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Astrick Ltd… (Class 12 Business Studies SQP 2026-27, Q32)

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Business StudiesCBSE Class 12 · Sample paper, session 2026-27 · 6 marks · Long answer

CBSE Class 12 Business Studies sample paper 2026-27: question 32

From the official CBSE sample question paper for 2026-27, section A, question 32, for 6 marks. Try it first; the hints and our step-by-step solution are below.

Q32 · 6 marks · Long answerCompetency-basedFinancial Markets

Astrick Ltd., a fast-growing FMCG company, decided to expand its operations by setting up a new manufacturing unit. To raise funds, the company issued shares to the public. After the issue, the company participated in a market which provided a platform for buying and selling of existing securities.

Soon, Astrick Ltd. noticed that the market price of its shares was constantly changing based on the company's performance reports, economic conditions, and demand and supply. Investors felt confident because its dealings were well defined according to the existing legal framework. It also ensured that they could easily convert their investment into cash whenever needed and the savings of the investors could get channelised into the most productive investment opportunities.

  1. (a)

    Name and give a suitable definition of the institution which as a market provides the platform referred to in the above case.

    2 marks
  2. (b)

    Explain the functions of the institution identified in part a) discussed in the case.

    4 marks

Source: official sample paper from cbseacademic.nic.in (PDF). See it in the full Sample paper 2026-27.

Hints

Open one hint at a time and try again before the next.

Hint 1

Where are existing securities bought and sold?

Hint 2

Match each line of the case with a function.

Step-by-step solution

Each step shows the marks it earns, as an examiner would award them. Checked by an independent re-solve from the question paper.

  1. (a) The institution is the Stock Exchange.

    1 mark

  2. Under the Securities Contracts (Regulation) Act, 1956, a stock exchange is any body of individuals, incorporated or not, constituted to assist, regulate or control the business of buying, selling or dealing in securities.

    1 mark

  3. (b) Liquidity and marketability: A continuous market lets investors convert investments into cash whenever needed.

    1 mark

  4. Pricing of securities: Prices are set by demand and supply, reflecting company performance and economic conditions.

    1 mark

  5. Safety of transactions: Dealings are well defined under the legal framework, giving investors a safe and fair deal.

    1 mark

  6. Contributes to economic growth: Disinvestment and reinvestment channel savings into the most productive investments.

    1 mark

Answer: (a) Stock Exchange (defined under the SCRA, 1956). (b) Liquidity and marketability, pricing of securities, safety of transactions, contribution to economic growth.

Where the marks are

  • (a) 1 naming + 1 definition
  • (b) Four functions: ½ heading + ½ explanation each

Revise the chapter

Practise this chapterBoard-style questions from Financial Markets, one at a time, marked against the answer key and marking points.Back to the full paperSample paper 2026-27: every question, by section.

The question is transcribed from the official paper; figures are described in words. The solution, hints and chapter tag are ours. Spotted an error? Write tosupport@questionbuddy.in.