12th Commerce - Chapter 5 - Book Back & Creative One Mark Questions - Free Online Test

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Capital market regulator is

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IRDA
RBI
SEBI
NSE
None

Spot rate means settlement:

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Next day
On the same day
After one month
After two working days

If a client buys shares worth Rs. 1,00,000 and sells shares worth Rs. 1,00,000 through a stock-broker, then the maximum brokerage payable is _______

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Rs. 2,000
Rs. 5,000
Rs. 6,000
Rs. 4,000

NSDL means

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National Securities Depositories Limited
National Stock Depositories Limited
National Service Depositories Limited
None of these

Capital market do not provide

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Long term Funds
Equity Funds
Short term Funds
Debenture Funds

A company can ensure the complete success of a rights offering by making use of a

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Green shoe provision.
Standby arrangement.
Shelf registration
Over subscription privilege.

When the investment banker bears the risk of not being able to sell a new security at the established price, this is known as

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A best efforts offering
Shelf registration
Underwriting
Making a market

Markets in which transactions are done through computers and telephone without any specific location are classified as

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Past counter market
Over the counter markets
Capital counter market
Future counter market

When the forward margin is in ascending order it means that the currency is in

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Range-bound
Discount
Out of range
Premium

OTCEI means

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Over the Counter Exchange of India
None of these
Over the committee Exchange of India
Over the Council Exchange of India

SHCIL means

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Stock Holding Company of India Limited
Stock Holding Corporation of India Limited
All of these
Stock Holding Committee of India Limited

Type of exchange members who only buy and sell for their personal account are classified as

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Non-investment traders
Investment traders
Professional traders
Commercial traders

If a client buys shares worth Rs. 5,25,000 and sells shares worth Rs. 4,75,000 through a broker, then the maximum brokerage payable to broker is ___

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Rs. 20,000
Rs. 15,000
Rs. 25,000
Rs. 10,000

Letter stock is

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Privately placed common stock that cannot be immediately resold to the general public.
A handwritten certificate representing a corporate IOU.
Securities issued by the United States Postal Service.
A mass mailing offering a security for sale.

Financial institutions having loans swapped for bonds can sell all bonds in

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Secondary markets
Primary markets
Under-developed markets
Developed markets

How many times a security can be sold in a secondary market?

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Three Times
Two Times
Multiple Times
Only One Time

In a common stock rights offering the subscription price is generally

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Set after the stock goes "ex-rights."
Set equal to the current market price of the stock.
Set below the current market price of the stock.
Set above the current market price of the stock.

A preliminary prospectus is known as a

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Blue sky.
Green shoe.
Golden parachute.
Red herring.

Finacial Intermediaries ............

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Include insurance companies and pension funds
Do not invest in new long-term securities
Include the national and regional stock exchanges
Are usually underwriting syndicates

The period between ............ and 1973 market the development of infrastructure of capital market

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1948
1949
1947

The major players in the foreign exchange market are:

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Commercial baks
Exchange of Brokers
RBI and the central government
Corporates

A best efforts offering is sometimes used in connection with a of new, long-term securities

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Private placement
Public issue
Privileged subscription
All of the above

What does ‘OM’ indicate as an activity in the ‘Activity Log’ screen in the NEAT system

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Trade Modified
Order Modified
Order Cancelled
Order Matched

Institutional transactions are identified by the use of the ________ at the time of order entry

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User code
Client id
Participant code
User id

Participants in the capital market includes

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Individuals
Corporate
All of the Above
Financial Institutions

If an investment banker has agreed to sell a new issue of securities on a best-efforts basis, the issue

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Most likely involves a well-established, large company.
Most likely involves bonds instead of common stock.
Most likely involves an unusually large stock offering.
Results in no assumption of underwriting risk by the investment banker.

National Securities Depositories Limited was set up in the year ........

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1986
1896
1996
1886

When the NSEI was established

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1990
1998
1992
1997

Primary market is a Market where securities are traded in the

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First Time
Three Times
Second Time
Several Times

Forward margin refers to :

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None of the above
The profit on forward contract
The commission payable to exchange brokers
The difference between spot rate and forward rate

Markets in which new securities are issued by corporations to raise funds are called

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Proceeds markets
Secondary markets
Gross markets
Primary markets

Exchange Margin is added to :

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RBI rates
Base rate for busying
Cross rates
Overseas rates

The actual market value of a right will differ from its theoretical value for all of the following reasons EXCEPT for

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The irregular exercise and sale of rights over the subscription period.
The size of the firm's marginal tax rate.
The amount of transactions costs incurred.
Investor speculation.

Price of underlying asset is added into intrinsic value of option to calculate

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Forward price of option
Spot price of option
Exercise price of option
Book value of option

For liquid securities, the VaR margins are based on the ________ of the Security

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Volatility
Returns
Lliquidity
Eexposure limit