Question 1

A) a debenture is an acknowledgement of debt due by a company issued under a common seal B) bonus shares can be issued only out of free reserves built out of revenue profit or share premium collected in cash

Accepted Answer

A debenture is indeed an acknowledgment of debt by a company, typically issued under its common seal, representing a loan taken by the company. Bonus shares, on the other hand, can be issued out of free reserves, which include revenue profits or share premium collected in cash, allowing companies to reward shareholders without reducing cash reserves.

Question 2

Process used by companies raising capital through IPO's and FPO's to aid price and demand discovery

Accepted Answer

Book building is a process used by companies raising capital through Initial Public Offerings (IPOs) and Follow-on Public Offerings (FPOs) to aid in price and demand discovery. It involves collecting bids from investors to determine the price at which the securities will be offered.

Question 3

In the methods of marketing securities BOD stands for

Accepted Answer

BOD in the context of marketing securities stands for "Bought Out Deals," which is a method of off-market selling of shares where an investor buys a large portion of a company's share directly from the company.

Question 4

FDI stands for

Accepted Answer

FDI stands for Foreign Direct Investment, which refers to an investment made by a firm or individual in one country into business interests located in another country.

Question 5

Indian companies are allowed to raise capital in the international market through the issue of

Accepted Answer

Indian companies can raise capital in the international market through both American Depository Receipts (ADR) and Global Depository Receipts (GDR).

Question 6

Bonds that are denominated in a currency other than that of the country in which they are issued

Accepted Answer

Eurobonds are bonds that are issued in a currency other than the currency of the country or market in which they are issued. They allow issuers to access capital outside their domestic markets.

Question 7

-----is a dollar denominated form of equity ownership

Accepted Answer

An American Depositary Receipt (ADR) is a dollar-denominated form of equity ownership in a non-U.S. company.

Question 8

The apex authority of insurance industry

Accepted Answer

IRDA (Insurance Regulatory and Development Authority of India) is the apex authority in the insurance industry in India, responsible for regulating and promoting the insurance and re-insurance industries.

Question 9

GIC has its registered office and head quarters in

Accepted Answer

GIC, or General Insurance Corporation of India, has its registered office and headquarters in Mumbai.

Question 10

------was founded in 1956 with the merger of 243 insurance companies and provident societies

Accepted Answer

LIC (Life Insurance Corporation of India) was founded in 1956 through the merger of 243 insurance companies and provident societies, following the passing of the Life Insurance of India Act by the Indian Parliament.

Question 11

IRDA act was passed in

Accepted Answer

The answer of IRDA act was passed in
...

Question 12

Identify public sector undertaking

Accepted Answer

United India Insurance is a public sector undertaking in India, owned by the Government of India. It is a nationalized insurance company, part of the public sector.

Question 13

General insurance include

Accepted Answer

General insurance includes various forms of non-life insurance policies, such as auto insurance, home insurance, and travel insurance. Life insurance is not considered a form of general insurance.

Question 14

-----is a form of protection against possible risk

Accepted Answer

Insurance is specifically designed to provide protection against various forms of risk, such as health issues, accidents, or property damage, by offering financial compensation.

Question 15

A) BSE was the first to offer screen based trading all over India B) nse is the leading and the oldest stock exchange in India as well as in Asia.

Accepted Answer

The answer of A) BSE was the first to offer...

Question 16

Stock exchange also referred as

Accepted Answer

Stock exchanges are referred to as secondary markets because they deal with the trading of existing securities between investors, rather than the issuance of new securities which occurs in the primary market.

Question 17

Identify one which is not the function of stock exchange

Accepted Answer

Stock exchanges primarily serve as platforms for buying and selling securities, not for raising capital directly. Companies raise capital through initial public offerings (IPOs) or other means before their stocks are traded on the stock exchange.

Question 18

--------is a process through which any member-owned organisation becomes a shareholder-owned company

Accepted Answer

Demutualization is the process by which a customer-owned mutual organization or co-operative changes legal form to a joint stock company. It is most commonly seen in the insurance and financial sectors.

Question 19

NSE indices includes

Accepted Answer

All the mentioned indices, CNX MID CAP, CNX NIFTY JUNIOR, and S&P CNX NIFTY, are part of the NSE indices. These indices represent different segments of the Indian stock market and are used to track the performance of specific groups of stocks.

Question 20

BSE index is also called

Accepted Answer

The BSE index is also known as SENSEX, which stands for Stock Exchange Sensitive Index. It is a stock market index of 30 well-established and financially sound companies listed on the Bombay Stock Exchange.

Quiz 2: Financial Terminology and Institutions in India