Practice Test

Q1) ___________ Market help business firm to raise Capital. Show Answer

Q2) The surplus units in an economic are called ___________. Show Answer

Q3) The deficit units are called ___________. Show Answer

Q4) Market sentiments at the time of issue does issue affect the issue price. Show Answer

Q5) In primary market only equity shares can be issued for fund raising. Show Answer

Q6) In primary market ___________ sell shares directly to ___________. Show Answer

Q7) Subsequent public offer are called ___________. Show Answer

Q8) Once the shares are listed on the stock exchange the company is called as ___________ company. Show Answer

Q9) Listing of company does not offer any advantage to the company. Show Answer

Q10) IPP refers to ___________. Show Answer

Q11) Which of the following is not an intermediary involved in an IPO Show Answer

Q12) __________ grade the IPO. Show Answer

Q13) If DRS are listed on a stock exchange in the USA they are called as. Show Answer

Q14) If DRS are listed on a stock exchange outside the US they are called ___________. Show Answer

Q15) In case of FCCB the payment of interest and principal is in __________ currency. Show Answer

Q16) The maturity of the FCCB will be not less than ___________ years. Show Answer

Q17) Investor should bid equal to or more than the __________. Show Answer

Q18) The price band cannot revised during the bidding period. Show Answer

Q19) Under __________ head a review of company its business strategy, main object, subsidiary detail, etc are given. Show Answer

Q20) The red hearing prospectus does not include the bid opening and closing date. Show Answer

Q21) ASBA stands for ___________. Show Answer

Q22) ASBA facility is available for only QIBs. Show Answer

Q23) In bonus issue shareholders get payment of bonus in cash. Show Answer

Q24) Bonus share are given against some minimum payment for shares. Show Answer

Q25) Stock split generally curried out when price of shares go very __________. Show Answer

Q26) Advertisement of issue shall not contain any false or misleading date. Show Answer

Q27) There is no limit or regulation on advertisement of issue of securities. Show Answer

Q28) A preference share ___________. Show Answer

Q29) Equity shares have a high expected return and a high___ while for bonds there is a low risk but a low ____. Show Answer

Q30) If, in a year, the company does not have adequate profits, the dividend will not be payable in the case of ________ shares. Show Answer

Q31) An investor who holds equity shares becomes a ______ of the company. Show Answer

Q32) Riskiness of investing in ______ is more than the riskiness of investing in _______. Show Answer

Q33) Units in which total equity capital of company is divided is called as __________ . Show Answer

Q34) Which is not correct from the following Show Answer

Q35) __________ represents a contract whereby one party lends money to another on predetermined terms. Show Answer

Q36) Equity shares can be acquired only through IPOs. Show Answer

Q37) If a public issue is heavily over subscribed Show Answer

Q38) Which of the following is essential for the public issue of a debt security? Show Answer

Q39) In a Nifty futures contract the underlying is __________. Show Answer

Q40) In ASBA, the amount is blocked in __________. Show Answer

Q41) When a security is sold above the face value of the security is known as issue at ________. Show Answer

Q42) If securities are sold below its par value it is known as issued at _______. Show Answer

Q43) The issue price is decided by the company in consultation with merchant banker. Show Answer

Q44) In book Building process price is determined before issue. Show Answer

Q45) Floor price means _______ price and cup price means _______ price. Show Answer

Q46) The rights are offered in a particular ratio to the number of securities ________ as on the record date. Show Answer

Q47) As per the SEBI ICDR Regulations, _________ issue means an issue of specified securities by a listed issuer to any select person or group of persons on a private placement basis. Show Answer

Q48) When a listed issuer issues equity shares or securities convertible in to equity shares to __________ only in terms of provisions of Chapter VIII of SEBI (ICDR) Regulations, it is called a QIP. Show Answer

Q49) FCCBs or Foreign Currency Convertible Bonds are a foreign currency (usually dollar) denominated _______ raised by companies in international markets. Show Answer

Q50) An Indian company that is not eligible to raise equity capital in the domestic market is not eligible to make an FCCB issue. Show Answer

Q51) Issuers raise capital from the investor by making ___________. Show Answer

Q52) IPP can be made to only ___________. Show Answer

Q53) Every IPP must minimum of ___________ allottee. Show Answer

Q54) Who plays a key role in IPO? Show Answer

Q55) Who is known as lead manager in an IPO? Show Answer

Q56) __________ agree to subscribe to the securities that are not subscribed by the public or shareholders in case of issue of securities Show Answer

Q57) __________ agree to subscribe to the securities that are not subscribed by the public or shareholders in case of issue of securities Show Answer

