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Secondary Market and Stock Exchange Quiz

Total questions: 60

Worksheet time: 30mins

Name
Class
Date
1.

The secondary market deals with

a)

Issue of new securities

b)

Transfer of existing securities

c)

Redemption of securities

d)

Conversion of securities

2.

Which of the following is the primary objective of the secondary market?

a)

Capital formation

b)

Price discovery

c)

Mobilisation of savings

d)

Issue of IPO

3.

Liquidity in the secondary market means

a)

Ease of issuing shares

b)

Ease of converting securities into cash

c)

Availability of brokers

d)

Price stability

4.

Which market provides exit option to investors?

a)

Primary market

b)

Money market

c)

Secondary market

d)

Capital market

5.

The secondary market encourages

a)

Corporate savings

b)

Investment confidence

c)

Government borrowing

d)

Bank deposits

6.

Which of the following is NOT a function of stock exchange?

a)

Providing liquidity

b)

Price discovery

c)

Capital creation

d)

Regulating trading

7.

Continuous pricing of securities takes place in

a)

Primary market

b)

OTC market

c)

Secondary market

d)

Money market

8.

Stock exchanges help in

a)

Eliminating speculation

b)

Encouraging speculation

c)

Discouraging investment

d)

Fixing dividend

9.

Secondary market prices are determined by

a)

Face value

b)

Issue price

c)

Demand and supply

d)

Par value

10.

Which of the following reflects the health of an economy?

a)

Bank rate

b)

Inflation rate

c)

Stock market performance

d)

Exchange rate

11.

Listing of securities means

a)

Issue of shares

b)

Trading of shares

c)

Admission of securities for trading

d)

Cancellation of shares

12.

The main objective of listing is to

a)

Increase face value

b)

Ensure liquidity

c)

Reduce speculation

d)

Fix prices

13.

Which is the oldest stock exchange in India?

a)

NSE

b)

BSE

c)

CSE

d)

OTCEI

14.

BSE Sensex consists of

a)

30 companies

b)

50 companies

c)

100 companies

d)

500 companies

15.

NSE was established in

a)

1985

b)

1990

c)

1992

d)

1995

16.

NSE introduced which trading system?

a)

Floor trading

b)

Open outcry

c)

Screen-based trading

d)

Ring trading

17.

Listing requirements are framed to

a)

Protect investors

b)

Protect brokers

c)

Increase speculation

d)

Avoid disclosure

18.

Which exchange introduced electronic trading first in India?

a)

BSE

b)

NSE

c)

OTCEI

d)

CSE

19.

Which of the following is NOT a benefit of listing?

a)

Liquidity

b)

Marketability

c)

Price transparency

d)

Guaranteed returns

20.

NSE is known for

a)

Regional trading

b)

Nationwide trading network

c)

Manual trading

d)

Limited membership

21.

A stock market index represents

a)

Price of one share

b)

Performance of selected stocks

c)

Company profit

d)

Dividend rate

22.

Sensex is calculated using

a)

Simple average method

b)

Price-weighted method

c)

Free-float market capitalisation

d)

Equal-weighted method

23.

NIFTY consists of

a)

30 stocks

b)

40 stocks

c)

50 stocks

d)

100 stocks

24.

Free-float market capitalisation excludes

a)

Public shareholding

b)

Promoters’ holding

c)

Market price

d)

Paid-up capital

25.

Which index reflects banking sector performance?

a)

NIFTY IT

b)

NIFTY Pharma

c)

NIFTY Bank

d)

Sensex

26.

Sectoral indices help investors to

a)

Avoid risk

b)

Analyse sector-specific performance

c)

Predict dividends

d)

Fix prices

27.

Which of the following is a broad market index?

a)

Bank NIFTY

b)

NIFTY FMCG

c)

Sensex

d)

NIFTY PSU Bank

28.

Index value increases when

a)

Share prices fall

b)

Market capitalisation decreases

c)

Share prices rise

d)

Trading volume reduces

29.

