McqMate
These multiple-choice questions (MCQs) are designed to enhance your knowledge and understanding in the following areas: Bachelor of Commerce (B Com) , Bachelor of Business Administration in Finance (BBA Finance) , Union Public Service Commission (UPSC) .
| 301. |
---------- refers to the process of creating an artificial condition in market in order to push price of particular shares. |
| A. | Cornering |
| B. | Arbitrage |
| C. | Option deal |
| D. | Rigging |
| Answer» D. Rigging | |
| 302. |
An attempt to gaining short term profit from the price difference or movements of securities are called |
| A. | Investment |
| B. | Speculation |
| C. | Hedging |
| D. | All the above |
| Answer» B. Speculation | |
| 303. |
Companies (Amendment) bill-1999 restricts buy back of shares up to........... of the paid up capital |
| A. | 50% |
| B. | 20% |
| C. | 25% |
| D. | 60% |
| Answer» B. 20% | |
| 304. |
The conditions to be satisfied by a public company for issuing Right shares are specified in --------------of Companies Act.1956 |
| A. | Sec.75 |
| B. | S |
| C. | 79 c. Sec.81 |
| D. | Sec.91 |
| Answer» C. 79 c. Sec.81 | |
| 305. |
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 |
| Answer» C. Par | |
| 306. |
-------- 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 |
| Answer» D. Small and Medium size companies which are not listed in any other | |
| 307. |
--------- 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 |
| Answer» D. Z group | |
| 308. |
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 |
| Answer» B. Blue chip shares | |
| 309. |
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 |
| Answer» A. Mutual exchange | |
| 310. |
The process in which illiquid assets are converted into marketable securities is known as |
| A. | Mutualisation |
| B. | Dematerialisation |
| C. | Rematerialisation |
| D. | Securitisation |
| Answer» D. Securitisation | |
| 311. |
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act passed in the year |
| A. | 1992 |
| B. | 2002 |
| C. | 2005 |
| D. | 2000 |
| Answer» B. 2002 | |
| 312. |
------ is the venture capital assistance at the stage where the project started to fetch profit but not reached in its full efficiency |
| A. | Start up capital |
| B. | Mezzanine capital |
| C. | Bridge capital |
| D. | Seed capital |
| Answer» B. Mezzanine capital | |
| 313. |
A merchant bank can claim a charge ------- % as the commission for the whole issue |
| A. | 5% |
| B. | 2.5% |
| C. | 0.5% |
| D. | 0.25% |
| Answer» C. 0.5% | |
| 314. |
----------- is the process of converting security in electronic form into physical form |
| A. | Rematerialisation |
| B. | Dematerialisation |
| C. | Demutualisation |
| D. | Mutualisation |
| Answer» A. Rematerialisation | |
| 315. |
----------- is dealing in securities done by those who having access to price sensitive information. |
| A. | Margin trading |
| B. | Insider trading |
| C. | Price rigging |
| D. | Wash sales |
| Answer» B. Insider trading | |
| 316. |
--------- is a calculated move with an expectation to reap huge profit from market fluctuations |
| A. | Gambling |
| B. | Speculation |
| C. | Genuine investment |
| D. | None of the above |
| Answer» B. Speculation | |
| 317. |
The scheme in which company can allot shares not more than 15% of the issue size, to the public in addition to the shares already offered- is called |
| A. | Right issue |
| B. | ESOPs |
| C. | Green shoe option |
| D. | Bonus issue |
| Answer» C. Green shoe option | |
| 318. |
-------- is an offer document is used in public issue made under book building method. |
| A. | Red herring prospectus |
| B. | Abridged prospectus |
| C. | Statement in lieu of prospectus |
| D. | Shelf prospectus |
| Answer» A. Red herring prospectus | |
| 319. |
A system of security trade in which one is allowed to invest in excess of his financial capacity by borrowing funds |
