Capital Market Quiz

What is the capital market primarily associated with?

• Long-term funds

• Short-term funds

• Real estate investments

• Commodity trading

Which of the following is a method of fund raising in the primary market?

• Secondary offering

• Stock buyback

• Bond redemption

• Public issue

What is a rights issue?

• Issuing bonds to raise funds

• Selling shares to foreign investors

• Offering shares to existing shareholders

• Offering shares to the public

Which of the following is NOT a characteristic of the primary market?

• Source of debt and equity funds

• Enhances liquidity

• Market of new issues

• Leads to capital formation

What does FDI stand for?

• Foreign Debt Investment

• Foreign Dividend Investment

• Foreign Direct Investment

• Financial Development Investment

Which of the following is a source of debt funds from the international market?

• FDI

• FCCBs

• GDRs

• ADRs

What is the role of a merchant banker in a public issue?

• To regulate the stock market

• To act as a book-running lead manager

• To provide loans to investors

• To manage foreign investments

What is the minimum lock-in period for promoters in a preferential allotment?

• 3 years

• 1 year

• 2 years

• 6 months

What is the purpose of book building in an IPO?

• To manage the underwriting process

• To sell shares at a fixed price

• To determine the issue price based on demand

• To attract foreign investors

Which of the following is a feature of Foreign Institutional Investment (FII)?

• Involves direct control over companies

• Focuses on long-term investments

• Can invest only up to 10% of capital in a company

• Requires government approval