Q58) ___________ process the application form received in the IPO Show Answer

Q59) ___________ helps the investors in effecting transfer of share between the existing holders and new buyers. Show Answer

Q60) Bankers collect application form along with __________. Show Answer

Q61) When an issue of securities is made by an issuer to its shareholders existing as on particular date is called as __________. Show Answer

Q62) When an issuer makes an issue to a selected group of persons not exceeding __________, it is called as private placement Show Answer

Q63) Depository receipts (DR) are issued in __________ currency. Show Answer

Q64) When DRS are listed on Indian stock exchange they are called __________. Show Answer

Q65) The company whose shares are traded as DR gets a __________ investor base in the international market. Show Answer

Q66) The feature of DR by which share can be bought in the local market and converted into DRS to be traded in foreign market is __________. Show Answer

Q67) An Indian company that is not eligible to raise equity capital in the domestic market cannot raise fund through FCCB. Show Answer

Q68) FCCBs are regulated by __________ notifications. Show Answer

Q69) When the price of an issue is discovered on the basis of demand received from the investor it is called __________. Show Answer

Q70) The public issue is kept open for minimum of __________ days and maximum __________ days. Show Answer

Q71) Offer document is also known as __________ in case of public issue. Show Answer

Q72) Till the allotment is made investor earns interest on this money lying in account in ASBA. Show Answer

Q73) In __________ auction investors have to bid above a defined floor price. Show Answer

Q74) In case of right issue normally share are issued at a price __________ than the market price. Show Answer

Q75) DRs issued on the securities of foreign companies, and listed on the Indian exchanges are called __________. Show Answer

Q76) Foreign investors will have to re-convert the sale proceeds from rupees to the foreign currency for repatriation. Show Answer

Q77) A holder of an ADR/GDR does not have right to _____. Show Answer

Q78) Public issue is simple. Show Answer

Q79) When a listed company makes issue to its existing shareholders it is known as _________ Show Answer

Q80) The right issue securities are issue below market price Show Answer

Q81) The price at which the issue take place in the primary market depends upon following factors except Show Answer

Q82) ___________ value of a share at any point in time the price quoted on the exchange. Show Answer

Q83) Securities can be used as ___________ for loans. Show Answer

Q84) In every IPP at least ___________ % of the issue is to be reserved for mutual funds and insurance firm Show Answer

Q85) The company the depository and the __________ enter into a tripartite agreement. Show Answer

Q86) Which of the following is not a responsibility of the merchant banker? Show Answer

Q87) A company cannot appoint more than one investment banker for single IPO Show Answer

Q88) ___________Works as syndicate member for an IPO Show Answer

Q89) ___________ focus on assisting the investors particularly the retail investors in taking informed investment decision. Show Answer

Q90) __________ refers to an issue specified securities by a listed issues to any selected group of persons Show Answer

Q91) ___________ is a foreign currency denominated debt raised by companies in international markets but have the option to converting into equity shares. Show Answer

Q92) FCCB allow companies to raise debt at ___________ rates abroad Show Answer

Q93) When the issuer at the outset decides the issue price and mentions it in the document it is known as __________. Show Answer

Q94) __________ is the document on the basis of which the investors place their trust in the company and invest their monies. Show Answer

Q95) Details of merchant bankers is given in __________ section of draft offer document. Show Answer

Q96) Draft Red hearing prospectus contains all disclosures except the __________. Show Answer

Q97) __________ is a price stabilizing mechanism. Show Answer

Q98) __________ is a price stabilizing mechanism. Show Answer

Q99) In green shoes option maximum of __________ % shares are issued in exchange of issue size. Show Answer

Q100) Bonus issue of shares is given to the shareholders in order to convert reserves to __________. Show Answer

Q101) The ________ maintains records of investors in companies. Show Answer

Q102) The price at which company’s shares are offered initially in the primary is known as ________. Show Answer

Q103) In _______ issue cash flow remains unchanged Show Answer

Q104) In bonus issue share are issued to new share holders free of cost Show Answer

Q105) Price at which securities will be issued is known in advance in __________.

Show Answer

Q106) The prospectus includes Show Answer

Q107) In case of FPO the issue size does not exceed _____ times the pre issue net worth. Show Answer

Q108) To issue a DR, specific quantity underlying equity shares of a company are lodged with a ________. Show Answer

Q109) In case of FCCB the payment of interest and repayment of principal is in _______ currency. Show Answer

Q110) In prospectus under which head the management of the issuer company gives its view on the Internal and external risks envisaged by the company? Show Answer

Q111) The introduction section of the prospectus include following except Show Answer