1. ---------- refers to the process of creating an artificial condition in market
in order to push price of particular shares.
Correct : D. Rigging
2. An attempt to gaining short term profit from the price difference or
movements of securities are called
Correct : B. Speculation
3. Companies (Amendment) bill-1999 restricts buy back of shares up
to........... of the paid up capital
Correct : B. 20%
4. The conditions to be satisfied by a public company for issuing Right
shares are specified in --------------of Companies Act.1956
Correct : C. 79 c. Sec.81
5. As per SEBI guidelines, a new company which has not completed 12
months commercial productions has to issue shares at -------
Correct : C. Par
6. -------- are eligible to list in OTCEI
Correct : D. Small and Medium size companies which are not listed in any other
7. --------- group includes shares of companies which have failed to comply
with listing requirements
Correct : D. Z group
8. Shares of well established and financially sound compnies,with very little
investment risk and good history of earnings is known as
Correct : B. Blue chip shares
9. In a stock exchange where the ownership, management and trading are
concentrated in a single group, it is called
Correct : A. Mutual exchange
10. The process in which illiquid assets are converted into marketable
securities is known as
Correct : D. Securitisation
11. Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest (SARFAESI) Act passed in the year
Correct : B. 2002
12. ------ is the venture capital assistance at the stage where the project
started to fetch profit but not reached in its full efficiency
Correct : B. Mezzanine capital
13. A merchant bank can claim a charge ------- % as the commission for the
whole issue
Correct : C. 0.5%
14. ----------- is the process of converting security in electronic form into
physical form
Correct : A. Rematerialisation
15. ----------- is dealing in securities done by those who having access to price
sensitive information.
Correct : B. Insider trading
16. --------- is a calculated move with an expectation to reap huge profit from
market fluctuations
Correct : B. Speculation
17. 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
Correct : C. Green shoe option
18. -------- is an offer document is used in public issue made under book
building method.
Correct : A. Red herring prospectus
19. A system of security trade in which one is allowed to invest in excess of
his financial capacity by borrowing funds
Correct : A. Margin trading
20. -------- means temporary halt of trade in stock exchanges whenever index
moves upward or downward beyond the specified limits
Correct : C. Circuit breaking
21. Non-voting shares were introduced by Companies (Amendment) bills in
the year
Correct : A. 1997
22. in the case of -------- bonds, the value is inversely related to short term
interest rates.
Correct : B. Inverse float bonds
23. Which of the following is /are example of primary or direct financial
instrument
Correct : D. Debentures
24. Which of the following is /are example of Secondary or indirect financial
instrument
Correct : C. Post office saving deposit
25. The period at which a Fixed Price Public issue is required to kept open is
Correct : C. 3-10 Working days
26. The period at which a Book Building issue is required to kept open is
Correct : A. 3-7 Working days
27. Maximum time limit for the allotment of shares or refund order in case of
public issue is
Correct : B. 30 days of closure of issue
28. Which of the following is not a mode of long term financing?
Correct : B. Factoring
29. Which of the following is /are considered as modes of short term finance
Correct : D. All of these
30. The security trade which takes place outside the trading floor of stock
exchange or beyond the business hours are known as
Correct : D. Grey market deals
31. Those option which can be exercised only on the expiration date is known
as------ option
Correct : C. European
32. Those option which can be exercised on any day on or before the
expiration date is known as------ option