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1 _______ in the assets of a company is reflected in companys shares.
Ownership
Liability
Partnership
None of the above
2 Shareholders exercise their votes at companys AGM
Equally
If they disagree with the proposal
In proportion to shares held
None of the above
3 Shareholder has no further liability in case of ___ capital
Authorized
Issued
Fully paid
None of the above
4 Companies split shares to make them more
costly
Common
Affordable
None of the above
5 Owners of ______ shares are not real owners of the company.
Equity
Preference

Ordinary
None of the above
6 Owners of only ______ shares are entitled to bonus shares as and when declared by the company
Equity
Preference
Convertible preference
None of the above
7 If you need only a fixed income you need to opt for _____ shares.
Preference
Bonus
Equity
None of the above
8 ____ holders vote at the annual general meeting of the company.
Preference share
Debenture
Equity share
None of the above

9 As compared to fully convertible preference shares, convertible debenture carry ______ rate of inter
Higher
Same
Lower
None of the above
10 ____ chips are shares of established, profitable, dividend paying companies.
Red
Yellow
Blue
None of the above
11 If shares are earning _____ dividend to the owners, they cannot be termed blue chips.
> 15%

< 15%
1% to 25
None of the above

12 In these days of dynamic economic conditions one has to monitor ones investment even in ____ sha
Brides
Widows
Fathers
None of the above

13 If investor wants share price to rise substantially in short term he/she needs to opt for _____ shares
Widows
Optimistc
Wishful
None of the above
14 Normally the rule is higher the risk ___ the return.
Certain is
Lower
Higher
None of the above
15 Pensioners and senior citizens are exposed to unexpected expenses, so they should aim at ___ when
Safety
Liquidity
Return
None of the above
16 Investors at the start of their career need to invest in shares that promise high
Safety
Liquidity
Capital growth
None of the above
17 It is only in _______ that initial investment can grow manifold.

Equity shares
Debentures
Preference shares
None of the above
18 Shares can be encashed overnight after payment of ____ penalty.
1%
Minimum
Zero
19 Shares that are listed on BSE or NSE offer ______ choice to investors.
Selective
Wide
No
None of the above
20 Dividend income on shares, as per current tax laws, is not taxable in
Case shares are held > a year
Case shares are held < a year
All cases.
None of the above

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1 It is recommended that investors should invest _______ funds in shares for income & growth
100% of
Surplus
10% of
None of the above
2 Careful investor in shares can normally expect _____ return each year.
10%
20%
30%
None of the above
3 You need to fix your ____ to decide the kind of shares that you should buy,
Priorities
Safety limits
Expected returns
None of the above
4 Ambitious investors go for _____ to build fortune.
Lemons
Eagles
Average performers
None of the above
5 Shares are purchased with the Midas objective in mind. M in Midas stands for
Marketability
Maturity
Make
None of the above
6 Shares are purchased with the Midas objective in mind. D in Midas stands for
Development
Dividends
Diversification

None of the above

7 When there is a boom in an industry, there would be growth in ____ companies in that industry.
All
Most
Few
None of the above
8 Investment in non diversified company can be prudent if it
Has a monopoly
Faces fierce competition
Has limited share holders
None of the above
9 In share selection
Small is beautiful
Bigger the better
Size is immaterial
None of the above
10 In share selection investor should opt for larger company, as it has
No diversity
Multi product
Single product
None of the above
11 In share selection investor should opt for larger company, that has net worth of
> 100 crores
< 100 crores
On average 50 crores
None of the above
12 Dividends large companies pay are usually ___ due to size of capital they have to service.
Lower

Higher
Average
None of the above
13 If a share price falls from say Rs 1500/- to Rs. 1000/-, it is expected that the price
Would never reach Rs 1500/- again
Would stay at Rs 1000/- forever
Can get back to Rs 1500/- over a time
None of the above
14 Large volumes of purchases or sales are accompanied by _____ prices.
Steady
Decline in prices
Marked rise or fall in
None of the above
15 If the shares fall in value with rise in volume it would be prudent
To sell shares
To wait a while before selling
To hold on to shares
None of the above
16 Investment in a smaller company can be profitable, if the _____ of its products is very high.
Volume
Price
Quality
None of the above
17 Closely held companies are those that normally have _____ share holders.
> 15000
< 15000
Handful
None of the above
18 Profit through arbitrage is possible if investor trades in a share that is

Unlisted
Listed on only main exchange
Listed on more than one exchange
None of the above
19 Shares that are traded ______ are called active shares.
Each day
At least once a week
At least each month
None of the above
20 Prudent investor_______ when there are sudden changes in price in any direction.
Immediately buys shares
Quickly sells shares
Waits and watches
None of the above

