Practice Test

Q1) The trade begins with __________. Show Answer

Q2) __________ carry out the pay-in /pay-out of securities. Show Answer

Q3) __________ carry out the pay-in /pay-out of funds. Show Answer

Q4) Trading on the equity segment takes place on all days of week. Show Answer

Q5) Holidays are declared by the __________ in advance. Show Answer

Q6) The exchange system allots a __________ order number for all orders received in the system. Show Answer

Q7) Orders once placed cannot be cancelled. Show Answer

Q8) Orders placed by-mistake and executed can be called. Show Answer

Q9) Limit order are that order which are placed on a best market price available. Show Answer

Q10) The Indian securities market follows a __________ rolling settlement in the equity market. Show Answer

Q11) The maximum brokerage chargeable by a broker cannot exceed ___________% of contract price Show Answer

Q12) Mr. X securities worth Rs 3, 00,000 and sold worth Rs 4, 00,000 calculate maximum brokerage that a broker can charge. Show Answer

Q13) STT is applicable on purchase derivates Show Answer

Q14) The base minimum capital deposit requirement is applicable to __________ stock brokers Show Answer

Q15) Stock exchanges cannot stipulate a higher base capital? Show Answer

Q16) The stock broker can merge clients’ funds with its own funds. Show Answer

Q17) The stock broker can use one client funds for the purpose of other clients trading. Show Answer

Q18) Cash transaction with client up to 10 lakh by brokers are allowed. Show Answer

Q19) The MTM margin is called from the member ___________of the next trading day Show Answer

Q20) Calculate MIM if Mr. bought 500 shares at Rs 120 per share and closing price is Rs 122 Show Answer

Q21) In case of option purchase the margin levied will be equivalent to the premium amount only Show Answer

Q22) The VaR margin is collected on an upfront basis Show Answer

Q23) What should be the type of order placed by a trader who wishes to purchase shares of company ABC Ltd. if its share price trades at or below Rs.55? The current market price if Rs.60. Show Answer

Q24) Clearing Members (CMs) and Trading Members (TMs) are required to collect upfront initial margins from all their Trading Members/Constituents.

Show Answer

Q25) If for a particulars stock there are two BID 1.500 qty @ 50 & 1500 qty @ 49.5 if a seller ask for 500 qty @ 49 at what price the transaction will take place & how much qty? Show Answer

Q26) The document that confirms a trade executed on the stock exchange is called __________. Show Answer

Q27) The risk of default on obligations arising out of trading is controlled by the exchange by Show Answer

Q28) VaR margin is charged at differential rate on the ____________ position of the client in each security. Show Answer

Q29) Nifty index drops by 15% at 3:00 pm. Market will be halted _____. Show Answer

Q30) Trading on the equities segment takes place on all days of the week. Show Answer

Q31) ______ price is the price at which a broker will buy your current day trading position from you. Show Answer

Q32) ______ price is the price at which the broker will sell you the position you require. Show Answer

Q33) Which of the following is best buy price for shares of XYZ ltd.? Show Answer

Q34) Which of the following is best buy price for shares of XYZ ltd.? Show Answer

Q35) Which of the following is best sell price for shares of ABC ltd.? Show Answer

Q36) Which of the following is best buy price for shares of PQR ltd.? Show Answer

Q37) In stop loss orders _____ prices need to be entered. Show Answer

Q38) In case of a stop loss sell order the SLTP should not be greater than the last traded price. Show Answer

Q39) The Indian securities market follows a _______ rolling settlement in the equity market. Show Answer

Q40) In case of a 20% movement of the index, the trading will be halted for __________. Show Answer

Q41) The brokerage, service tax and STT are not indicated separately in the contract note. Show Answer

Q42) Calculate the maximum brokerage chargeable by broker on a trade value of 50,000. Show Answer

Q43) Calculate the maximum brokerage chargeable by sub broker on a trade value of 50,000. Show Answer

Q44) Calculate the maximum brokerage chargeable by sub broker on a trade value of 1,50,000. Show Answer

Q45) Credit risk management ensures that trading member obligations are commensurate with their net worth. Show Answer

Q46) The Base Minimum Capital deposit requirement is applicable to all stock brokers / trading members of exchanges having nationwide trading terminals. Show Answer

Q47) Stock broker shall keep the client’s money in a separate bank account designated as ________. Show Answer

Q48) The stock brokers are required to maintain separate beneficiary accounts for clients’ securities and own securities. Show Answer

Q49) VaR methodology seeks to measure the amount of value that a portfolio may stand to lose within a certain horizon time period due to potential changes in ________ Show Answer

Q50) Initial margin is calculated based on _____ Show Answer

Q51) Daily Trading Price Limits define the maximum percentage by which the price of a future contract can rise above or fall below the previous day settlement price. Show Answer

Q52) Calculate the maximum brokerage chargeable by broker on a trade value of 4, 50,000. Show Answer

Q53) Calculate the maximum brokerage chargeable by sub broker on a trade value of 4, 50,000. Show Answer

Q54) __________ is buyer’s price. Show Answer

Q55) __________ is a seller’s price. Show Answer

Q56) The gap between bid and ask depends on only are factor i.e. liquidity in the market. Show Answer

