Practice Test

Q1) The underwriting commission in case of debentures as per the Companies Act shall not exceed Show Answer

Q2) As per SEBI guidelines, the underwriting commission on equity shares Show Answer

Q3) The underwriting commission in case of Rs. 4 lakh preference shares capital subscribed to by the public, under Ministry of Finance guidelines, should not exceed Show Answer

Q4) According to the Companies Act the underwriting commission on shares should not exceed Show Answer

Q5) The underwriting commission is calculated on Show Answer

Q6) Unmarked application refer to Show Answer

Q7) When all the shares are underwritten by the underwriters, it is called Show Answer

Q8) Marked applications refer to Show Answer

Q9) R Limited issued a debenture of Rs. 100 each at Rs. 90. The underwriting commission will be paid on Show Answer

Q10) M Limited issued shares at a face Value of Rs. 100 with a premium of Rs. 20 per share. The underwriting commission will be calculated on Show Answer

Q11) When the entire issue is underwritten by only one person, his liability will be equal to Show Answer

Q12) The underwriter is entitled to claim remuneration on Show Answer

Q13) If the whole of the issue of shares or debentures is underwritten it is known as Show Answer

Q14) If a part of the issue of shares or debentures is underwritten, it is termed as Show Answer

Q15) When an underwriter agrees to buy a definite number of shares in addition to unsubscribed shares, it is termed as Show Answer

Q16) According to the Companies Act, the commission payable to underwriter for underwriting shares should not exceed Show Answer

Q17) Commission for underwriting shares as per the guidelines issued by the Stock Exchange division of the Dept. of Economic Affairs, Ministry of Finance (F14/1/SE/85-7-85) and also as per SEBI guidelines should not exceed Show Answer

Q18) As per SEBI guidelines, commission payable to underwriters for underwriting Preference shares or Debentures upto Rs. 5 lakhs, should not exceed Show Answer

Q19) The Underwriting Commission in case of Preference Shares / Debentures beyond Rs. 5 lakhs as per SEBI guidelines, should not exceed Show Answer

Q20) K Ltd. issued shares of Rs. 1,000 each at Rs. 950. The Underwriting Commission will be paid on Show Answer

Q21) When the underwriting commission becomes payable, the underwriter A/c is debited. Show Answer

Q22) The underwriting commission is payable in cash. Show Answer

Q23) Unmarked applications are known as direct application. Show Answer

Q24) Underwriting may be done by individual, partnership firms or joint stock companies. Show Answer

Q25) The percentage of underwriting commission on shares applied to by public is the same as on shares devolved on the underwriters. Show Answer

Q26) The underwriting commission is payable in cash alone. Show Answer

Q27) Under firm underwriting, the underwriters do not agree to purchase any shares. Show Answer

Q28) The applications received directly by the company which do not bear any stamp of the underwriters are called ‘Marked Applications’. Show Answer

Q29) The net liability of underwriter, under complete underwriting, can be ascertained by deducting total applications received from shares or debentures offered. Show Answer

Q30) Unmarked applications can be distributed among the underwriters in the ratio of gross liability. Show Answer

Q31) Marked applications are also known as direct applications. Show Answer

Q32) Every Company issuing shares to public must collect within 15 days _______. Show Answer

Q33) The time limit for collection of minimum subscription is _____. Show Answer

Q34) In case of shares commission cannot exceed ______. Show Answer

Q35) In case of Debentures commission cannot exceed ______. Show Answer

Q36) When the entire issue is underwritten it is called _____. Show Answer

Q37) The applications which bear the stamp of underwriters are called as ______. Show Answer

Q38) Underwriting commission one is debited to ______. Show Answer

Q39) Underwriting commission is calculated on ______. Show Answer

Q40) Unmarked applications are ______. Show Answer

Q41) When all the shares are underwritten it is called _____. Show Answer

Q42) When some of the shares are underwritten it is called _____. Show Answer

Q43) SV Ltd. Issued a 10% Debentures of Rs. 100 each at 20% discount. The underwriting commission will be paid on ______. Show Answer

Q44) SV Ltd. Issued shares a face value of Rs. 100 each at par. The MV is Rs. 120 cost is Rs. 90. The underwriting commission will paid on _____. Show Answer

Q45) SV Ltd. Issued shares of Rs. 100 each at 50% premium. Underwriting commission will be paid on ______. Show Answer

Q46) When the entire issue is underwritten by Mr. Premkumar, he is liable for _______. Show Answer

Q47) Marked applications are ______. Show Answer

Q48) Unmarked applications are ______. Show Answer

Q49) Underwriters can claim remuneration on ______. Show Answer

Q50) When an underwriter agrees to purchase a certain no. of shares in addition to unsubscribed shares, it is called as _____. Show Answer

Q51) Vide SEBI guidelines underwriting commission for Preference shares and Debentures up-to Rs. 5,00,000 should not exceed. Show Answer

Q52) Vide SEBI guidelines underwriting commission for Preference shares and Debentures beyond Rs. 5,00,000 should not exceed. Show Answer

Q53) An underwriter is a person ______. Show Answer

Q54) A person cannot act as an underwriter unless he hold a certificate granted by ______. Show Answer

Q55) When the benefit of firm underwriting is given to the underwriters ______. Show Answer

Q56) When the benefit of firm underwriting is not given to the underwriters ______. Show Answer

Q57) Underwriting is mandatory for all companies as per Indian companies Act. Show Answer

Q58) Underwriting commission can exceed 5% of the issue price of shares. Show Answer

Q59) Underwriting commission cannot exceed 2 1/2 of the issue price of debentures. Show Answer

Q60) Total shares for which guarantee is given by each underwriter individually is known as firm underwriting. Show Answer

Q61) Definite commitment by the underwriters to take specified number of shares is known as gross liability. Show Answer

Q62) Underwriter is a broker. Show Answer

Q63) Underwriting commission is calculated on face value of shares. Show Answer

Q64) Underwriting commission is calculated on price value of shares. Show Answer

Q65) In full underwriting entire issue is underwritten. Show Answer

Q66) Marked applications do not bear any stamp of the underwriter. Show Answer

Q67) Unmarked applications are signed by the underwriters. Show Answer

Q68) Unmarked applications do not affect calculations of liability of the underwriters. Show Answer

Q69) Marked applications are called as direct applications. Show Answer

Q70) Marked applications are stamped by the underwriters. Show Answer

Q71) In partial underwriting only 2 persons underwrite the issue. Show Answer