WorksheetsMittal School of Business
Total questions: 46
Worksheet time: 23mins
Which Indian stock exchange is the largest by market capitalization?
Bombay Stock Exchange (BSE)
National Stock Exchange (NSE)
Calcutta Stock Exchange
Multi Commodity Exchange
Which index is known as the barometer of the Indian stock market?
Sensex
Nifty
Dow Jones
Nasdaq
What does a bullish stock market indicate?
Falling stock prices
Rising stock prices
Stable stock prices
Unpredictable stock prices
What does the term "market capitalization" mean?
Total shares sold on a single day
Market value of a company's outstanding shares
Total revenue of the stock market
None of the above
Which of the following is an example of a derivative instrument?
Stock
Option
Bond
Mutual Fund
Which of these represents a stock index in the US?
FTSE
Sensex
Nasdaq
Nikkei
What is P/E ratio?
Profit/Earnings
Price/Earnings
Price/Equity
Profit/Equity
Which financial statement shows a company’s profit and loss?
Balance sheet
Income statement
Cash flow statement
Equity report
What does the term "short selling" mean?
Buying shares at a lower price
Selling shares that you do not own
Selling shares for a shorter duration
None of the above
What is the function of a clearing house in stock markets?
To monitor insider trading
To facilitate settlement of trades
To calculate market indices
None of the above
What is "beta" in stock analysis?
A measure of profitability
A measure of volatility compared to the market
A measure of stock price growth
None of the above
What is a bluechip stock?
A stock with high volatility
A stock from a large, well-established company
A penny stock
None of the above
What is the ask price in the stock market?
The price a buyer is willing to pay for a stock
The price a seller is willing to accept for a stock
The average price of a stock
None of the above
Which type of analysis uses historical price charts to predict future stock movements?
Fundamental Analysis
Technical Analysis
SWOT Analysis
Market Sentiment Analysis
What is the primary difference between common and preferred stock?
Common stockholders receive fixed dividends
Preferred stockholders have no voting rights
Preferred stockholders cannot trade their shares
None of the above
What does liquidity in the stock market refer to?
The total cash a company holds
The ability to convert an asset to cash quickly
The amount of profit a stock generates
None of the above
Which of these is NOT a characteristic of equity shares?
Voting rights
Fixed dividend
Ownership
Riskbearing
If you expect a stock price to fall, which of the following strategies would you use?
Buy the stock
Short sell the stock
Hold the stock
Buy more shares
What type of order should you place if you want to buy a stock at a specific price or lower?
Market order
Limit order
Stoploss order
Good till cancelled order
Which type of risk is reduced through diversification?
Systematic risk
Unsystematic risk
Market risk
Inflation risk
What does "alpha" measure in stock market performance?
Stock volatility
Excess returns compared to a benchmark
The beta of a stock
Market capitalization growth
Which type of fund invests in stocks that align with a specific market index?
Mutual fund
Hedge fund
Index fund
Venture fund
What is a 'penny stock'?
A stock with high market capitalization
A low-priced stock with high risk
A stock traded only in foreign markets
None of the above
What does 'book value' of a stock mean?
The current market price of the stock
The value of assets per share after liabilities are deducted
The highest trading price of a stock in a year
None of the above
What is 'margin trading'?
Trading in derivatives only
Trading with borrowed funds or leverage
Trading in penny stocks only
None of the above
What is the primary purpose of a stock split?
To increase market capitalization
To make shares more affordable and increase liquidity
To reduce the number of outstanding shares
None of the above
Which term describes the right to buy a stock at a predetermined price in the future?
Put option
Call option
Futures contract
Market order
If a stock is trading at ₹150, and the company announces a 2:1 stock split, what will be the new stock price?
₹300
₹100
₹75
₹50
You own 200 shares of a company. After a 1:2 bonus issue, how many shares will you own?
200
300
400
600
A stock's EPS is ₹25, and the dividend payout ratio is 40%. What is the dividend per share?
₹10
₹15
₹25
₹40
A company has a beta of 1.5. If the market return increases by 10%, what is the expected increase in the stock’s return?
1.5%
10%
15%
5%
If the interest rate rises, what happens to the stock prices, assuming all else equal?
Stock prices rise
Stock prices fall
Stock prices remain unchanged
None of the above
What does a "candlestick chart" display?
Open, high, low, and close prices of a stock
Only the closing price of a stock
Volume of shares traded
None of the above
What is "support" in technical analysis?
A price level where a stock tends to find buying interest
A price level where a stock tends to find selling pressure
The maximum price a stock can reach
None of the above
What is RSI (Relative Strength Index) used for?
To measure market volatility
To identify overbought or oversold conditions
To calculate dividend yields
None of the above
What does a "Golden Cross" in technical analysis signify?
The death of a trend
A bullish signal when a short-term moving average crosses above a long-term moving average
A bearish signal when a longterm moving average crosses above a shortterm moving average
None of the above
Which of the following is the largest stock exchange in the world by market capitalization?
Nasdaq
New York Stock Exchange (NYSE)
London Stock Exchange
Shanghai Stock Exchange
Which country’s stock exchange is referred to as the "Nikkei"?
China
Japan
South Korea
Singapore
What does FTSE 100 represent?
The top 100 companies in the US
The top 100 companies in the UK
The top 100 companies in India
None of the above
What is "free float" in stock markets?
Total shares of a company
Shares available for trading in the market
Shares held by promoters only
None of the above
What does the term "NAV" stand for in mutual funds?
Net Annual Value
Net Asset Value
New Average Value
None of the above
What is the meaning of "record date" in dividends?
The date dividends are paid
The last date to be eligible for dividends
The date shareholders are identified for dividends
None of the above
What is the primary purpose of hedging in derivatives?
To take on more risk
To minimize or eliminate risk
To speculate on market movements
None of the above
Which of the following is NOT a type of derivative?
Futures
Options
Bonds
Swaps
If you purchase a put option, you are betting that:
The price of the underlying asset will increase
The price of the underlying asset will decrease
The price of the underlying asset will remain the same
None of the above
What is the strike price in options trading?
The price of the option
The price at which the underlying asset can be bought or sold
The current market price of the asset
None of the above
