Last Updated on February 21, 2025 by sanjjeett
Hello students, we are providing notes for ICSE class 10 commercial studies. The resources for ICSE Commercial Studies are very less. So, to help icse board students we have created chapterwise notes for class 10 commercial studies. In this article, you will find notes for ICSE Class 10 Commercial Studies Chapter 12 Capital Market. It is a part of Notes for ICSE Class 10 Commercial Studies series.
| Chapter | Capital Market |
| Type of Material | Notes |
| Board | ICSE |
| Class | 10 |
| Subject | Commercial Studies |
| Unit | Unit 3 Finance and Accounting |
| Useful for | Class 10 Studying Students |
| Notes provided | Yes |
| Important Link | ICSE Class 10 Commercial Studies Chapterwise Notes |
Notes on Capital Market for ICSE Class 10 Commercial Studies
Capital market
The capital market refers to the financial marketplace where long-term debt and equity-backed securities are bought and sold. It encompasses a wide range of financial instruments, including stocks, bonds, derivatives, and other investment products. The primary function of the capital market is to facilitate the transfer of capital from investors (such as individuals, institutions, and governments) who have excess funds to entities (such as corporations and governments) in need of capital for long-term investment projects or operations. Capital markets play a crucial role in mobilizing savings, allocating resources efficiently, facilitating economic growth, and providing liquidity and investment opportunities for participants. Examples of capital market institutions include stock exchanges, bond markets, and financial intermediaries like investment banks and brokerage firms.
Functions of Capital market
The capital market functions are:
- Facilitating Capital Formation: The primary function of the capital market is to facilitate the transfer of funds from investors to entities in need of capital. This process allows businesses and governments to raise long-term funds for investment in projects, expansion, or operations.
- Allocation of Resources: Capital markets allocate resources by directing funds to the most productive and efficient uses. Investors allocate their capital to investments they believe will generate the highest returns, thus directing funding to businesses with growth potential and projects with positive economic impact.
- Providing Liquidity: Capital markets provide liquidity by allowing investors to buy and sell financial assets easily. This liquidity encourages investment and enables investors to adjust their portfolios according to changing market conditions or investment objectives.
- Price Discovery: Capital markets facilitate price discovery by providing a platform where buyers and sellers can negotiate the prices of financial assets based on supply and demand dynamics, market sentiment, and fundamental factors. This price discovery mechanism ensures that financial assets are priced efficiently.
- Risk Sharing: Capital markets enable risk sharing by allowing investors to diversify their portfolios across different assets and investment vehicles. This diversification helps spread risk and reduces the impact of adverse events on individual investments.
- Facilitating Economic Growth: By providing businesses with access to long-term capital, capital markets support economic growth and development. Investments in productive assets, infrastructure, innovation, and technology contribute to increased productivity, job creation, and overall economic prosperity.
- Corporate Governance: Capital markets promote transparency and accountability in corporate governance by imposing disclosure requirements and providing mechanisms for shareholders to monitor and influence corporate decision-making. This helps ensure that companies operate in the best interests of shareholders and stakeholders.
Overall, the capital market plays a vital role in the functioning of the economy by facilitating efficient allocation of resources, promoting investment, and fostering economic growth and development.
Also check
- Sources of Raising Capital Notes for ICSE Class 10 Commercial Studies Chapter 13
- Capital Market Notes for ICSE Class 10 Commercial Studies Chapter 12
- Budgeting Notes for ICSE Class 10 Commercial Studies Chapter 11
- Costs Notes for ICSE Class 10 Commercial Studies Chapter 10
- Final accounts of Sole Proprietorship Notes for ICSE Class 10 Commercial Studies Chapter 9
- Capital and Revenue Notes for ICSE Class 10 Commercial Studies Chapter 8
- E-commerce Notes for ICSE Class 10 Commercial Studies Chapter 7
- Consumer Protection Notes for ICSE Class 10 Commercial Studies Chapter 6
- Advertising and Sales promotion Notes for ICSE Class 10 Commercial Studies Chapter 5
- Pricing Notes for ICSE Class 10 Commercial Studies Chapter 4
- ICSE Class 10 Commercial Studies Notes
- Product and Service Notes for ICSE Class 10 Commercial Studies Chapter 3
- Marketing Notes for ICSE Class 10 Commercial Studies Chapter 2
- Stakeholders in Commercial Organisations Notes for ICSE Class 10 Commercial Studies Chapter 1
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Topics covered in ICSE Class 10 Commercial Studies Chapter 12 Capital Market
| 12.1 | Meaning of Capital Market |
| 12.2 | Functions of Capital Market |
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Frequently Asked Questions (FAQs) on Commercial Studies Notes for ICSE Class 10
Q1: How should I use the notes to study for ICSE Class 10 Commercial Studies?
A1: To effectively use the notes:
Review Regularly: Regularly review your notes to reinforce your understanding of key concepts.
Highlight Key Points: Identify and highlight important terms, definitions, and concepts.
Practice Questions: Use your notes to answer practice questions and solve sample problems.
Summarize: Summarize lengthy sections into concise points for easier recall.
Q2: How can I effectively take notes for ICSE Class 10 Commercial Studies?
A2: To take effective notes:
Organize Information: Use headings, bullet points, and subheadings to structure your notes clearly.
Be Concise: Write key points and summaries instead of copying text verbatim.
Q3: Are there any recommended textbooks or resources for ICSE Class 10 Commercial Studies?
A3: Recommended resources include:
ICSE Textbooks: Refer to textbooks prescribed by the ICSE board for comprehensive coverage.
Reference Books: Books such as “Commercial Studies for Class 10” by various educational publishers.
Online Resources: Educational websites and online study platforms that offer summaries, sample papers, and additional notes.
