.youtube.com\/@Scholarszilla\" target=\"_blank\" rel=\"noopener\">12th Commerce Video Lectures<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-notes\/\">Textbook Solutions of 12th Commerce (All Subjects)<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/ebalbharti-12th-books-pdf\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/ebalbharti-12th-books-pdf\/\"> Free PDF of 12th Commerce Textbooks <\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-it-online-exam\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-it-online-exam\/\">12th Commerce IT MCQ Preparation (Online Test)<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/new-paper-pattern-of-12th-commerce\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/new-paper-pattern-of-12th-commerce\/\"> Free PDF of 12th Commerce Textbooks <\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/sample-question-paper-for-12th-commerce\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/sample-question-paper-for-12th-commerce\/\">Sample Paper of 12th Commerce for Practice PDF<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-navneet-practice-papers-pdf\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/12th-commerce-navneet-practice-papers-pdf\/\">PDF of Solved Sample papers of 12th Commerce to improve Paper Presentation<\/a><\/td><\/tr><tr><td class=\"has-text-align-center\" data-align=\"center\"><a href=\"https:\/\/scholarsclasses.com\/blog\/hsc-previous-year-question-paper\/\" data-type=\"link\" data-id=\"https:\/\/scholarsclasses.com\/blog\/hsc-previous-year-question-paper\/\">Old Question Papers of 12th Commerce with solution (All Subjects)<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><br><br><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":10202,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[5],"tags":[3490],"class_list":["post-10195","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-hsc-maharashtra-board","tag-12th-sp-chapter-12-solutions"],"_links":{"self":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/10195","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/comments?post=10195"}],"version-history":[{"count":19,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/10195\/revisions"}],"predecessor-version":[{"id":39685,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/posts\/10195\/revisions\/39685"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media\/10202"}],"wp:attachment":[{"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/media?parent=10195"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/categories?post=10195"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/scholarsclasses.com\/blog\/wp-json\/wp\/v2\/tags?post=10195"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}