Quick and Easy Guides

NISM Securities Markets Foundation Certification Examination
Introduction to Securities Markets
Q1.
The group of market participants that collectively facilitate interaction between investors and issuers is known as
Q2.
The main objective of SEBI is to facilitate growth and development of the capital markets and to ensure that the interests of investors are protected
Q3.
A mutual fund that collects money from investors and invests in the market is an example of
Q4.
The financial results of a company show that it has suffered losses due to declining market share. The price of its equity share drops in the market. This is an example of the role of the
Q5.
The Intermediary who manages the transactions pertaining to delivery of securities and money after a trade through the broker, and also keeps the accounts of securities and money is
Q6.
The securities that are already issued are available for subsequent purchases and sales at:
Q7.
RBI controls and regulates the government securities market.
Q8.
The Acts and rules & regulations framed mainly for regulating the functioning of the corporate sector in accordance with law is done by:
Q9.
(I) Debenture trustees are appointed to ensure that the lenders interests are protected. (II) Mutual fund trustees are appointed to supervise the asset managers.
Q10.
(I) Stock brokers maintain the record of investors for the issuer. (II) Brokers and banks offer Depository participants services to investors.
Q11.
Merchant bankers also called as issue managers, investment bankers or lead managers.
Q12.
The Intermediary who promise to pick up that portion of an offer of securities which may not be bought by investors.
Q13.
(I) Government agencies may issue equity securities. (II) Mutual funds issue units of a scheme to investors to mobilize money and invest them on behalf of investors in securities.
Q14.
Companies may issue equity or debt securities for their capital needs beyond their normal sources of funding from deposits and government grants.
Q15.
The system which allows borrowers to raise capital at an efficient price, and investors to minimize the risk of being defrauded is done by:
Q16.
SEBI has the powers to call for information, summon persons for interrogation, examine witnesses and conduct search and seizure.
Q17.
(I) The primary market, also called the stock exchange facilitates trade in already-issued securities. (II) The secondary market is also called the new issue market.
Q18.
(I) A security is a non-marketable instrument. (II) A security represents the terms of exchange of money between two parties.
Q19.
Receiving funds and securities for completed transactions and settling the payment of money and delivery of securities is done by:
Q20.
(I) Asset Management companies are permitted to offer securities that represent participation in a pool of money. (II) Portfolio managers do not offer any security and are not permitted to pool the money collected from investors
Q21.
(I) Bank deposits, inter-corporate deposits, company fixed deposits, deposits with housing finance and other finance companies, chit funds and benefit funds are all not securities. (II) Insurance policies are securities and are not contract.
Q22.
Securities can be broadly classified into equity and debt.
Q23.
Under which Act the definition of securities is laid down in section 2 (h) of the Securities Contracts.
Q24.
(I) Investors and issuers are the main building blocks of a securities market. (II) The Registrars and Transfer Agents, Custodians and Depositories are capital market intermediaries.
Q25.
(I) Custodians are usually large banks. (II) Stock brokers are registered trading members of stock exchanges.
Q26.
Which Intermediary enables investors to hold and transact in securities in the dematerialized form:
Q27.
Under which act, SEBI is the chief regulator of securities markets in India
Q28.
(I) SEBI is the issue manager for the government. (II) RBI has set up surveillance mechanisms, both internal and at stock exchanges.
Q29.
Both Asset managers and portfolio managers charge the investor a fee for their services, and may engage other security market intermediaries such as brokers, registrars, and custodians in conducting their functions.
Q30.
Local governments and municipalities may issue debt securities to meet their development needs.
Q31.
(I) Institutional investors are educational institutions that educate investors (II) Retail investors are individual investors who invest money on their personal account.
Q32.
The primary function of the securities market is:
Q33.
Which Intermediary helps an issuer access the security market with an issuance of securities.
Q34.
All secondary market transactions on stock exchanges may not be conducted through registered brokers.
Q35.
Which Intermediary provides a professional opinion about the ability of the issuer to meet the obligations for payment of interest and return of principal as indicated in the security.

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