Stock-a-thon Quiz

Why should one invest?

• To earn a regular income

• To ensure financial growth and beat inflation

• To avoid taxes

• To have liquid cash available

What is the primary role of SEBI?

• To regulate the banking sector

• To control the insurance industry

• To regulate the securities market in India

• To manage public sector enterprises

Which financial intermediary acts as a vault for shares that you buy?

• Stock Brokers

• Asset Management Companies

• Depositories

• Credit Rating Agencies

What happens when a company goes public?

• a) It sells shares to private investors

• b) It issues shares to the general public through an IPO

• c) It borrows money from banks

• d) It merges with another company

What does a stock market index represent?

• The total number of stocks listed on the market

• The overall price level of a basket of selected stocks

• The amount of money invested in the stock market

• The number of transactions made on the stock market

Who ensures the clearing and settlement of trades in India?

• Stock brokers

• SEBI

• NSCCL

• Asset Management Companies

What is a stock split?

• Issuing additional shares to existing shareholders

• Reducing the face value of existing shares

• Merging two companies

• Paying dividends to shareholders

How do interest rate changes by the central bank affect stock markets?

• a) Higher interest rates typically lead to higher stock prices

• b) Higher interest rates generally lead to lower stock prices

• c) Lower interest rates have no effect on stock prices

• d) Stock prices are unaffected by interest rate changes

What is the typical market reaction to a company's announcement of a major acquisition?

• Stock prices generally decrease

• Stock prices may increase or decrease

• Stock prices remain unaffected

• Stock prices become highly stable

Which of the following best describes the impact of quantitative easing (QE) on stock markets?

• QE typically leads to a decrease in stock prices as it signifies economic instability.

• QE involves the central bank purchasing securities, which increases money supply and generally drives up stock prices.

• QE involves increasing interest rates, which usually results in lower stock prices.

• QE is a fiscal policy tool that directly affects corporate tax rates and stock prices.