NISM Day 4

1) The main difference between the two is that in the primary market, an investor gets securities in-directly from the other investors, while in the secondary market, one purchases securities from companies offering the same in IPO

• true
• false
• Can not be determined
• Partially False

2) In case of Primary markets, the IPO prices are determined by issuer company whereas in secondary market prices are determined by ______________

• SEBI
• Broker
• Demand & Supply forces
• Investor

3) Key intermediatiers for Primary Market

• Merchant Bankers, RTAs and Depositories
• Stock broker, DP and Clearing Member
• Investment Banker & Authorised Person
• Investor & Research Analyst

4) Questions to ask before investing include -

a) Is the Company an MNC and has branches abroad?

b) Is the Company doing good advertisement to market its products / services?

c) Is the company’s revenue growing, company actually making a profit, company able to repay its debts?

d) Is the company in a position strong enough to compete with its peers & the company pay dividends?

Choose one or more best questions

• A & D
• A & B
• C & D
• B & C

5) Valid modes of placing order does not include

• Orders through mobile app
• Orders sent on whatsapp / snapchat / instagram – call via social media
• Order through online browser (IBT)
• Orders on phone call / email – call & trade

6) Type of order on trading screen includes -

• MIS for intraday trades, CNC for carry forward of cash market trades, NRML for F&O Trading

• AMO for After Market Order, GTC for Good Till Cancelled Order, IOC for Immediate or Cancel Order,

• Profit Order, Loss Order, Super Order, Clear Order

• Stop Loss Order, Limit Order, Market Order, Cover Order, Bracket Order

Choose one or more options

• Only A, C & D are all valid order types
• A, B, C & D are all valid order types
• Only A, B & D are all valid order types
• Only B & D are valid order types

7) Trading Terminal Features covers the following

• The login process, Market Watch List, Creation of Customised Watch List, Placing of Buy / Sell Order, Access to Trade Book

• Access to Order Book & Seamless Fund Transfer

• Switching trades that are already executed

• Funds transfer to / from 3rd party

Choose one or more correct options

• A, B, C & D are all valid features
• Only A & B are valid features
• Only B & D are valid features
• Only C & D are valid features

8) Post Trade confirmation by exchange which comes on “T” day is optional feature which an investor needs to susbcribe to?

• true
• false
• Can not be determined
• Partially True

9)_________is Post document which every investor / trader receives either physically or on main

• ECN – Electronic Contract Note
• ECN – Electronic Customised Note
• ECN – Electronic Cover Note
• DIS – Delivery instruction Slip

10) Classification of Mutual Funds is based on _______ Parameters

• Liquidity & Ease of investing
• Economic conditions of the country
• Structure, Objective & Investment Style
• SEBIs instructions