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Business Studies · 2026 · 3 marks
CBSE 2026 · Region 5 · Set 2 · Q24
State any three points of differences between ‘Primary Market’ and‘Secondary Market’.State any three objectives of Securities and Exchange Board ofIndia.
State any three points of differences between ‘Primary Market’ and
‘Secondary Market’.
State any three objectives of Securities and Exchange Board of
India.
Marking-scheme solution
Difference between ‘Primary Market’ and ‘Secondary Market’:
(i)
PRIMARY MARKET SECONDARY MARKET
Primary market deals with Secondary market deals with sale and
(ii)
issue of new securities. purchase of existing securities only.
The company sells securities The ownership of existing securities is
either directly to the investors exchanged between investors without
(iii)
or through an intermediary involvement of company.
It promotes capital formation It promotes capital formation indirectly
directly as funds flow directly by enhancing encashability (liquidity).
(iv)
from savers to investors.
Only buying of securities takes Both buying and selling of securities
(v)
place in the primary market. takes place in the secondary market.
Price is determined by the Price is determined by demand and
management of company. supply of the securities.
(vi)
There is no fixed geographical It is located at a specified place.
location.
Q. (b) State any three objectives of Securities and Exchange Board of
India.
Objectives of Securities and Exchange Board of India:
(i)
To regulate stock exchanges and the securities industry to promote
their orderly functioning.
(ii)
To protect the rights and interests of investors, particularly individual
investors and to guide and educate them.
(iii)
To prevent trading malpractices and achieve a balance between self-
regulation and statutory regulation.
(iv)
To regulate and develop a code of conduct and fair practices by
intermediaries like brokers, merchant bankers etc., with a view to
making them competitive and professional.
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CBSE Class 12 Business Studies past-paper question from the 2026board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.