Q001

What is the primary function of a stock exchange?

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What is the primary function of the Central Depository in a country's financial market?

• a) Facilitating the issuance of new securities

• b) Regulating stock exchanges

• c) Holding securities in electronic form and facilitating their transfer

• d) Providing loans to investors

NSCCL becomes the legal counterparty to the net settlement obligations of every member. This principle is called ______.

• 'Gross settlement’

• ‘settlement fulfillment’

• ‘obligation guarantee’

• ‘novation'

At the end of the trade cycle, the trades are _______ to determine the obligations of the trading members to deliver securities/funds as per the settlement schedule.

• Grossed

• Aggregated

• Netted

• Offset

NIFTY and SENSEX are calculated based on ____________.

• Authorised share capital

• Free-Float capitalisation

• Market capitalisation

• Paid-up capital

a/an ___________ stock is the stock of a large, well established and financially sound company that has operated for many years.

• Defensive

• PSU

• Penny

• Blue-chip

The first computerised stock exchange in India : ________.

• Bombay Stock Exchange (BSE)

• Multi Commodity Exchange (MCX)

• National Stock Exchange (NSE)

• Over-the-Counter Exchange of India (OCTEI)

An index option is a ____

• Debt Instrument

• Derivative Product

• Cash Market Product

• Money Market Instrument

The purchase of a share in one market and the simultaneous sale in a different market to benefit from price differentials is known as ____________.

• Mortgage

• Hedging

• Arbitrage

• Speculation

Margins in 'Futures' trading are to be paid by _______.

• Only the buyer

• Only the seller

• Both the buyer and the seller

• The clearing corporation