NEW
Font size
WorksheetsFinancial market Quiz-1
Total questions: 20
Worksheet time: 21mins
One of the common irregularities noted by the Securities and Exchange Board of India during the inspection of a stock exchange was that it was dealing with unregistered sub-brokers. Identify the related function of Securities and Exchange Board of India.
development function
regulatory function
protective function
none of the above
Identify the correct sequence of steps to be followed in the trading procedure at the Stock Exchange.
Opening a trading account and Demat account, Placing an order, Settlement of order, Execution of order
Settlement of order, Opening a trading account and Demat account, Placing an order, Execution of order
Opening a trading account and Demat account, Placing an order, Execution of order, Settlement of order
Placing an order, Opening a trading account and Demat account, Execution of order, Settlement of order
It serves as an intermediary between the investor and the depository who is authorised to maintain the accounts of dematerialised shares.
Depository participant
Depository
Stock exchange
None of the above
Stock exchanges provide an opportunity for investors to disinvest and invest. Identify the related function of the stock exchange.
Providing scope for speculation
Providing liquidity and marketability to existing securities
Pricing of security
Spreading of the equity culture
Stock Exchange works as a mechanism for the valuation of securities through the forces of demand and supply. Identify the related function performed by the stock exchanges.
Providing scope for speculation
Providing liquidity and marketability to existing securities
Pricing of security
Spreading of the equity culture
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.
Private placement
Offer through a prospectus
Offer for sale
All of the above
A company can raise capital through the primary market in the form of _____.
Equity shares
Preference shares
Debentures
All of the above
Who issues a treasury bill?
Any nationalised bank
Any private sector bank
Reserve Bank of India
All of the above
Which one of the following is not a function of financial market?
Mobilisation of savings
Price determination of securities
Floating of companies
Lowering transaction cost
Primary and secondary markets develop simultaneously because they
complement each other.
complement with each other
control each other.
function independently.
Secondary market is in the form of
stock exchange.
money market
new issue market.
commercial exchange
___ is the market which helps existing investors to sell their securities.
Primary market
Secondary market
Capital market
Commodity market
___ is the institution which provides a platform for trading of existing securities having long-term maturity.
SEBI
WTO
Stock exchange
RBI
After the trade has been executed, the broker issues a Contract Note to the investor within
52 hours
24 hours
48 hours
12 hours
The mandatory detail that an investor has to provide to the broker at the time of opening a demat account is
Date of birth and address
PAN number
Residential status (Indian/NRI)
Bank account details.
It acts like a bank and keeps securities in electronic form on behalf of the investor
Depository Participant
Depository
Stock exchange
None of the above
The process of holding shares in electronic form is known as
Demutualisation
Dematerialisation
Speculation
None of the above
PK Enterprises Limited has sold an entire lot of 5,00,000 equity shares @ ₹9 each to Prosperous Bank Private Limited. The bank in return will offer the shares to general public for subscription @ ₹11 per share. Identify the method of floatation being described in the given lines.
Private placement
Offer through prospectus
Offer for sale
Rights issue
When securities are allotted to institutional investors & some selected individuals is referred to as _________.
Initial public offer
Offer through prospectus
Private placement
Offer for sale
SEBI was established in
1988
1992
1998
none of the above