Which index tracks IT sector?

a)

NIFTY IT

b)

NIFTY Auto

c)

NIFTY Metal

d)

Sensex

30.

Index calculation is useful for

a)

Dividend declaration

b)

Market trend analysis

c)

Tax calculation

d)

Bonus issue

31.

Buying and selling of securities occurs in

a)

Primary market

b)

Secondary market

c)

Capital market only

d)

Money market

32.

A market order is executed

a)

At a future price

b)

At a specified price

c)

At prevailing market price

d)

At closing price

33.

A limit order specifies

a)

Time of trade

b)

Quantity only

c)

Maximum or minimum price

d)

Broker name

34.

Day order is valid for

a)

One week

b)

One month

c)

One trading day

d)

Till executed

35.

Settlement cycle in Indian stock market is

a)

T+1

b)

T+2

c)

T+3

d)

T+5

36.

Clearing corporation performs

a)

Trading

b)

Settlement guarantee

c)

Brokerage

d)

Listing

37.

Delivery versus Payment (DVP) means

a)

Delivery without payment

b)

Payment without delivery

c)

Simultaneous exchange

d)

Deferred payment

38.

Contract note is issued by

a)

Stock exchange

b)

Clearing house

c)

Broker

d)

Depository

39.

Contract note contains

a)

Dividend details

b)

Trade details

c)

Company accounts

d)

Market index

40.

Trade settlement ensures

a)

Price stability

b)

Ownership transfer

c)

Listing

d)

Issue of shares

41.

Depository system deals with

a)

Physical shares only

b)

Electronic holding of securities

c)

Cash transactions

d)

IPO allotment

42.

Demat account is used to

a)

Store money

b)

Store securities electronically

c)

Issue shares

d)

Trade commodities

43.

Which was the first depository in India?

a)

CDSL

b)

NSDL

c)

RBI

d)

SEBI

44.

CDSL was promoted mainly by

a)

RBI

b)

BSE

c)

NSE

d)

SEBI

45.

Dematerialisation refers to

a)

Issue of shares

b)

Conversion into physical form

c)

Conversion into electronic form

d)

Cancellation of shares

46.

Rematerialisation means

a)

Demat to physical

b)

Physical to demat

c)

Trading

d)

Settlement

47.

Depository Participant acts as

a)

Investor

b)

Intermediary

c)

Regulator

d)

Issuer

48.

Which of the following is NOT a depository function?

a)

Safekeeping

b)

Transfer of ownership

c)

Granting loans

d)

Corporate action processing

49.

Demat reduces

a)

Liquidity

b)

Risk of loss

c)

Transparency

d)

Speed of settlement

50.

ISIN is used to

a)

Identify investors

b)

Identify securities

c)

Identify brokers

d)

Identify exchanges

51.

Bull expects prices to

a)

Fall

b)

Remain stable

c)

Rise

d)

Fluctuate

52.

Bear expects prices to

a)

Rise

b)

Fall

c)

Stabilise

d)

Remain constant

53.

A stag applies for shares in

a)

Secondary market

b)

IPO

c)

Derivatives

d)

Commodity market

54.

Lame duck refers to a speculator who

a)

Makes high profit

b)

Exits early

c)

Fails to meet commitments

d)

Controls prices

55.

Speculation increases

a)

Market rigidity

b)

Market liquidity

c)

Price control

d)

Dividend stability

56.

Excessive speculation leads to

a)

Price stability

b)

Artificial price movements

c)

Investor protection

d)

Capital formation

57.

Which speculator sells first and buys later?

a)

Bull

b)

Bear

c)

Stag

d)

Lame duck

58.

Speculation differs from investment mainly in terms of

a)

Time horizon

b)

Risk

c)

Capital

d)

Ownership

59.

Healthy speculation helps in

a)

Price discovery

b)

Market manipulation

c)

Investor loss

d)

Market collapse

60.

Who benefits most during bullish market?

a)

Bear

b)

Lame duck

c)

Bull

d)

Stag

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