Welcome to your International Navodaya Chamber of Commerce (INCOC) Platform ! Subject: Securities MarketsTotal Number of Question: 40Time: 41 MinutesPlease check your email after completion of test for result.All the best... Name Phone No Email State 1. What is the primary purpose of a stock exchange? To regulate interest rates To issue government bonds To facilitate the buying and selling of securities To provide loans to investors None 2. What does IPO stand for? Initial Public Offer Investment Public Opportunity Internal Price Offer Independent Portfolio Option None 3. What is a mutual fund? A government bond A pooled investment vehicle A type of equity share A savings account with banks None 4. Which organization regulates the securities market in India? RBI SEBI IRDAI Ministry of Finance None 5. What is the full form of SEBI? Securities and Exchange Bureau of India Securities and Exchange Board of India Stock Exchange Board of India Securities Equity Board of India None 6. What is a debenture? An equity share A fixed-income security issued by a company A government security A mutual fund scheme None 7. Which market deals with short-term financial instruments? Capital Market Money Market Derivatives Market Primary Market None 8. What is the minimum age to open a Demat account in India? 18 years 21 years No minimum age 16 years None 9. What is the settlement cycle in Indian stock markets? T+1 T+2 T+3 T+4 None 10. What is market capitalization? Total number of shares issued by a company Market value of a company’s outstanding shares Book value of a company Share price multiplied by company profits None 11. Which index is used to measure the performance of 50 large companies in India? BSE Sensex Nifty 50 NSE All-Share Index CNX Midcap None 12. What is insider trading? Illegal trading based on non-public information Trading by retail investors Intraday trading of securities Trading after market hours None 13. Which financial instrument derives its value from an underlying asset? Bonds Derivatives Mutual Funds Fixed Deposits None 14. What is the role of a Depository Participant (DP)? To issue stocks To act as an intermediary between investors and depositories To underwrite IPOs To audit listed companies None 15. What does the term "blue-chip stocks" refer to? Stocks of financially stable and well-established companies Penny stocks Startup companies' stocks Stocks with a blue logo None 16. What is a derivative contract that obligates the buyer to purchase the underlying asset at a predetermined price? Futures contract Options contract Mutual Fund Equity share None 17. Which of the following is a primary market activity? IPO Trading in secondary markets Mutual fund redemption Intraday trading None 18. What is the main function of a credit rating agency? To audit financial statements To evaluate the creditworthiness of borrowers To regulate stock exchanges To issue corporate bonds None 19. What does NAV in mutual funds stand for? Net Asset Value Nominal Asset Value Non-Asset Value Neutral Asset Volume None 20. What is a ‘bear market’? A market with rising prices A market with falling prices A stagnant market A market with high volatility None 21. What is the full form of FPI? Foreign Portfolio Investment Fixed Price Investment Future Price Index Financial Performance Indicator None 22. What is the minimum investment required in an ELSS mutual fund to claim tax benefits? ₹1,000 ₹10,000 ₹50,000 No minimum requirement None 23. What is a GDR? Government Debt Reserve Global Depository Receipt General Derivative Risk Gross Dividend Receipt None 24. What is the full form of SME in the stock market? Small and Medium Enterprises Stock Market Exchange Share Market Equity Secondary Market Enterprise None 25. Which index represents the Bombay Stock Exchange? Nifty Sensex Nasdaq S&P 500 None 26. What is the full form of ADR? Automatic Dividend Receipt American Depository Receipt Average Dividend Ratio Annual Deposit Return None 27. What is a portfolio? A single stock investment A collection of investments A savings account A fixed deposit None 28. Which of the following is a money market instrument? Equity shares Commercial papers Debentures Real estate investments None 29. What does REIT stand for in the securities market? Real Estate Investment Trust Regular Equity Investment Trust Recurrent Investment Trade Real Estate Income Tax None 30. What does the term “bull market” refer to? A market with rising prices A market with falling prices A stagnant market A market with declining liquidity None 31. Which of the following is not a type of derivative? Futures Options Swaps Mutual Funds None 32. What is the lock-in period for investments in Equity-Linked Savings Schemes (ELSS)? 3 years 5 years 10 years No lock-in period None 33. What is the role of an underwriter in an IPO? To promote the company To guarantee the sale of securities To manage financial audits To regulate the securities market None 34. What is the difference between equity shares and preference shares? Preference shares provide voting rights Equity shares have a fixed dividend Preference shares have a fixed dividend and preferential rights Equity shares are safer than preference shares None 35. What is the meaning of the term "bid-ask spread"? The difference between the highest and lowest stock prices in a day The difference between the buy price and sell price quoted by traders The amount of brokerage charged The variation in market indices None 36. What is a stock split? Combining multiple shares into one Dividing existing shares into multiple shares to improve liquidity Offering dividends in the form of shares Issuing new shares to raise capital None 37. What is a circuit breaker in stock trading? A device used to stop high-frequency trades A mechanism to pause trading when markets hit a certain threshold A limit on the number of shares a trader can buy A rule that bans insider trading None 38. What does the term “free float” in a stock index refer to? Total number of shares issued by a company Shares available for trading by the public Shares held by promoters Total market capitalization of a company None 39. What is the maximum tenure of a commercial paper in India? 3 months 6 months 9 months 1 year None 40. What is the function of a clearing corporation? To regulate stock exchanges To settle trades and guarantee their completion To issue government bonds To promote foreign investments None 1 out of 4 Great job on taking the INCOC Test! We appreciate your interest in test.Look out for results and future opportunities.Stay Connected !! Your quiz time is about to finish. 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