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WorksheetsMcqs on Stock market operations
Total questions: 46
Worksheet time: 46mins
What is SP-500?
A crop of wheat
The name of Mumbai-based office of SEBI
A stock exchange of USA
A scheme announced by the Government of India
How many companies are included in the SENSEX?
30
50
111
25
Which of the following statements is correct?
FTSE-100 is a stock exchange of London, which monitors European market activities
Nikkei is related to Singapore Stock Exchange
Middex belongs to Japan
BSE does not belong to sensex
KOSPI is the index of which country?
(a) Japan
(b) South Korea
(c) Singapore
d) France
. Which of the following index is not matched correctly?
(a) SET: Thailand
(b) JCI: Japan
(c) NASDAQ: America
(d) TSEC: Taiwan
Which of the following is responsible for the fluctuations in the Sensex?
(a) Rain
(b) Monetary policy
(c) Political instability
(d) All of the above
Which of the following is not a credit rating agency?
(a) CRISIL
b) ICRA
(c) NIKKEI
(d) CARE
. Which of the following words does not belong to the stock exchange?
(a) NAV
(b) NSE
(c) IPO
(d) KPO
9. What is called "Blue Chip"?
(a)Companies which are run by large corporate houses
(b) A company, whose share always provides profit
(c) A multinational company
(d) A company which is listed on a foreign stock exchange
10. When was Nifty established?
(a) 1952
(b) 1965
(c) 1991
(d) 1996
Where is the New York Stock Exchange located?
a) Broadway
b) Empire State Building
c) Times Square
d) Wall Street
. Which of the following cities does NOT have a formal stock exchange?
a) Frankfurt
b) London
c) Monte Carlo
d) Hong Kong
9. The FTSE 100 index is used to measure stock market performance in which country?
a) France
b) United Kingdom
c) Germany
d) Finland
The estimated price of the stock market is at
a. 50 trillion dollars
b. 51 trillion dollars
c. 52 trillion dollars
d. 53 trillion dollars
A fixed income security is also called:
a. decided value
b. basic value
c. actual value
d. fixed value
Actual trades are based on
a. free economy
b. auction market
c. laissez faire
d. closed market
The New York Stock Exchange is called:
a. situational change
b. nominal change
c. physical change
d. chemical change
. Computers performs this function :
a. design trading
b. system trading
c. file trading
d. program trading
The depository participant
is the link between the depositor and the investor
can offer depository services only after it gets proper registration from SEBI
A depository can be compared with bank,
All the above
two depositories of India.
National Securities Depository Ltd. and Central Depository Securities Ltd.
National Share Depository Ltd and Central Share Depository Ltd
National Stock Depository Ltd. and Central Stock Depository Ltd.
National Stock Depository Lenders and Central Stock Depository Lenders
NASDAQ means
National Association of Stock Dealers Automated Quotation
National Association of Share Dealers Automated Quotation
National Association of Securities Dealers Automated Quotation
National Authority of Stock Dealers Automated Quotation
a.A jobber is an independent dealer in securities. b.He is not allowed to deal with the public directly. c. He works for commission. Which one is correct
a only
a and b
a,b and c
None of the above
Foreign Institutional Investors means
a.Foreign Institutional Investors are an institution established and incorporated outside India, which proposes to make investment in Indian Securities..
b.They are eligible to make purchase shares and convertible debentures issued by Indian Companies under the Portfolio Investment Scheme
a and b above
None of the above
“Stock Exchange is an association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing in securities.” is defined under
Securities Contact Regulation Act,1956
Securities Contact Regulation Act,1955
Shares Contact Regulation Act,1956
Securities and Debentures Contact Regulation Act,1956
recognized stock exchanges which have to function under
the rules, by –laws and regulations approved by the Central Government.
the rules, by –laws and regulations approved by the Central and State Government
the rules, by –laws and regulations approved by the State Government.
the rules, by –laws and regulations approved by the Ministry of Corporate Affairs
At present the stock exchanges in India have one of the following organizational forms: a. Voluntary non-profit- making association b. Public limited company c. Company limited by guarantee.
Only a
Only b
a and b
All a,b and c
NSE incorporated in a.) 1992 b.) was given recognition as stock exchange in April 1993 c.) started operation in June 1994. d)NSE was set up by IDBI and other financial institutions e.) paid up equity capital of Rs.25 crores. Which one is correct
only a
a, b and c
a,b,c, d and e
only d and e
India’s first national online stock market with segment for both debt and equity securities is
National Stock exchange
Bombay Stock Exchange
Ahmedabad Stock Exchange
OTC Exchange of India
Which one is true about National Stock exchange
A.There is screen based trading
B.The settlement cycle is T+3
A AND B
C.The settlement cycle T+2
. Broker :- A.Broker is a person who transact business in securities on behalf of his clients B.receives commission for his services. C.He deals between the jobbers and members.
