Quick and Easy Guides

Advanced Wealth Management Course (IIBF) - Paper 3
Part I: Ch 8: Securities Markets
Q1.
(I) When shares are offered to the public, it is referred to as float. (II) Rights issue where existing investors get additional shares free of cost.
Q2.
A company, whose shares are being traded at Rs. 50, decides to make a 1:2 rights issue at Rs. 20 per share. What should be the theoretical ex-rights price?
Q3.
In a book-built issue, the prospectus that is initially filed with SEBI is called a _________.
Q4.
A ‘Stock split’ is an issue of fully paid up securities to existing shareholders free of cost.
Q5.
A broker’s registration number begins with the letters _____________.
Q6.
The role/s that an investment banker performs in a public issue:
Q7.
A company whose shares are being traded at Rs. 60 announces a 2:3 bonus issue. What would be the theoretical ex-bonus price?
Q8.
S&P CNX Nifty is a well-diversified ________ stocks index accounting for ________ sectors of the economy.
Q9.
Impact cost for CNX junior for a portfolio size of Rs. 50 lakhs is _________.
Q10.
Sensex is a basket of _____________ constituent stocks representing a sample of large, liquid and representative companies listed on the BSE.
Q11.
The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company.
Q12.
The free-float market capitalization of a company is determined by:
Q13.
The exchanges open for trading at ___________ and close at ________.
Q14.
Trades in rolling settlement are settled on a ___________ basis.
Q15.
Which is India’s first specialized company focused upon the index as a core product?
Q16.
“Demutualization” is the process of converting the mutuals into a corporate structure, where ownership, management and trading rights are segregated.
Q17.
The facility, where the bank only earmarks money from the investor’s account – but payment goes to the issuing company is:
Q18.
Pricing of Initial Public Offer (IPO) generally decided by:
Q19.
Issues, where the price is decided based on bids from investors during the issue, are called:
Q20.
When a company’s shares can be traded in the stock exchange, it is said to be a:
Q21.
The promoters would need to invest in at least __________ of the proposed public issue in listed companies.
Q22.
The commission structure for brokers is decided by:
Q23.
In book-built issues, any investor can submit _____ bids to buy shares at or above the floor price.
Q24.
Companies are required to finalise the basis of allotment and refund excess moneys within __________ days from the closure of the issue.
Q25.
The formalities for listing the securities would need to be completed within _______ working days of finalization of basis of allotments.
Q26.
(I) When the underlying shares are reconverted into depository receipts, it is called fungibility. (II) GDR and ADR are securities issued against the support of the underlying shares.
Q27.
Primary market is the market that ensures availability of adequate capital at reasonable rates to finance expansion, diversification or consolidation of companies.
Q28.
(I) Sock Exchange is a part the part of the dealer market. (II) Over-the-Counter (OTC) is a part of an auction market.

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