Tuesday, May 12, 2015

Day 26 - Questions


Day 26 - Capital Market - Part I

( Primary and Secondary Market, Different type of Issues - IPO, FPO, Rights Issue, Preferential Issue, etc. )


Recommended Study links - (Go through these topics before attempting MCQs)


1.  Which of the following body is the regulator of Capital Market
a.  Reserve Bank of India (RBI)
b.  Securities and Exchange Board of India (SEBI)
c.  Telecom Regulatory Authority of India (TRAI)
d.  NABARD

2.  Which of the following is/are instrument(s) of Capital Market?
a.  Equity instruments - stocks/shares, dividends etc.
b.  Debt instruments - bonds, debentures, etc.
c.  Both (a) and (b)
d.  None of the above

3.  If an investor is directly buying shares or bonds from a company, then he is dealing in -
a.  Primary Market
b.  Secondary Market
c.  Both (a) and (b)
d.  None of the above

4.  If an investor is buying / selling shares or bonds from other investors, rather than the issuing company, then he is dealing in -
a.  Primary Market
b.  Secondary Market
c.  Both (a) and (b)
d.  None of the above

5.  What is the full form of IPO?
a.  Initial Private Offering
b.  Initial Partnership Offering
c.  Initial Public Offering 
d.  Interest Private offering

6.  When a private company first time issues shares to the public, then it is known as -
a.  IPO 
b.  FPO
c.  Rights Issue
d.  Preferential Issue

7.  Follow-On Public Offering (FPO) by a company is done after -
a.  IPO 
b.  Rights Issue
c.  Preferential Issue
d.  None of the above

8.  FPO deals in the -
a.  Primary Market 
b.  Secondary Market 
c.  Money Market
d.  None of the above

9.  Rights Issue is offered to -
a.  general public
b.  existing shareholders 
c.  CEO of the company
d.  other companies

10.  Preferential Issue is offered to -
a.  selected people who already has a stake in the company
b.  selected people who doesn't have a stake in the company 
c.  selected people who may or may not have stake in the company
d.  none of the above

11.  Which of the following issue doesn't dilute the overall percentage stake of the company?
a.  IPO
b.  FPO
c.  Rights Issue 
d.  Preferential Issue

12.  A company is listed for the first time on a stock exchange, after -
a.  IPO 
b.  FPO
c.  Rights Issue
d.  Preferential Issue

13.  Stock Exchanges generally work in - 
a.  Primary Market
b.  Secondary Market 
c.  Money Market
d.  None of the above

14.  Which of the following is not a Stock Exchange?
a.  NASDAQ
b.  BSE and NSE
c.  Deutsche Bourse
d.  All are stock exchanges

15.  Which of the following is a stock exchange of India?
a.  NSE
b.  NYSE
c.  HKSE
d.  None of the above



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