Stock-a-thon Quiz (25 Marks)

The EPS of a company should be increasing or decreasing?

• Increasing

• Decreasing

Which of the following financial ratios is primarily used to assess a company's liquidity?

• Price-to-Earnings (P/E) Ratio

• Debt-to-Equity (D/E) Ratio

• Current Ratio

• Return on Equity (ROE)

Which of the following statements about the Dividend Payout Ratio is true?

• It measures the proportion of earnings reinvested in the business.

• It indicates the company's ability to cover its debt obligations.

• It shows the proportion of earnings distributed to shareholders as dividends.

• It compares the market value of a company to its book value.

Assertion (A): A high Gross Profit Margin is always a sign of a company's operational efficiency. Reason (R): Gross Profit Margin measures the percentage of revenue that exceeds the cost of goods sold (COGS).

• Both A and R are true, and R is the correct explanation of A.

• Both A and R are true, but R is not the correct explanation of A.

• A is true, but R is false.

• A is false, but R is true.

Assertion (A): A high Price-to-Book (P/B) ratio indicates that a company is overvalued. Reason (R): The Price-to-Book ratio compares a company's market value to its book value, reflecting what investors are willing to pay for each dollar of net assets.

• Both A and R are true, and R is the correct explanation of A.

• Both A and R are true, but R is not the correct explanation of A.

• A is true, but R is false.

• A is false, but R is true.

Which was the first stock exchange established in India?

• a) Bombay Stock Exchange (BSE)

• National Stock Exchange (NSE)

• Calcutta Stock Exchange (CSE)

• d) Madras Stock Exchange (MSE)

In which year was the Securities and Exchange Board of India (SEBI) established?

• a) 1988

• b) 1992

• c) 1995

• d) 2000

True or False: The process of trading stocks involves the following key steps: placing an order with a broker, order execution on the stock exchange, confirmation of the trade, and final settlement of funds and securities.

• TRUE

• FALSE

What is the main difference between fixed income instruments and equity?

• a) Fixed income has higher returns

• b) Equity is less risky

• c) Fixed income provides guaranteed returns, whereas equity does not

• d) Equity is guaranteed by the government

What does CAGR stand for?

• a) Compounded Annual Growth Rate

• b) Continuous Annual Growth Rate

• c) Combined Annual Growth Rate

• d) Calculated Annual Growth Rate