Latest Top Capital Marcket Multiple Choice Questions & Anwers

81. If an investment banker has agreed to sell a new issue of securities on a best-efforts basis, the issue
A. Most likely involves an unusually large stock offering.
B. Most likely involves bonds instead of common stock.
C. Results in no assumption of underwriting risk by the investment banker.
D. Most likely involves a well-established, large company.
Ans: C

82. Which was the first Indian company to list on NYSE?
  A) ICICI Bank
  B) Wipro
  C) Tata Motors
  D) Infosys
  Ans: A

83. Which was the first Indian company to list on NASDAQ?
  A) ICICI Bank
  B) Wipro
  C) Tata Motors
  D) Infosys
  Ans: D

84. What is the full form of SEBI?
  A) Stock Exchange Bureau of India
  B) Stock Exchange Board of India
  C) Securities Exchange Bureau of India
  D) Securities and Exchange Board of India
  Ans: D

85. CAC 40 is the prominent stock index of which country?
  A)Germany
  B)France
  C) US
  D)Japan
  Ans: B

86. What is Dollex-30?
  A) Dollar Version of Nifty
  B) Dollar Version of BSE-200
  C) Dollar Version of BSE Sensex
  D) Dollar Version of BSE-100
  Ans: C

87. What is full form of NEAT which is the online trading system of the National Stock Exchange?
  A) Nation’s Exchange for Automated Trading
  B) National Exchange for Automated Trading
  C) Nationwide Exchange for Automated Trading
  D) None of the Above
  Ans: B

88. Which is the oldest exchange in Asia?
  A) National Stock Exchange
  B) Hong Kong Stock Exchange
  C) Bombay Stock Exchange
  D) Tokyo Stock Exchange
  Ans: C

89. NASDAQ stands for…
  A) National Association of Securities Dealers Automated Quotation
  B) National Stocks Data and Automated Quotes
  C) North American Securities Data and Automated Quotations
  D) Nation Association of Securities Dealers Automated Quotation
  Ans: A

90. What does NYSE stands for?
  A) New York Shares Exchange
  B) New York Stock Exchange
  C) New York Sugar Exchange
  D) New York Securities Exchange
Ans: B

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Fresher Capital Marcket Questions And Answers

51) A trading member shall be deemed guilty of un-businesslike conduct for any of the following or similar acts or omissions namely:
 
  A. if it transacts its own business or the business of its constituent in fictitious names
  B. If it makes a fictitious transaction
  C. circulates or causes to be circulated, any rumors;
  D. all of the above
Ans: D

52) A trading member shall be deemed guilty of misconduct if he fails to _______
 
  A. submit its audited accounts to the Exchange
  B. pay its subscription, fees, arbitration charges or any other money which may be due to the exchange
  C. to submit or makes any false or misleading statement in its clearing forms
  D. All of the above
Ans: D

53) Penalties are charged to members for _____________
 
  A. failure to fulfil their funds obligations
  B. failure to fulfil their securities deliverable obligations
  C. Margin Shortages
  D. all of the above
Ans: D



54) The trading members can participate in the Exchange initiated auctions by entering orders as a ______.
 
  A. participant
  B. initiator
  C. solicitor
  D. none of the above
Ans: C

55) The following facility allows the user to have a drop down list of client codes at the account field:
 
  A. Client List Master
  B. Client Database Master
  C. Client Code Master
  D. Client Master Maintenance
Ans: D

56) One of the requirements for admission to membership on the NSE is to pass an on-line examination under NSE’s Certification in Financial Markets (NCFM).
 
  A. True
  B. False
Ans: A

57) Two buy orders enter into the system and are unmatched : 1) 200 shares @ Rs. 72.75 at time 10:30 a.m. 2) 300 shares @ Rs. 72.80 at time 10:31 a.m. Which order will get a priority for getting executed.
 
  A. Order no. 1.
  B. Order no. 2
  C. both will have equal priority
  D. None
Ans: B

58) Two buy orders enter into the system and are unmatched : 1) 200 shares @ Rs. 72.75 at time 10:30 a.m. 2) 300 shares @ Rs. 72.75 at time 10:31 a.m. Which order will get a priority for getting executed.
 
