Financial Market Class 12 Notes PDF Download: Imagine a world without financial markets where businesses struggle to raise funds, individuals have no structured way to invest, and the economy moves at a sluggish pace. Sounds chaotic, right? Financial markets play a vital role in ensuring smooth transactions between savers and investors. They help allocate resources efficiently, contributing to the overall economic growth of a country.
In this article, we will dive deep into the key concepts of financial markets, explore their components, understand their significance, and provide well-organized notes to help you ace your Class 12 Business Studies exam.
Key Concepts of Chapter 10: Financial Market – Business Studies Class 12
A Financial Market is a platform where financial assets such as stocks, bonds, derivatives, and currencies are bought and sold. It serves as a bridge between those who need funds (borrowers) and those who have surplus funds (investors).
1. Types of Financial Markets
- Money Market: Deals with short-term funds (less than one year). Instruments include Treasury Bills, Commercial Papers, and Certificates of Deposit.
- Capital Market: Deals with long-term securities. It includes:
- Primary Market: Where new securities are issued (e.g., IPOs).
- Secondary Market: Where already issued securities are traded (e.g., Stock Exchanges).
2. Stock Exchange & Its Role
- Provides liquidity and marketability to securities.
- Ensures price transparency and fair trading practices.
- Helps in economic development by enabling capital formation.
3. Regulatory Framework
- SEBI (Securities and Exchange Board of India) regulates the stock market and protects investor interests.
- RBI (Reserve Bank of India) oversees the money market.
4. Functions of Financial Markets
- Mobilizing savings and channelizing them into productive investments.
- Price determination of financial assets.
- Providing liquidity to investors.
- Reducing transaction costs by offering a common platform for buyers and sellers.
Preview of Chapter 10: Financial Market – Business Studies Class 12 Handwritten Notes PDF
To make studying easier, we have compiled well-structured handwritten notes covering all key topics of Chapter 10: Financial Market. These notes include definitions, diagrams, flowcharts, and bullet points for quick revision.
To help you decide before downloading, here is a brief preview of the notes:
📌 Click Here to Download the Notes PDF
Related Notes: Class 12 Business Studies Notes: FREE Notes Chapter 1 to 12
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Important Formulas From This Chapter
Although financial markets focus more on concepts than formulas, here are some important calculations you should know:
- Market Capitalization = Share Price × Number of Shares Outstanding
- P/E Ratio (Price-to-Earnings) = Market Price per Share / Earnings per Share
- Dividend Yield = (Dividend per Share / Market Price per Share) × 100
Real-Life Examples of Chapter 10: Financial Market – Business Studies Class 12
1️⃣ Stock Market Boom & Crash: In 2020, due to the COVID-19 pandemic, stock markets worldwide saw a major crash, followed by a historic recovery as investors regained confidence.
2️⃣ Money Market in Action: Companies like TCS and Infosys issue Commercial Papers to raise short-term funds at lower interest rates instead of taking bank loans.
3️⃣ Regulations Protecting Investors: SEBI has penalized companies involved in insider trading, ensuring fair practices in stock exchanges.
Conclusion
Financial markets are the backbone of any economy. They facilitate capital formation, promote economic growth, and ensure liquidity in the system. Understanding their concepts will not only help you score well in your exams but also prepare you for smart investment decisions in the future!
FAQs: Financial Market Class 12 Notes PDF Download
Q1: What is the difference between the primary and secondary market?
➡ The primary market deals with new securities (e.g., IPOs), whereas the secondary market allows trading of already issued securities (e.g., NSE & BSE).
Q2: How does SEBI regulate the stock market?
➡ SEBI ensures fair trading, prevents malpractices, and protects investors by setting guidelines for stock exchanges and listed companies.
Q3: What are the key instruments of the money market?
➡ Treasury Bills, Commercial Papers, Certificates of Deposit, and Call Money.
Q4: Why is the financial market important?
➡ It mobilizes savings, facilitates investment, determines asset prices, and ensures liquidity in the economy.
Q5: How can students benefit from learning about financial markets?
➡ It helps in making informed investment decisions, understanding economic news, and pursuing careers in finance and business.
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