FINANCIAL AWARENESS QUIZ 8 for SEBI and Other Regulatory Body Exams

Please enter your email:

1. …………..is a measure of the dispersion of returns around the mean.

Variance

Covariance

Correlation

Expected return

None of the above

2. The actual market value of a right will differ from its theoretical value for all of the following regions except for :

The size of the firms marginal tax rate

the amount of transaction costs incurred.

investor speculation

the regular exercise and sale of rights over the subscription period

None of the above

3. In a common stock rights offering the subscription price is generally:

set equal to the current market price of the stock

set below the current market price of the stock

set above the current market price of the stock

set after the stock goes ex-rights

None of the above

4. Latter stock is

a handwritten certificate representing a corporate IOU

a mass mailing offering a security for sale

securities issued by the United States Postal service

privately placed common stock that cannot be immediately resold to the general public

None of the above

5. A preliminary prospectus is known as a

golden parachute

red herring

blue sky

green shoe

None of the above

6. If an investment banker has agreed to sell a new issue of securities on a best- efforts price basis, the issue

most likely involves an unusually large stock offering

most likely involve bonds instead of common stock

results in no assumption of underwriting risk by the investment banker

most likely involves a well-established large company

None of the above

7. Which of the following is component of capital market?

Equity market

Debt market

Derivative market

All of the above

None of the above

Which organisation regulates capital market?

Government of India

RBI

SEBI

None of the above

Any of the above

9. In capital markets, which of the following are the major suppliers of trading instruments?

liquid corporations

instrumental corporations

manufacturing corporations

government and corporations

None of the above

10. Price of underlying asset is added into intrinsic value of option to calculate which of the following?

forward price of option

exercise price of option

book value of option

spot price of option

None of the above

11.

Financial institutions having loans swapped for bonds can sell all bonds in which of the following?

under-developed markets

developed markets

primary markets

secondary markets

None of the above