Stock Market

Q.

Explain the steps in trading procedure on stock exchange.

Q.

How does money solve the problem of double coincidence of wants? Explain with an example of your own.

Q.

Reshu's father has gifted her shares of a large cement company, with which he had been working. The securities were in physical form. She already has a bank account and does not possess any other forms of securities. She wished to sell the shares and approached a registered broker for the purpose. Mention one mandatory detail which she will have to provide with the broker.

1. Identity Card

2. Permanent Account Number

3. None of the above

4. Emai Id

Q.

___ refers to manipulating the prices of securities with the main objectives of inflating or depressing the market price of securities.

1. Price structure

2. Price fixing

3. Price rigging

4. None of the above

Q.

What are the functions of a stock exchange?

Q.

A stock exchange requires less investment as the value of securities is generally low. State true or false.

1. True

2. False

Q.

Arrange the steps in the procedure for an investor who wants to buy securities on a stock exchange:

1. Selection of broker
2. Opening Demat account with a depository

3. Place the order with the broker

4. Settlement

5. Execution of order by the broker on the instruction of the investor

1. 1, 3, 2 , 4 & 5

2. 1, 2, 4, 3 & 5

3. 1, 4, 2 , 3 & 5

4. 1, 2, 3, 5 & 4

Q. The ________ market is also known as the stock market or stock exchange, which is the market for the purchase and sale of existing securities.

1. capital
2. primary
3. money
4. secondary

Q. What are the functions of Stock Exchange?

Q. Where the agent discloses that he is merely an agent but conceals the identity of his principal, he is not personally liable, the principal, on being discovered, will be responsible for the contract made by the agent.

1. True
2. False
3. Partly true
4. None of the above

Q. With a view to make the benefits of investing in the money market available to small investors, the RBI Set up _______________.

1. Insurance Companies
2. Regional Rural Banks
3. The Unit Trust of India
4. Industrial Development Bank of India
5. Money Market Mutual Funds

Q.

"Stock market quotations contribute to better allocation of capital and promotion of the habits of savings and investment". State true or false.

1. True

2. False

Q. Which of the following is NOT a legal requirement for opening a bank account of a limited company?

1. Copy of Memorandum of Association
2. Copy of Article of Association
3. Certificate of Incorporation
4. Specimen signatures of all the directors

Q. 'The stock exchange performs many vital functions in today's commercial world'. Explain any three such functions.

Q.

what is the meaning of equity cult?

Q. Which one of the following statements concerning mercantile agent is NOT true ?

1. Agents engaged for a single transaction are unlikely to be classified as mercantile agents.
2. Self employed agents will not be classified as mercantile agents.
3. Agents involved in the provision to by goods will be classified as mercantile agents.
4. Agents that do not have power to negotiate on this principal's behalf will not be classified as mercantile agent.

Q. The stock exchange can play a vital role in ensuring wider share ownership by regulating new issues, better trading practices etc. Identify the function which explains this ___________ .

1. Pricing of Securities
2. Spreading of Equity Cult
3. Safety of Transaction
4. Contributes to Economic Growth

Q. Investors have only buying option in the primary market.

1. True
2. False

Q. The primary market is also known as new issue market.

1. True
2. False

Q. Which of the following is the basic function of stock exchange?

1. Pricing of Securities
2. Safety of Transaction
3. Contributes to Economic Growth
4. Providing Liquidity and Marketability to Existing Securities.

Q. The strategic objective of Bombay stock exchange are __________.

1. To promote, develop and maintain a well-regulated market for dealings in securities.
2. All of the above
3. To promote industrial development in the country through efficient resource mobilization by way of investment in corporate securities.
4. To safeguard the interest of members and the investing public having dealings on the exchange.

Q. Agent who is authorized to sell goods or consign goods for the purpose of sale or to buy goods or to raise money on the security of goods is known as ______.

1. Special agent
2. General agent
3. Universal agent
4. Mercantile agent

Q. Select the proper option from the options given below and rewrite the completed sentences.

In a partnership firm every partner is the principal as well as the ________.
(a) agent
(b) karta
(c) partner

Q. Three Mark Questions:-
Differentiate between Capital Market and Money market on the basis of
(i) Investment Outlay,
(ii) Safety and
(iii) Liquidity.

Q.

___ may be individuals, partnership firms or corporate bodies. They are the intermediaries between the buyers and sellers of securities.

1. Depository Participants

2. Brokers

3. Sub contractors

4. None of the above

Q. _______ means the admission of securities of a company to trading on a stock exchange.

1. Listing
2. 'Demat'ing
3. 'Remat'ing
4. None of the above

Q. Under Private Placement Company sells securities to some selected institutions. From the following identify such institution.

1. LIC
2. UTI
3. All of these
4. GIC

Q.

___ refers to manipulating the prices of securities with the main objectives of inflating or depressing the market price of securities.

1. Price structure

2. Price rigging

3. Price fixing

4. None of the above

Q. "Stock market quotations contribute to better allocation of capital and promoting the habits of savings and investments". Explain.

Q. Explain any three functions of 'Stock Exchange'?