CHAPTER 19
Capital Market Efficiency and Capital Markets in India
LEARNING OBJECTIVES
- Explain the concept of the capital market efficiency.
- Discuss the features of perfect capital market.
- Understand the role of merchant bankers and mutual funds.
- Highlight the developments in the stock markets (secondary market) and the new issue market (primary market) in India.
INTRODUCTION
Companies raise long-term funds in the forms of equity and debt from the capital markets. Finance managers should, therefore, know the ways in which securities are traded and priced in the capital markets. They should also know the procedures followed in issuing securities. Securities will be fairly priced in the capital markets if they are efficient. In this chapter, ...
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