| A. | Margin trading |
| B. | Cornering |
| C. | Rigging |
| D. | Arbitrage |
| Answer» A. Margin trading | |
| 320. |
-------- means temporary halt of trade in stock exchanges whenever index moves upward or downward beyond the specified limits |
| A. | Laddering |
| B. | Cornering |
| C. | Circuit breaking |
| D. | Side by siding |
| Answer» C. Circuit breaking | |
| 321. |
Non-voting shares were introduced by Companies (Amendment) bills in the year |
| A. | 1997 |
| B. | 1999 |
| C. | 2000 |
| D. | 2002 |
| Answer» A. 1997 | |
| 322. |
in the case of -------- bonds, the value is inversely related to short term interest rates. |
| A. | Fixed rate bonds |
| B. | Inverse float bonds |
| C. | Perpetual bonds |
| D. | Option bonds |
| Answer» B. Inverse float bonds | |
| 323. |
Which of the following is /are example of primary or direct financial instrument |
| A. | Fixed deposit receipt |
| B. | Insurance policies |
| C. | Mutual fund Unit |
| D. | Debentures |
| Answer» D. Debentures | |
| 324. |
Which of the following is /are example of Secondary or indirect financial instrument |
| A. | Equity shares |
| B. | Preference shares |
| C. | Post office saving deposit |
| D. | Bonds |
| Answer» C. Post office saving deposit | |
| 325. |
The period at which a Fixed Price Public issue is required to kept open is |
| A. | 3-7 Working days |
| B. | 5-14 Working days |
| C. | 3-10 Working days |
| D. | 7-21 Working days |
| Answer» C. 3-10 Working days | |
| 326. |
The period at which a Book Building issue is required to kept open is |
| A. | 3-7 Working days |
| B. | 5-14 Working days |
| C. | 3-10 Working days |
| D. | 7-21 Working days |
| Answer» A. 3-7 Working days | |
| 327. |
Maximum time limit for the allotment of shares or refund order in case of public issue is |
| A. | 15 days of closure of issue |
| B. | 30 days of closure of issue |
| C. | 45 days of closure of issue |
| D. | 60 days of closure of issue |
| Answer» B. 30 days of closure of issue | |
| 328. |
Which of the following is not a mode of long term financing? |
| A. | Venture capital |
| B. | Factoring |
| C. | Forfaiting |
| D. | Bonds issue |
| Answer» B. Factoring | |
| 329. |
Which of the following is /are considered as modes of short term finance |
| A. | Bill discounting |
| B. | Factoring |
| C. | Advances from customers |
| D. | All of these |
| Answer» D. All of these | |
| 330. |
The security trade which takes place outside the trading floor of stock exchange or beyond the business hours are known as |
| A. | Option deals |
| B. | Bought out deals |
| C. | Buy out deals |
| D. | Grey market deals |
| Answer» D. Grey market deals | |
| 331. |
Those option which can be exercised only on the expiration date is known as------ option |
| A. | American |
| B. | Double |
| C. | European |
| D. | Swaption |
| Answer» C. European | |
| 332. |
Those option which can be exercised on any day on or before the expiration date is known as------ option |
| A. | American |
| B. | Double |
| C. | European |
| D. | Swaption |
| Answer» A. American | |
| 333. |
NFO is the term related with |
| A. | Fresh issue of shares |
| B. | Follow on issue of shares |
| C. | Issue of mutual funds units |
| D. | Non- fresh offer of shares |
| Answer» C. Issue of mutual funds units | |
| 334. |
‘Kerb trading’ is related with-------- |
| A. | Bills discounting |
| B. | Hire Purchase |
| C. | Stock exchange |
| D. | factoring |
| Answer» C. Stock exchange | |
Done Studing? Take A Test.
Great job completing your study session! Now it's time to put your knowledge to the test. Challenge yourself, see how much you've learned, and identify areas for improvement. Don’t worry, this is all part of the journey to mastery. Ready for the next step? Take a quiz to solidify what you've just studied.