A only
B only
A and C
A, B and C
Bull is a speculator who purchases various types of shares. He purchases to sell them on higher prices in future. He may sell the shares and securities before coming in possession. If the price falls then he suffers a loss.
True
False
Bear He is always in a position to dispose of securities which he does not possess. He makes profit on each transaction. He sells the various securities for the objective of taking advantages of an expected fall in prices.
True
False
Which one is true about Lame Duck?
Lame Duck is a.When bear fails to meet his obligations he struggles to meet finance. b. If the other party refuses to postpone the delivery them lame duck suffers heavy losses due to non availability of shares
Lame Duck is a .When bull fails to meet his obligations he struggles to meet finance. b. If the other party refuses to postpone the delivery them lame duck suffers heavy losses due to non availability of shares
Lame Duck is a person who makes all interested investors lame like a duck by buying large number of shares from the open market
None of the above
Which one is correct statement?
Stag He is also a speculator. He purchases the shares of newly floated company and shown himself a genuine investor. He is not willing to become an actual shareholder of the company. He purchases the shares to sell them above the par value to earn premium. A stag also suffer a loss.
Stag He is also a speculator. He is the lone purchases the shares of newly floated company and shown himself a genuine investor and becomes the shareholder of the company
Stag He is a long term investor. He is the lone purchaser of the shares of newly floated company and shown himself a genuine investor and becomes the shareholder of the company
None of the above
Which one is correct ?
Contango means to carry over dealing to the settlement which is a reward paid by the buyer to the broker to carry the dealing to the next settlement,
Contango is a commission paid to the stock exchange by the broker
Contango is a fine paid to SEBI
None of the above
Which of the following does financial services industry consist of? I. Telecommunication II. Insurance III. Fund Management IV. Trusts
A. I and II
B. III and IV
C. I, II and III
D. II, III and IV
What is the meaning of “financing” in the financial market?
A. Advising an organization to raise charity funds
B. Investing in the securities market
C. Sourcing funds
D. Converting the assets into cash
The capital markets consist of the primary market and secondary market. Which of the following statements is TRUE regarding the differences between the two markets?
A. New issues are distributed to investors in the primary market while existing securities are traded in the secondary market.
B. Existing securities are traded in the primary market while new issues are distributed to investors in the secondary market.
C. New issues are traded in the primary market while existing securities are distributed in the secondary market.
D. Existing securities are distributed to investors in the primary market while new issues are traded in the secondary market
The short term financial instruments traded in money market is commonly called
A. Bonds
B. Shares
C. Notes
D. Commercial Papers
Financial intermediation is the process that the financial intermediaries connect ________________ and _____________ by transferring funds from one side to another.
A. Banks and account holders
B. Borrowers and lenders
C. Borrowers and securities firms
D. Investors and lenders
You bought a share for $10 and sold it for $12 after one year. You received share dividend $1 during the holding period. What was the rate of holding period return?
A. 10%
B. 20%
C. 30%
D. 40%
Which of the following instruments would be commonly used as proxies of risk-free assets? I. U.S. Treasury Bills II. Hong Kong Stocks III. Exchange-Fund Bills IV. Corporate Bonds
I and III
II and IV
I, II and IV
II, III and IV
According to their own risk levels, rank the following investment funds in ascending order (from lowest to highest risk). I. Regional stock fund II. Bond fund III. Hedge fund IV. Global stock fund
A. (I) (IV) (II) (III)
B. (I) (II) (III) (IV)
C. (II) (III) (IV) (I)
D. (II) (IV) (I) (III)
Which of the following constitutes stock market manipulation?
A. Actively interfere the demand and supply of the securities and derivatives
B. Company director disclose the sensitive company news which have not been publicly disclosed
C. Anyone who disclose unfavorable information intentionally regarding the company business
D. An account executive trades stocks or uses funds in an account without the clients' consent or knowledge
.Backwardation:-
It is a commission which is paid by the sellers of securities to the buyers who wants to postpone transaction to the next account.
It is a fee which is paid by the brokers to stock exchanges.
It is an interest which is paid by the sellers of securities to the buyers who wants to postpone transaction to the next account.
It is a fee which is paid by the brokers to SEBI
As clearing house
1.give guarantee to all the transactions and acts as a counter party for all the transactions it will never have open position in the market.
2. It ensures that all the parties adhere to the system and procedures so that various parties in the market can do trading smoothly which in turns leads to more confidence of the player on the market and hence it increases liquidity in the market.
3. It ensures a proper risk management system in place by stipulating that margin is maintained which is of two types-initial and maintenance margin and hence accounting is done for all the gains and losses on daily basis and hence chances of default are reduced considerably. It ensures the delivery of the underlying assets is consistent in terms of quality, quantity, size etc…so that thre is no confusion among parties, in other words all contracts are standardized.
All the above