  A. Order no. 1.
  B. Order no. 2
  C. both will have equal priority
  D. none
Ans: A

59) An advertisement released by a trading member can contain a recommendation regarding purchase or sale of any particular share or security of any company. True or False?
 
  A. True
  B. False
Ans: B

60) A preliminary prospectus is known as a
A. golden parachute.
B. red herring.
C. blue sky.
D. green shoe.
Ans: B

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Best Capital Marcket Multiple Choice Questions & Anwers

31) Security sigma means the _______ of the security computed as at the end of the previous trading day.
 
  A. mean
  B. volatility
  C. impact cost
  D. none of the above
Ans: B

32) The branch manager receives End of Day reports for _________.
 
  A. his own orders only
  B. all dealers under the trading member
  C. all the dealers under that branch
  D. any authorized user
Ans: C

33) The pre-set Market price protection percentage is by default set to _____ of the LTP
 
  A. 10%
  B. 2%
  C. 3%
  D. 5%
Ans: D

34) Auction is held in PQR for 10,000 shares. The closing price of PQR on that day was Rs.259.00 The last traded price of PQR on that day was Rs.254.0 The close price of PQR last Friday was Rs.255.00 The previous day's close price of PQR was Rs.264.00 What is the maximum allowable price at which the member can put a sell order in the auction for PQR? (Assume Price Band applicable for Auction market is +/ - 20%)
 
  A. Rs. 316.80
  B. Rs. 390.65
  C. Rs. 364
  D. Rs. 394
Ans: A

35) Securities Delivered Statement: This statement provides information on ______?
 
  A. delivering centre
  B. total number of shares to deliver for each security
  C. quantity delivered and quantity of shares delivered short
  D. all of the above
Ans: D

36) The orders with ______ attribute disclose only a part of the total order quantity to the market.
 
  A. Immediate or Cancel (IOC)
  B. Stop Loss (SL)
  C. Disclosed Quantity (DQ)
  D. none of the above
Ans: C

37) Security wise User Order Quantity Limit (SUOQL) can be modified anytime during trading hours. True or False?
 
  A. True
  B. False
Ans: A

38) Auction Square Up Debit Statement: This report gives details of unauctioned deliveries that are squared-up by the Exchange. True or False?
 
  A. True
  B. False
Ans: A

39) Surveillance and Control (SURCON) is that period after market close during which, the users have _______ only.
 
  A. order entry access
  B. trade cancellation access
  C. trade modification access
  D. inquiry access
Ans: C

40) The stop loss orders are prioritized in the stop loss book with the __________________
 
  A. most likely order to trigger first and the least likely to trigger last.
  B. least likely order to trigger first and the most likely to trigger last.
  C. time-price priority algorithm
  D. none of the above
Ans: A

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Capital Marcket Online Quiz Questions And Answers

21) No payment for transaction in which a Trading Member is taking position as a principal will be allowed to be made from the client’s account?
 
  A. True, unless his clients approves the payment
  B. True
  C. True, only if his clients are making payments on time
  D. False
Ans: B

22) Statement 1 : An active buy order matches with the best passive sell order if the price of the passive sell order is less than or equal to the price of the active buy order. Statement 2 : An passive buy order matches with the best active sell order if the price of the passive buy order is less than or equal to the price of the active sell order. Which of the above statements is True?
 
  A. Statement 2
  B. Statement 1
  C. Both Statement are true
  D. Both Statement are False
Ans: B

23) NSCCL becomes the legal counterparty to the net settlement obligations of every member. This principle is called ______.
 
  A. ‘notation’
  B. ‘settlement fulfillment’
  C. ‘novation
  D. ‘obligation guarantee’
Ans: C

24) The Message Window in the NEAT system allows a user to view messages broadcast by the Exchange such as, __________
 
  A. corporate actions
  B. market news
  C. auctions related information
  D. All of the above
Ans: D

25) ______ can be traded in the Limited Physical Market?
 
