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WorksheetsFinancial market Quiz-2
Total questions: 20
Worksheet time: 17mins
The membership of a stock exchange is well-regulated and its dealings are well-defined according to the existing legal framework. This gives investors the advantage of:
Liquidity of securities
Determination of pricing of securities
Safety of transaction
None of these
Primary and secondary markets __________ .
Compete with each other
Complement each other
Function independently
Control each other
Which of the following is not a function of SEBI?
Registration of brokers and sub-brokers
Undertaking measures to develop finanical markets
Prohibition of insider trading
Holding securities in electronic form.
National Stock Exchange in India was recognized as stock exchange in the year.
April 1992
march 1993
March 1994
April 1993
Raj , a holder of 5000 shares of Narayan Ltd., is offered the proposal to buy one new share for every ten shares held by him. Which method of floatation new issue is discussed here?
Offer through Prospectus
Rights Issue
Private Placement
Offer for Sale
Which of the following is an objective of SEBI?
Training of intermediaries of securities market
Protecting the rights and interest of investors
Promotion of fair practices and code of conduct in securities market
Levying fees/charges for carrying out the purpose of the Act
Which of the following is a method of floatation in primary market?
Offer for sale
Private placement
Rights issue
All of these
Which of the following is a regulatory function of SEBI?
Regulation of takeover bids by companies
Controlling insider trading
Taking steps for investors protection
Conducting research and publishing information useful to all market participants
Which of the following is a function of Stock Exchange?
Pricing of securities
Providing scope for speculation
Safety of transactions
All of these
In which year was the SEBI established by the Government of India?
1980
1988
1992
1993
Which of the following helps to eliminate the use of stock certificates by placing stock transactions on computers?
Demat account
Securities Exchange Commission
Depository Trust Company
Federal Depository Insurance Corporation
The last step in the Trading Procedure on a Stock Exchange is:
Placing an order
Executing the order
Settlement of account
Selection of a broker
The functions of SEBI are:
Regulatory functions
Development functions
Protective functions
All of these
__________ is a process in which the investors are given an electronic number so that the securities can be held in an electronic form.
Dematerialisation
Depository
Demutualisation
All of these
‘A stock exchange is the creation of a continuous market where securities are bought and sold.’ Which of the following importance of stock exchange is referred here?
Pricing of securities
Spreading of equity cult
Providing liquidity and marketability to existing securities
Safety of transaction
‘Through the process of disinvestment and reinvestment savings get channelised into their most productive investment avenues.’ Which of the following importance of stock exchange is referred here?
Pricing of securities
Contributes to economic growth
Providing liquidity and marketability to existing securities
Safety of transaction
‘All buying and selling of shares and debentures are done through a computer terminal.’ This implies to:
Dematerialisation of securities
Screen based trading system
Demutualisation of stock exchange
None of these
Statement I: Banks and financial markets are competing intermediaries in the financial system. Statement II: Households can deposit their surplus funds with banks, who in turn could lend these funds to business firms.
Statement I is correct and Statement II is wrong
Statement II is correct and Statement I is wrong
Both the statements are correct
Both the statements are incorrect
Statement I: Certificate of deposits are also known as Zero Coupon Bonds issued by the Reserve Bank of India on behalf of the Central Government. Statement II: The original purpose of commercial paper was to provide short-terms funds for seasonal and working capital needs.
Statement I is correct and Statement II is wrong
Statement II is correct and Statement I is wrong
Both the statements are correct
Both the statements are incorrect
Statement I: Rights Issue is new issue of shares offered to existing shareholders in proportion to the number of shares they already possess. Statement II: Rights Issue is a privilege given to all applicants to subscribe to a new issue of shares according to the terms and conditions of the company.
Statement I is correct and Statement II is wrong
Statement II is correct and Statement I is wrong
Both the statements are correct
Both the statements are incorrect
