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Financial Market

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

_______is the market which helps existing investors to sell their securities.

a)

Primary market

b)

Secondary market

c)

Capital market

d)

Commodity market

2.

_______is the institution which provides a platform for trading of existing securities having long-term maturity.

a)

SEBI

b)

WTO

c)

Stock exchange

d)

RBI

3.

PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank, in turn, will offer the shares to the general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.

a)

Private placement

b)

Offer through prospectus

c)

Offer for sale

d)

Rights issue

4.

The process of holding shares in electronic form is known as

a)

Demutualisation

b)

Dematerialisation

c)

Speculation

d)

None of the above

5.

It is a legally enforceable document which is issued by a stockbroker within 24 hours of the execution of a trade order.

a)

PAN number

b)

Unique Order Code

c)

Contract Note

d)

None of the above

6.

On this day, the exchange will deliver the share or make payment to the other broker

a)

Pay-in day

b)

Pay-out day

c)

Transaction day

d)

None of the above

7.

Jayant is holding a hundred shares of a company. He has been given a privileged offered to subscribe to a new issue of shares of the same company in the proportion of 2:1 to the number of shares already possessed by him. Identify the method of floatation being described in the above case.

a)

Offer through prospectus

b)

Offer for sale

c)

Rights issue

d)

Private placement

8.

Money market deals in _____________________

a)

Medium-term securities

b)

Short term Securities

c)

Long term Securities

d)

None of these

9.

A capital market is ideal when:

a)

Financial institutions are sufficiently developed

b)

Finance is available at a reasonable cost

c)

Capital is most productively allocated

d)

All of these

10.

Under this method of floatation in the primary market, a subscription is invited from the general public to invest in the securities of a company through the issue of advertisement.

a)

Private placement

b)

Offer through prospectus

c)

Offer for sale

d)

All of the above

11.

A company can raise capital through the primary market in the form of

a)

Equity shares

b)

Preference shares

c)

Debentures

d)

All of the above

12.

At present only two depositories are registered with SEBI .

a)

True

b)

False

13.

Sensex is the bench mark index of the NSE.

a)

True

b)

False

14.

Registration of collecting investing schemes and Mutual funds is a Regulatory function of SEBI

a)

True

b)

False

15.

Full form of e-IPOs

a)

a. Electronic internet Public Offer

b)

b. Electronic Initial Private Offer

c)

c. Electronic Initial Prospectus Offer

d)

d. Electronic Initial Public Offer

16.

An ideal Capital market is one

a)

a. Where finance is available at higher cost.

b)

b. Must provide insufficient information to investors.

c)

c. Where market operations are inconsistent.

d)

d. Which facilitates economic growth.

17.

.Dematerialization is the process of holding securities in

a)

a) Paper mode

b)

b) Electronic mode

c)

b) Physical form

d)

d) Wallet

18.

Dinesh has 100 equity shares of a company. He wants to sell 500 of these shares. Which market should be approach?

a)

a. Secondary market

b)

b. Primary market

c)

c. Financial markets.

d)

Money market

19.

The new issues market is also known as

a)

a. Money market

b)

b. Primary market

c)

c. Stock exchange

d)

d. Secondary market

20.

Government Securities are issued by agencies such as ---------

a)

Central Government

b)

State Government

c)

Semi Government Authorities

d)

All of the above

21.
FULL FORM OF S.E.B.I 
a)
STOCK EXCHANGE BOARD OF INDIA
b)
SECURITY AND EXCHANGE BOARD OF INDIA
c)
SECURITIES EXCHANGE BOARD OF INDIA
d)
SECURITIES AND EXCHANGE BOARD OF INDIA
22.

National stock exchange provides platform for

a)

Wholesale debt market

b)

Equities

c)

Commercial papers

d)

Both a and b

23.

The National stock exchange of India commenced future trading in the year

a)

1999

b)

2000

c)

2001

d)

2002

24.

The settlement cycle in NSE is

a)

T + 5

b)

T + 3

c)

T + 2

d)

T+1

25.

Clearing and settlement operations of NSE are carried out by

a)

NSDL

b)

NSCCL

c)

SBI

d)

NDSL