Capital And Securities Market

Capital markets are financial markets where long-term securities, such as stocks and bonds, are traded. They provide a platform for raising capital for businesses and governments. On the other hand, Money markets are financial markets where short-term securities such as T-Bill, C-Paper, Cash Management Bills, Ways and Means advances, etc are traded. * **Statement 1 is correct-** Government bonds are long-term debt securities issued by governments to finance their activities. The government bond market is a part of the capital market as it involves the trading of long-term debt securities. * **Statement 2 is incorrect-** The call money market is a short-term market where funds are borrowed and lent for very short durations, usually overnight. It deals with short-term funds, and its transactions are not classified as part of the capital market. * **Statement 3 is incorrect-** Treasury bills are short-term debt instruments issued by governments to finance their short-term cash flow requirements. The treasury bill market, similar to the call money market, deals with short-term instruments and is not considered part of the capital market. * **Statement 4 is correct**\- The stock market, also known as the equity market or share market, is where shares or stocks of publicly listed companies are bought and sold. The stock market is a part of the capital market as it involves the trading of ownership interests (equity securities) in companies.

* The beta value of a stock measures how much its price moves compared to the overall market: * Beta > 1: Stock is more volatile than the market (moves more). * Beta < 1: Stock is less volatile than the market (moves less). * Beta = 1: Stock moves in line with the market.

India has seen a massive rise in equity options trading and stock market capitalization, but investor protection is actively overseen by SEBI. ✅ **Statement I: Correct** India **leads globally** in equity options trading volume, reflecting a major boom in the derivatives market. ✅ **Statement II: Correct** In **early 2024**, India's stock market **temporarily overtook Hong Kong’s**, becoming the **4th largest** by market cap. ❌ **Statement III: Incorrect** India **has a regulatory body—SEBI**—which issues **warnings** and acts against **unregistered advisors**.