Round 3

Stock Market is a place where:

• investors and companies meet

• stock buyers and sellers meet

• stock buyers and sellers meet

• none of the above

The Indian Stock Market is regulated by:

• Reserve bank of India (RBI)

• Government of India (GOI)

• Security Exchange Board of India (SEBI)

• National Stock Exchange (NSE)

In India, mergers and acquisition of firms are regulated by

• National Manufacturing Competitiveness Council

• Competition Commission of India

• Security and Exchange Board of India

• Department of Industrial Policy and Promotion

Consider the following statements:

1. Sensex is based on 50 of the most important stocks available on the Bombay Stock Exchange(BSE)

2. For calculating the Sensex, all the Sensex stocks are assigned proportional weightage

3. Sensex became operational in 1978-79 with the base value of 100

Which of the statements given above is/are correct?

• 2 only

• 1 and 3

• 2 and 3

• None of the above

In India, mergers and acquisition of firms are regulated by

• National Manufacturing Competitiveness Council

• Competition Commission of India

• Security and Exchange Board of India

• Department of Industrial Policy and Promotion

Department of Industrial Policy and Promotion

• Owners

• Creditors

• Debtors

• Directors

why a retail investor is recommended to invest through a mutual fund in a stock exchange?

1. Mutual funds invest funds in a diversified portfolio of securities, thus reducing the risk of the investor

2. Mutual funds are managed by financial experts

3. Mutual funds promise high returns to the investors of the fund

Select the correct answer using the codes given below:

• 3 only

• 2 and 3 only

• 1 and 2 only

• 1, 2 and 3

The preliminary prospectus, which has a statement on its cover that the registration statement has not yet become effective, is referred to as a (an)

• red herring

• registration statement

• underwriting syndicate

• standby agreement

A market for existing (used) securities, such as the NYSE or AMEX, rather than new issues is known as the __________ market.

• primary

• secondary

• tertiary

• capital

With reference to money markets, consider the following statements:

1. Call money refers to borrowing/lending of funds on overnight basis.

2. Notice money refers to borrowing/lending of funds for a period exceeding 14 days

Which of the statements given above is/are correct

• 1 only

• 2 only

• Both 1 and 2

• Neither 1 and 2