Question 1

An order for the purchase of securities at a fixed price is known as&#10;A)Limit order&#10;B)Open order&#10;C)Discretionary order&#10;D)Stop loss order

Accepted Answer

A limit order is an order to buy or sell a security at a specific price or better. This allows the investor to specify the maximum price they are willing to pay or the minimum price they are willing to accept.

Question 2

Speculator who neither buy nor sell securities in the market, but still trade on them are called&#10;A)Wolve&#10;B)Stag&#10;C)Bull&#10;D)Bear

Accepted Answer

Stags are speculators who apply for shares in a new issue with the hope of selling them at a premium as soon as trading begins, without the intention of holding onto the securities for long. They do not typically buy or sell securities in the market in the traditional sense but aim to profit from short-term price movements right after the issue.

Question 3

The process of holding the entire supply of a particular security with a view to dictating terms is called&#10;A)Cornering&#10;B)Wash sales&#10;C)Rigging&#10;D)Arbitrage

Accepted Answer

Cornering the market refers to the practice of acquiring enough shares of a particular security to gain control over its price, allowing the person or group that has cornered the market to dictate terms.

Question 4

------------ market deals in unlisted securities&#10;A)Blue chip market&#10;B)Bear market&#10;C)Grey market&#10;D)Bull market

Accepted Answer

The grey market deals in unlisted securities, which are securities not listed on any official stock exchange. This market allows for the trading of shares before they are issued in an initial public offering (IPO), among other activities.

Question 5

When purchases of securities are more than sales of securities, the market is called&#10;A)Bullish&#10;B)Bearish&#10;C)Grey&#10;D)Odd

Accepted Answer

When purchases of securities exceed sales, it indicates a high demand for stocks, which typically leads to rising prices. This scenario is characteristic of a bullish market, where investor confidence and expectations of future gains are high.

Question 6

When sales of securities are more than purchases of securities, the market is called&#10;A)Bullish&#10;B)Bearish&#10;C)Grey&#10;D)Odd

Accepted Answer

When sales of securities exceed purchases, it indicates a bearish market, characterized by declining prices and a pessimistic outlook, as investors are selling off their holdings.

Question 7

--------- is the charges paid by a bull speculator to the other party for obtaining carry over facility&#10;A)Backwardation&#10;B)Contango&#10;C)Spread&#10;D)Margin

Accepted Answer

Contango is the fee paid by a bull speculator to carry over a position to the next trading period.

Question 8

--------- is the amount paid by bear to facilitate him to renew a bargain until next settlement date&#10;A)Backwardation&#10;B)Contango&#10;C)Spread&#10;D)Margin

Accepted Answer

Backwardation refers to the market condition where the price of a futures contract is lower in the farther out months than in the nearer months. This is relevant to the scenario described because it involves a cost to the bear (a trader who expects prices to fall) for the privilege of extending a short position to a future date, typically in a market where the spot price is higher than the futures price, incentivizing the bear to pay to delay delivery.

Question 9

-------- is the process of selling securities without owning them&#10;A)Short selling&#10;B)Long selling&#10;C)Margin trading&#10;D)Prise rigging

Accepted Answer

Short selling is the practice where an investor borrows a security and sells it on the open market, planning to buy it back later for less money.

Question 10

Bull speculators are also known as&#10;A)Tharawaniwalas&#10;B)Tejiwalas&#10;C)Mandiwalas&#10;D)Badliwalas

Accepted Answer

Bull speculators, who bet on the prices of securities or commodities rising, are known as Tejiwalas in certain markets.

Question 11

Bear speculators are also known as&#10;A)Tharawaniwalas&#10;B)Tejiwalas&#10;C)Mandiwalas&#10;D)Badliwalas

Accepted Answer

The answer of Bear speculators are also known as&#10;A)Tharawaniwalas&#10;B)Tejiwalas&#10;C)Mandiwalas&#10;D)Badliwalas...

Question 12

Another name of jobber is&#10;A)Tharawaniwalas&#10;B)Tejiwalas&#10;C)Mandiwalas&#10;D)Badliwalas

Accepted Answer

The answer of Another name of jobber is&#10;A)Tharawaniwalas&#10;B)Tejiwalas&#10;C)Mandiwalas&#10;D)Badliwalas...

Question 13

Those who provides finance for carry forward transactions in securities is called&#10;A)Tharawaniwalas&#10;B)Tejiwalas&#10;C)Mandiwalas&#10;D)Badliwalas

Accepted Answer

The answer of Those who provides finance for carry forward...

Question 14

The speculator who observes very fast the trends and changes in market is&#10;A)Bull&#10;B)Bear&#10;C)Stag&#10;D)Wolves

Accepted Answer

The answer of The speculator who observes very fast the...

Question 15

------is the bear speculator who struggling to complete his commitments because of wrong foot&#10;A)Bull&#10;B)Lame duck&#10;C)Stag&#10;D)Wolves

Accepted Answer

The answer of ------is the bear speculator who struggling to...

Question 16

An option (right) to purchase shares in future at predetermined price is called&#10;A)Hedging&#10;B)Put option&#10;C)Push option&#10;D)Call option

Accepted Answer

The answer of An option (right) to purchase shares in...

Question 17

An option (right) to sell shares in future at predetermined price is called&#10;A)Hedging&#10;B)Put option&#10;C)Pull option&#10;D)Call option

Accepted Answer

The answer of An option (right) to sell shares in...

Question 18

---------- refers to the process of creating an artificial condition in market in order to push price of particular shares.&#10;A)Cornering&#10;B)Arbitrage&#10;C)Option deal&#10;D)Rigging

Accepted Answer

The answer of ---------- refers to the process of creating...

Question 19

An attempt to gaining short term profit from the price difference or movements of securities are called&#10;A)Investment&#10;B)Speculation&#10;C)Hedging&#10;D)All the above

Accepted Answer

The answer of An attempt to gaining short term profit...

Question 20

Companies (Amendment) bill-1999 restricts buy back of shares up to........... of the paid up capital&#10;A)50%&#10;B)20%&#10;C)25%&#10;D)60%

Accepted Answer

The answer of Companies (Amendment) bill-1999 restricts buy back of...

Question 21

&#34;AMBI&#34; stand for&#10;A)Association of Management of Banks in India&#10;B)Association of Merchant banks in India&#10;C)Association of Modern Banks in India&#10;D)Automated Mechanism for Borrowing and Investment

Accepted Answer

The answer of &#34;AMBI&#34; stand for&#10;A)Association of Management of Banks...

Question 22

In listed securities, &#34;Group A shares&#34; are also known as&#10;A)Specified shares&#10;B)Cleared securities&#10;C)Non- specified shares&#10;D)Both a & b above

Accepted Answer

The answer of In listed securities, &#34;Group A shares&#34; are...

Question 23

In listed securities, &#34;Group B shares&#34; are also known as&#10;A)Specified shares&#10;B)Non-Cleared securities&#10;C)Non- specified shares&#10;D)Both b & c above

Accepted Answer

The answer of In listed securities, &#34;Group B shares&#34; are...

Question 24

Odd lot shares are coming under -------- of listed securities&#10;A)Group A&#10;B)Group B&#10;C)Group C&#10;D)Any of the above

Accepted Answer

The answer of Odd lot shares are coming under --------...

Deck 6: Securities Trading Terminology and Market Categories