Question:

What is an Index?

A.

a basket of shares

B.

an indicator of market movement.

C.

an indicator of the economic conditions of the country.

D.

all of the above

Answer» d. all of the above

Question:

Stock exchange is known as —————– market for securities.

A.

primary market

B.

secondary market

C.

capital market

D.

none of the above

Answer» b. secondary market

Question:

SEBI Act was passed in —————–.

A.

1988

B.

1990

C.

1991

D.

1992

Answer» d. 1992

Question:

A person appointed by a stock broker to assist him in the business of securities tradingis called ————–‐.

A.

sub broker

B.

tarawaniwalas

C.

authorized clerk

D.

none of these

Answer» c. authorized clerk

Question:

Speculators who neither buy nor sell securities in the market but still trade on themare called ———-‐‐.

A.

wolves

B.

stags

C.

bears

D.

none of these

Answer» b. stags

Question:

Member of stock exchanges is called —————‐‐.

A.

stock broker

B.

investor

C.

issuer

D.

none of these

Answer» a. stock broker

Question:

Listing of securities means —————–.

A.

admission of securities of an issuer to trading privileges without a formal agreement with the stock exchange

B.

admission of securities of an issuer to trading privileges on a stock exchange through a formal agreement school of distance education financial markets page 5

C.

admission of securities of an issuer to clearing privileges on a stock exchange without a formal agreement

D.

admission of securities of an issuer to clearing privileges on a stock exchange

Answer» b. admission of securities of an issuer to trading privileges on a stock exchange through a formal agreement school of distance education financial markets page 5

Question:

The holders of which instrument are members of the company and have voting rights?

A.

commercial paper

B.

treasury bill

C.

debenture

D.

equity

Answer» d. equity

Question:

An order for the purchase of securities of a fixed price is known as ————–‐‐‐‐.

A.

limit order

B.

open order

C.

stop loss order

D.

none of these

Answer» a. limit order

Question:

Which of the following is true about mutual fund?

A.

mutual funds are risk-free investments.

B.

mutual funds assure fixed returns.

C.

in mutual funds the target investors are the high-net-worth investors.

D.

none of the above.

Answer» d. none of the above.