Tag: significance, functions of stock exchange, bse & nse

Questions Related to significance, functions of stock exchange, bse & nse

The identity of members is trading in NSE is withheld by the National stock exchange. Identify the advantage stated.

  1. Wide coverage

  2. Transparency of NSE

  3. Effective matching of order in NSE

  4. Confidential trading in NSE


Correct Option: D
Explanation:

The identity of members is trading in NSE is withheld by the National stock exchange. Advantage stated here is confidential trading in NSE. NSE or National Stock Exchange is the leading stock exchange of India. It is situated in Mumbai. NSE maintains the confidential information about trading in order to protect the interests of the investors and provides safety for the investment.

Which of the following is/are advantage(s) of OTC Market?

  1. Dealers can operate both in new issues and secondary market at their option.

  2. It is a transparent system of trading with no problem of bad or short deliveries.

  3. Family concerns and closely held companies can go public through OTC.

  4. All of the above.


Correct Option: D
Explanation:

OTCEI was set up to provide small and medium companies an access to the capital market for raising finance. The OTCEI is a company incorporated under the Companies Act 1956. Following are the advantages of OTC market: a) Dealers can operate both in new issues and secondary market at their option.b) It is a transparent system of trading with no problem of bad or short deliveries.

c) Family concerns and closely held companies can go public through OTC.

Which of the following is true about OTCEI?

  1. It was set-up to provide small and medium companies an access to the capital market for raising finance.

  2. This segment provides a trading platform for a wide range of fixed income securities.

  3. It was incorporated in 1992.

  4. It launched the capital market segment in November 1994.


Correct Option: A
Explanation:

OTCEI was set up to provide small and medium companies an access to the capital market for raising finance- this is a true statement. The OTCEI is a company incorporated under the Companies Act 1956. OCTCEI is advantageous to the company because it provides methods of raising funds through capital market instruments which are priced fairly.

______ segment provides a trading platform for a wide range of fixed income securities that include central government securities.

  1. Capital Market

  2. Whole Sale Debt Market

  3. OTCEI

  4. Any of the above


Correct Option: B
Explanation:

Whole Sale Debt Market segment provides a trading platform for a wide range of fixed income securities that include central government securities. It gets regulated by the Ministry of Finance, Reserve Bank of India and Stock Exchange Board of India. It is a market where institutional investors participate in the trading of Government securities and Bonds.

NSE ensures equal access for investors all over the country with the help of appropriate communication network.

  1. True

  2. False


Correct Option: A
Explanation:

NSE ensures equal access for investors all over the country with the help of appropriate communication network- this is a true statement. The NSE was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.In NSE, the trading rights are with the trading members who offer their services to the investors. NSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.

NSE launched the capital market segment in _______.

  1. November 1993

  2. November 1991

  3. November 1992

  4. November 1994


Correct Option: D
Explanation:

NSE launched the capital market segment in November 1994. In NSE, the trading rights are with the trading members who offer their services to the investors. NSE is managed by professionals, who do not directly or indirectly trade on the exchange- this is a true statement. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSE was established by financial institutions, insurance companies and banks. NSE launched the futures and options segment in June 2000 for various derivative instruments.

In NSE, the trading rights are with the ______ who offer their services to the investors.

  1. trading members

  2. RBI

  3. SEBI

  4. all of the above


Correct Option: A
Explanation:

In NSE, the trading rights are with the trading members who offer their services to the investors. NSE is managed by professionals, who do not directly or indirectly trade on the exchange- this is a true statement. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSE was established by financial institutions, insurance companies and banks. NSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.

The NSEI was established by ______.

  1. financial institutions

  2. insurance companies

  3. banks

  4. all of the above


Correct Option: D
Explanation:

The NSEI was established by fiancial institutions, insurance companies and banks. Meeting international benchmarks and standards is one of the objectives of NSE. NSE ensures equal access for investors all over the country with the help of appropriate communication network. NSE is managed by professionals, who do not directly or indirectly trade on the exchange.In NSE, the trading rights are with the trading members who offer their services to the investors. NSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.

_______ segment of NSE provides an efficient and transparent platform for trading in equity.

  1. Whole Sale Debt Market

  2. Retail Sale Debt Market

  3. Capital Market

  4. Money Market


Correct Option: C
Explanation:

Capital market segment of NSE provides an efficient and transparent platform for trading in equity. The term capital market refers to facilities and institutional arrangements through which long-term funds, both debt and equity are raised and invested. Capital market can be defined as a market for long and medium term funds. It refers to the organizations or institutions which provide funds for more than one year time period.

Meeting international benchmarks and standards is one of the objectives of NSE.

  1. True

  2. False


Correct Option: A
Explanation:

Meeting international benchmarks and standards is one of the objectives of NSE- this is a true statement. NSE ensures equal access for investors all over the country with the help of appropriate communication network. The NSE was established by financial institutions, insurance companies and banks. NSE is managed by professionals, who do not directly or indirectly trade on the exchange. In NSE, the trading rights are with the trading members who offer their services to the investors. NSE launched the capital market segment in November 1994. NSE launched the futures and options segment in June 2000 for various derivative instruments.