Q57) There are __________ types of order that can be placed on the exchanges. Show Answer

Q58) Where a trader purchase or sell his security at the best market price available the order is said to be ___________order. Show Answer

Q59) The market wide circuit breakers would be triggered by movement of __________. Show Answer

Q60) In case of 15% movement of either of index there would be a __________ market half if the movement takes place before 1 pm. Show Answer

Q61) Which of the following is not a transaction change for securities trading? Show Answer

Q62) A sub-broker can charge maximum __________ % brokerage. Show Answer

Q63) Ramesh bought securities worth Rs 840000 and sold worth Rs 60000 maximum brokerage that a broker can charge is Rs __________. Show Answer

Q64) A stock broker has to deposit ___________.with the stock exchange to get trading right on the exchange Show Answer

Q65) Fund payout by broker shall be done within__________ working days. Show Answer

Q66) __________ trading is trading with borrowed funds Show Answer

Q67) The margin calculation is done using __________ Show Answer

Q68) The risk management activities and confirmation of trades through the trading system is carried out by _______. Show Answer

Q69) Mr. Paul has placed a stop–loss buy order for the security XYZ Ltd, in the F&O trading system. The following are the details of the order: the trigger price is kept at Rs.1027.00 and the limit price is kept at Rs.1030.00. This order will be released into the system in which of the following scenarios: Show Answer

Q70) What is FALSE about an outstanding order on the system? Show Answer

Q71) If a client buys shares worth Rs. 1,25,000 and sells shares worth Rs. 75,000 through a broker, then the maximum brokerage payable to him is ________. Show Answer

Q72) If a client buys shares worth Rs. 90,000 and sells shares worth Rs. 1,10,000 through a stock-broker, then the maximum brokerage payable is ________. Show Answer

Q73) Orders placed in the stock exchange are automatically entered by the system of the exchange into its ___________. Show Answer

Q74) Which of the following is best buy price for shares of XYZ ltd.? Show Answer

Q75) Which of the following is best sell price for shares of ABC ltd.? Show Answer

Q76) In the market order there is need to specify the price at which a trader wants to purchase or sell. Show Answer

Q77) ‘Buy 50 shares of XYZ Ltd.’ is an example of _________ order. Show Answer

Q78) ‘Sell 200 shares of XYZ Ltd. At Rs.150/?’ is an example of _________ order. Show Answer

Q79) The end point of trade is __________. Show Answer

Q80) The market timings of the equities segment are from __________ to __________. Show Answer

Q81) Best buy price is the __________ buy price. Show Answer

Q82) Best sell price is the __________ sell price. Show Answer

Q83) Buy 100 share of PQR ltd at Rs 130/- or better is a __________ order. Show Answer

Q84) Buy 300 share of ABC ltd at Rs 155/- or better is a __________ order. Show Answer

Q85) ___________ order are opposite of limit orders. Show Answer

Q86) A stop loss order includes __________ price. Show Answer

Q87) In a buy order the STLP cannot be more than the lest traded price. Show Answer

Q88) In case of 10% movement of either of index there would be a __________ market half if the movement takes place before 1 pm. Show Answer

Q89) On which of the following transaction STT is not applicable Show Answer

Q90) Corporate seeking membership in capital and F & O segment of NSE require to keep an interest free securities deposit of Rs __________ Show Answer

Q91) If Mr. X sold 300 shares at Rs 110 each and closing price per share was Rs 113 calculate MIM Show Answer

Q92) For the purpose of VaR margin all the securities are classified into __________ groups Show Answer

Q93) Kanchan has a margin account and she has deposited Rs. 60000 in the account. The margin requirement for taking a position in trade is 45%. She wants to purchase the share of company ZZZ Ltd. which is trading currently at Rs. 25 per share. What would be the profit/loss if the share price rises to Rs. 30 per share? Show Answer

Q94) Mr. A. buys a futures contract of M/s. XYZ Ltd. (Lot Size: 1000) expiring on 29-Sep-2010 for Rs. 500. The spot price of the share is Rs. 490. The securities transaction tax (STT) thereon would be Rs. ____. (Assume STT rate is 0.017%) Show Answer

Q95) Member A places a buy order for 1000 shares of ABC Ltd. in the system at 11:22:01 for Rs.155 per share. Member B places a sell order for 2000 shares of ABC Ltd. at 11:22:02 for Rs.150 per share. Assume that no other orders were available in the system during this time. Whether the trade will take place and if yes, at what price? Show Answer

Q96) When order is matched orders get converted into_______. Show Answer

Q97) Which of the following is best buy price for shares of XYZ ltd.? Show Answer

Q98) Which of the following is best buy price for shares of ABC ltd.? Show Answer

Q99) Which of the following is best sell price for shares of ABC ltd.? Show Answer

Q100) These quotes given by buyers and sellers are visible to investors. Show Answer

Q101) ‘Sell 100 shares of ABC Ltd.’ is an example of _________ order. Show Answer

Q102) ‘Buy 100 shares of ABC Ltd. At Rs.50’ is an example of _________ order. Show Answer

Q103) In a buy order the SLTP cannot be less than the last traded price. Show Answer