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1 _______ role has become extinct due to computerization of stock exchange transactions & start of on
Brokers
Jobbers
Agents
None of the above
2 For sale & purchase of shares in demat form, investor needs first to register with
Depository participant [DP]
National Securities Depository Ltd. [NSDL]
Central Securities Depository Ltd. [CSDL]
None of the above
3 Brokers charge retail investors, commission at ________ for executing their buy or sell instructions.
to 1 %
2 to 3 %
0 to %
None of the above
4 It is possible for you to instruct broker to buy or sell at
Market price
At price limits determined by you
Any one of the above
None of the above
5 In a principal to principal trade, investor buys/sells shares to
The exchange
His/her broker
The bank
None of the above
6 Brokers are required to punch investors buy instructions
Immediately on receipt
When prices are the lowest
Before days trade closes

None of the above

7 Derivatives were first introduced on Indian stock exchange in the year
1990
2000
2005
None of the above
8 In a futures contract the holder has
A right but no obligation
An obligation but no right
Both right and an obligation
None of the above
9 A call option entrusts on the holder a right to
Buy
Sell
Both buy or sell
None of the above
10 An investor can purchase or sell ______ options & futures
Stock based
Index based
Any of the above
None of the above
11 When the purchaser does not exercise a call option, he/she
Pays agreed price
Receives agreed price
Loses the premium paid
None of the above
12 Sensex stands for
Sensitivity Index of NSE

BSE Sensitivity Index

Index of BSE & NSE together
None of the above
13 Futures trade allows you to trade in ______ shares with the same capital.
More
Lesser
Same amount of
None of the above
14 The amount of possible loss is limited when one enters into ______ contract.
An option
A future
Either future or option
None of the above
15 In case of stock options, the right of the holder is exercised
Initially
Only on expiration date
Anytime before expiration date
None of the above
16 Premium or discount for each option reflects what _____ feels about future price trends.
Buyer
Seller
Market
None of the above
17 Investors can make quick gains if the Initial Public Offer [IPO] is
Fully subscribed
Undersubscribed
Oversubscribed
None of the above
18 There is _____ brokerage involved if you purchase shares in Initial Public Offer.

Nil
High
Small
None of the above
19 Companies with sound dividend track record & accumulated reserves issue bonus shares
Below market price
At market price
Free of cost
None of the above

20 When a company offers shares for sale to its existing shareholders only, the offer is termed ___ issue
Bonus
Rights
Preferential
None of the above

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1 One should buy a stock after knowing ____ about the company that issues it.
Certain minimum
As much as possible
Very little
None of the above
2 At micro level, investor must scrutinize financial information of ______ before deciding to invest.
Economy
Industry
Company
None of the above
3 The financial data can be gathered before investment from sources that are
Very few
Restricted
Widely available
None of the above
4 Upon receipt of insider information not publicly known one should invest
After due study
After checking with colleagues
Very quickly
None of the above
5 Brokers advice on investment in shares always has _____ bias.
Short term
Long term
Negative
None of the above
6 Rigid, Orthodox, Traditional companies are ___ _____ controlled.
Majority
Minority
Family

None of the above

7 Before investing in professionally managed companies investor should ensure there is no ______
In-fighting
Composition
Consolidation
None of the above
8 Investor should look for companies that have
Innovation
Infighting
Invention
None of the above

9 In professionally managed companies management team does not have a _____ stake in the company
Long term
Financial
Short term
None of the above
10 Chances of investors receiving regular dividends & bonus issues are less in _____ companies.
Family managed
Multi national
Professionally managed
None of the above
11 When considering investment in a company, investor must check _____ of its management.
Competence
Depth of knowledge
Integrity
All of the above
12 Acting on tips may not yield profit to investor due to _______ in receipt of the tip.
Speed

Time lag
Source involved
None of the above
13 As soon as a tip is received, investor must act on it.
True
False
14 One can identify a budding leader in an industry by
Examining superiority of products
Listening to market gossip
Watching established leaders
None of the above
15 One can identify a budding leader in an industry by
Looking for a company with monopoly
Listening to market gossip
Watching established leaders
None of the above
16 If entry into an industry is easy, it indicates investor should ______ companies in that industry.
Invest with short term stake in
Not invest in
Invest with long term stake in
None of the above
17 One should invest in companies from ______ industry in view of its high growth.
Electronics & computer
Jute & textiles
Leasing
None of the above
18 Lack of substitute product in the industry ___ investors.
Attracts

Distracts
Has no effect on
None of the above
19 With liberalization, the role of government policy on profits of companies
Has lost importance
Has become more important
Has turned negative
None of the above

20 If the rate of inflation in the country from where a company is importing is high, then its profits are
Positively
Adversely
Not
None of the above

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