Deck 7: Stock Market and Securities Trading in India

Question 1

ALBM (Automated Lending &Borrowing Mechanism) was introduced by

A)NSDL
B)SEBI
C)NSCCL
D)CDSL

Answer 1

NSCCL

Question 2

under public issue of shares, reservation for permanent employees

A)10%
B)25%
C)15%
D)50%

Answer 2

10%

Question 3

The conditions to be satisfied by a public company for issuing Right shares are specified in --------------of Companies Act.1956

A)Sec.75
B)Sec.79
C)Sec.81
D)Sec.91

Answer 3

Sec.81

Question 4

----------- is a method of cancellation of shares

A)Book building
B)Bonus issue
C)Buy back
D)Reissue

Question 5

Which of the following is / are method of Buy back of shares

A)Tender offers
B)Open offers
C)Dutch Auction
D)All the above

Question 6

Over the Counter Exchange of India commenced operation in the year

A)1988
B)1992
C)1995
D)1989

Question 7

Members of the OTCEI are---------- only

A)Individuals
B)Corporates
C)Financial institution
D)Banks

Question 8

The whole sale market segment for NSE is meant for

A)Corporate securities
B)Govt.securities
C)Securities of MNCs
D)Securities of Financial Institutions

Question 9

As per SEBI guidelines, a new company which has not completed 12 months commercial productions has to issue shares at -------

A)Discount
B)Premium
C)Par
D)any of the above

Question 10

National Stock Exchange (NSE) established in the year

A)1990
B)1992
C)1995
D)1999

Question 11

Method of trading in NSE is

A)Floor based- Order driven
B)Screen based- Code driven
C)Screen based - Order driven
D)Floor based - Quote driven

Question 12

Method of trading in OTCEI is

A)Floor based- Order driven
B)Screen based- Code driven
C)Screen based - Order driven
D)Floor based - Quote driven

Question 13

-------- are eligible to list in OTCEI

A)Small companies
B)Large companies
C)Medium size companies
D)Small and Medium size companies which are not listed in any other stock exchange

Question 14

Discount and Finance House of India (DFHI) mainly deals in

A)Commercial bills
B)Corporate securities
C)Treasury bills
D)Commercial papers

Question 15

-------- of shares is the first step in depository process

A)Mutualisation
B)Mobilisation
C)Immobilisation
D)Rematerialisation

Question 16

In depository system, --------- is a link between depository and the owner.

A)Depository participant
B)Register and Transfer Agent
C)Issuer
D)Custodian.

Question 17

"A central location for keeping securities on deposit" is

A)Stock exchange
B)Investment bank
C)Depository
D)Merchant banks

Question 18

The group of shares which are not permitted for short selling are

A)A group
B)B group
C)T group
D)None of these

Question 19

--------- group includes shares of companies which have failed to comply with listing requirements

A)A group
B)B group
C)T group
D)Z group

Question 20

In listed scrips, --------- group includes small cap stocks.

A)S group
B)TS group
C)T group
D)Z group

Question 21

Shares of well established and financially sound compnies,with very little investment risk and good history of earnings is known as

A)Alpha shares
B)Blue chip shares
C)Star stock
D)Beta stock

Question 22

In a stock exchange where the ownership, management and trading are concentrated in a single group, it is called

A)Mutual exchange
B)Recognised exchange
C)Dominant exchange
D)Un -recognised exchange

Question 23

In India, currently method of calculation of stock indexes is

A)Free float market capitalisation
B)Full float market capitalisation
C)Fixed float market capitalisation
D)Minimum float market capitalisation

Question 24

Fully automated screen based trading system in NSE is known as

A)BOLT
B)ALBM
C)BLISS
D)NEAT

Question 25

The Chief promoter of National Securities Depository Limited (NSDL) is

A)NABARD
B)BSE
C)NSCCL
D)NSE