  A. Illiquid shares
  B. Futures and Options
  C. Odd lots
  D. Government Securities
Ans: C

26) For liquid securities, the VaR margins are based on the ________ of the Security.
 
  A. volatility
  B. returns
  C. liquidity
  D. exposure limit
Ans: A

27) Upfront margin rates applicable for all securities in Trade for Trade - segment (TT) is ______.
 
  A. 50%
  B. 100%
  C. 200%
  D. 150%
Ans: B

28) The stamp duty on transfer of demat securities has been waived. True or False?
 
  A. True
  B. False
Ans: A

29) In NSCCL, a _______ is a clearing member but not a trading member.
 
  A. self clearing member
  B. participant
  C. broker
  D. custodian
Ans: D

30) Securities and funds pay out takes place on ______ working days after the trade date
 
  A. ‘T+3’
  B. ‘T+2’
  C. ‘T+1’
  D. within 24 hours of sale
Ans: C

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Capital Marcket Multiple Choice Questions & Anwers

11) What does 'OM' indicate as an activity in the 'Activity Log' screen in the NEAT system?
 
  A. Order Matched
  B. Order Cancelled
  C. Trade Modified
  D. Order Modified
Ans: D

12) The clients introduced by an authorized person to a trading member, would be required to deliver securities and make payments directly in the trade name of the trading member. True or False?
 
  A. True
  B. False
Ans: A

13) At the end of the trade cycle, the trades are _______ to determine the obligations of the trading members to deliver securities/funds as per settlement schedule.
 
  A. grossed
  B. aggregated
  C. netted
  D. offset
Ans: C

14) ______ is a volume related order condition.
 
  A. An order with a limit price condition only
  B. An order with a stop loss only
  C. An order with a Disclosed Quantity (DQ)
  D. None of the above
Ans: C

15) 100 share of Reliance Ltd. are purchased on Monday. Provided there are no holidays in between, settlement should take place on ______ ?
 
  A. Wednesday (T+2)
  B. Tuesday (T+1)
  C. Thursday (T+3)
  D. Friday (T+4)
Ans: A

16) A trading member on the NSE, has a branch order value of Rs. 950 lakh for his Mumbai branch and Rs. 600 lakh for Delhi branch. Mumbai branch has two users 'X' and 'Y' with user order value limits of Rs. 300 lakh and Rs. 400 lakh respectively. Delhi branch has one user 'Z' with user order value limit of Rs. 550 lakh. The member applies for a new user at Mumbai. What is the maximum user order value that can be set for the new user?
 
  A. Rs. 100 lakh
  B. Any amount, as there is no restriction on User Order Value
  C. Rs. 250 lakh
  D. Rs. 150 lakh
Ans: C

17) A trading member on the NSE, has set the branch order value unlimited for his Chennai branch and Rs. 800 lakh for Kolkata branch. Chennai branch has two users 'X' and 'Y' with user order limits of Rs. 550 lakh and Rs. 500 lakh respectively. Kolkata branch has one user 'Z' with user order value limit of Rs. 550 lakh. The member applies for a new user at Kolkata. What is the maximum user order value that can be set for the new user?
 
  A. Not more than Rs. 950 lakh
  B. Zero
  C. unlimited
  D. Rs. 250 lakh
Ans: D

18) In case the security has not been traded on a particular day, ________ at the NSE is to be considered as the closing price.?
 
  A. the average closing price for the last one week
  B. the theoretical closing price
  C. the latest available closing price
  D. none of the above
Ans: C

19) Mr. Desai has decided to deposit Rs. 200,000 in the bank annually. If the bank has a policy of continuous compounding and the prevailing interest rate is 8% how much would his deposit grow upto in 2 years?
 
  A. 434,141.15
  B. 413,502.54
  C. 485,123.70
  D. 433,820.81
Ans: D

20) One of the Custodial Trade Reports is the ___________
 
  A. Client Obligation Report
  B. Custodial Trade Pending Confirmation
  C. Clearing Member Report
  D. none of the above
Ans: B

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