Quick and Easy Guides

Advanced Wealth Management Course (IIBF) - Paper 3
Part I: Ch 9: Depository & Investment Process
Q1.
The minimum net worth stipulated by SEBI for a depository is _________
Q2.
The process of converting physical securities into electronic form is called Rematerialisation.
Q3.
A company has reported EPS of Rs.5. Similar companies are traded in the market at a multiple of 15 times. What should this company’s share trade at?
Q4.
Where can a company get information about investors holding shares in physical form?
Q5.
(I) A depository is an organization that holds the securities of investors in electronic form at the request of the investor. (II) Banks and leading broking houses offer Depository participants (DP) services.
Q6.
(I) If the writer of the call option owns the asset on which the call is written, it is called a “naked call”. (II) If the writer of the call option does not own the asset on which the call is written, it is called a “covered call”.
Q7.
If the market price is Rs. 20 and the current earnings per share is Rs. 2, then the P/E ratio would be:
Q8.
The price/Earnings ratio (P/E) shows the relationship between the market price of the share and the earnings per share.
Q9.
Who evaluate companies based on their financial statements as presented in the annual report and personal interactions with personal interactions with company personnel?
Q10.
The EDIFAR has been launched by _________ in collaboration with the National Informatics Centre (NIC).
Q11.
The physical securities together with the signed transfer deeds are called:
Q12.
A structure where the investor buys one call at a lower strike price and sells another call on the same underlying at a higher strike price is called:
Q13.
What is a long Straddle?
Q14.
When the share is expected to be range bound, in that situation a butterfly approach is advisable.
Q15.
The structure where the investor buys a call at a higher price and buys a put, on the same underlying at a lower strike price is called:
Q16.
Pay-in day is the day when the exchange makes payment or delivery of securities to the broker.
Q17.
Is it possible to pledge your securities that are held in your demat account?
Q18.
The risk/s involved in holding securities in physical form as blank transfers.
Q19.
The reason/s why investors hold securities in physical form as blank transfers.
Q20.
(I) ISIN (International Securities Identification Number) is a unique identification number for a security that is sought to be dematerialized. (II) The depository would have details of the investors holding securities in electronic form.

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