Chapter: Prospectus
1.

When there is a untrue statement in a prospectus who can sue

A. Subscribed in primary market
B. Subscribed in secondary market
C. Rights issue
D. None of the above
Answer» A. Subscribed in primary market
2.

Definition of prospectus was given under which sec.

A. 2 (30)
B. 2 (32)
C. 2 (34)
D. 2 (36)
Answer» D. 2 (36)
3.

Which of the following are not required to issue prospectus?

A. Private company
B. In case of right issue
C. Sweat equity issue
D. All the above
Answer» D. All the above
4.

_______are the prospectus issued instead of full prospectus

A. Abridged
B. Statement in lieu
C. Shelf
D. Red herring
Answer» A. Abridged
5.

Which one of the following has a right to claim compensation for any loss due to misstatement in prospectus

A. Purchasing shares in Primary Market
B. Secondary Market
C. Subscribers to memo.
D. All the above
Answer» A. Purchasing shares in Primary Market
6.

_______ years of imprisonment will be imposed in case of issue of prospectus with untrue statements

A. 1
B. 2
C. 3
D. 4
Answer» B. 2
7.

What is the liability not delivering that can be imposed for statement in lieu of prospectus_________

A. Fine – 10,000
B. Imprisonment – 2 years
C. Both (a) & (b)
D. None of the above
Answer» A. Fine – 10,000
8.

_______ are the prospectus issued by the issuing house

A. Deemed prospectus
B. Shelf prospectus issued by the issuing house
C. Red herring
D. None of the above
Answer» A. Deemed prospectus
9.

_________ prospectus were issued in case securities were issued in stages

A. Deemed
B. Shelf
C. Red herring
D. None of the above
Answer» B. Shelf
10.

________are required to file prior to making second and subsequent issue of securities in case shelf prospectus are filed:

A. Information memorandum
B. Information articles
C. Form 13
D. None of the above
Answer» A. Information memorandum
11.

Information memorandum + shelf prospectus together constitutes ________

A. Memorandum
B. Articles
C. Prospectus
D. None of the above
Answer» C. Prospectus
12.

Validity period of information memorandum is _______

A. 1 year
B. 2 years
C. 3 years
D. 4 years
Answer» A. 1 year
13.

_________ prospectus were issued in order to test the market before finalizing issue size/ price.

A. Deemed
B. Shelf
C. Red herring
D. None of the above
Answer» C. Red herring
14.

What is the punishment for directors, promoters and other persons for Misrepresentation in prospectus

A. Fine 50,000
B. 2 years imprisonment
C. Both of the above
D. None
Answer» C. Both of the above
15.

When a private company is converted into public company. In which form it should be

A. Schedule III
B. Schedule IV
C. Schedule VI
D. None of these
Answer» B. Schedule IV
16.

A statement in lieu of prospectus is required to be issued

A. by all companies which issue shares or debentures
B. by public companies when shares are issued among friends and relatives
C. by private companies as they do not issue shares to the public
D. by all companies
Answer» B. by public companies when shares are issued among friends and relatives
Tags
  • Question and answers in Prospectus,
  • Prospectus multiple choice questions and answers,
  • Prospectus Important MCQs,
  • Solved MCQs for Prospectus,
  • Prospectus MCQs with answers PDF download