Investment Basics Quiz

<p>Bonds are issued by the government, while debentures are issued by private companies. (D)</p> Signup and view all the answers

<p>The date when the bond's principal amount is repaid to the lender. (B)</p> Signup and view all the answers

<p>The interest rate paid by the borrower on the principal amount of the bond. (C)</p> Signup and view all the answers

<p>Personal belongings like furniture. (A)</p> Signup and view all the answers

<p>It reduces the overall risk by spreading investments across different asset classes. (A)</p> Signup and view all the answers

<p>The stock market index is experiencing an upward trend. (A)</p> Signup and view all the answers

<p>An investment product that offers investors a fixed interest rate over a specified period. (A)</p> Signup and view all the answers

<p>A long position aims to profit from rising prices, while a short position aims to profit from falling prices. (C)</p> Signup and view all the answers

<p>Liquid Funds/Money Market Funds (B)</p> Signup and view all the answers

<p>After the fixed date of redemption has passed (B)</p> Signup and view all the answers

<p>Balanced Funds (D)</p> Signup and view all the answers

<p>The emphasis is on increasing the principal value of the investment. (B)</p> Signup and view all the answers

<p>Gilt Funds (D)</p> Signup and view all the answers

<p>It automatically increases the number of units held by investors. (A)</p> Signup and view all the answers

<p>Open-ended funds allow continuous investment and redemption, while close-ended funds have fixed periods. (A)</p> Signup and view all the answers

<p>Liquid Funds/Money Market Funds (B)</p> Signup and view all the answers

<p>To ensure a fair and transparent stock market for investors (A)</p> Signup and view all the answers

<p>It provided a more efficient and transparent trading system. (A)</p> Signup and view all the answers

<p>The delay in settling stock transactions, which was previously 14 to 30 days. (D)</p> Signup and view all the answers

<p>To eliminate the need for physical movement of securities. (D)</p> Signup and view all the answers

<p>The risk of counterparty credit defaults. (C)</p> Signup and view all the answers

<p>Establishment of depositories like NSDL and CDSL. (D)</p> Signup and view all the answers

<p>The inefficiency and time-consuming nature of matching and recording trades. (D)</p> Signup and view all the answers

<p>It made stock exchanges more accountable and transparent to investors. (A)</p> Signup and view all the answers

<p>To offer an alternative dispute resolution method when administrative solutions fail. (D)</p> Signup and view all the answers

<p>Higher risk investments have the potential for higher returns, but also greater potential losses. (A)</p> Signup and view all the answers

<p>The company's potential for future growth. (A)</p> Signup and view all the answers

<p>Undervalued by the market, potentially offering a good investment opportunity. (D)</p> Signup and view all the answers

<p>A favorable change in government regulations. (D)</p> Signup and view all the answers

<p>To understand the company's financial health and its potential. (D)</p> Signup and view all the answers

<p>Growth stocks are expected to experience rapid growth, while value stocks are expected to be stable and undervalued. (D)</p> Signup and view all the answers

<p>Within six months of the date the dispute arose. (C)</p> Signup and view all the answers

<p>21 years old (C)</p> Signup and view all the answers

<p>A 12th standard equivalent examination (D)</p> Signup and view all the answers

<p>Individuals, partnerships, corporations, and institutions (D)</p> Signup and view all the answers

<p>To act as an intermediary between a stockbroker and a client (D)</p> Signup and view all the answers

<p>By verifying the registration certificate issued by SEBI (C)</p> Signup and view all the answers

<p>They must have adequate infrastructure and manpower (A)</p> Signup and view all the answers

<p>The broker must obtain prior permission from SEBI to continue trading (D)</p> Signup and view all the answers

<p>They must have at least 5 years of experience in the securities market (D)</p> Signup and view all the answers

Securities and Exchange Board of India, regulating securities markets.

Automated trading system introduced by NSE for efficiency and transparency.

Trading cycle with settlement in two days, established in April 2003.

Conversion of physical securities into electronic form for ease of transfer.

Law enabling establishment of depositories for electronic securities trading.

Two main depositories in India for electronic transfer of securities.

First clearing corporation set up by NSE to manage counter-party credit risk.

An organization that supervises financial markets to protect investors.

SEBI checks eligibility, infrastructure, and experience before granting registration.

Stock brokers must hold membership, follow rules, and address complaints timely.

Individuals, partnerships, institutions, and companies can become trading members.

Broker’s registration number starts with 'INB', sub-broker with 'INS' for verification.

Sub-brokers act as intermediaries between stock brokers and clients for transactions.

Sub-brokers must be 21+, not convicted of fraud, and have a 12th standard education.

Investors should perform due diligence and verify broker registrations before investing.

Registered brokers must abide by the exchange's rules and address grievances efficiently.

A quasi-judicial process for dispute resolution outside the courts.

Shares of a company that represent ownership.

Returns on equity investments that typically outperform other investments over time.

Investments with the potential for high returns but risk of loss.

Factors influencing a stock's price based on company performance and management.

Influences on stock prices based on overall market trends and sentiment.

Stocks from companies with excellent growth potential in sales and earnings.

The process of researching equity markets and specific stocks before buying.

Funds investing in short-term, highly liquid money market instruments for quick returns.

Funds that invest in government securities, ensuring secured returns with lower risk.

Funds that invest in both equity and fixed-income instruments for steady returns and growth.

Funds allowing continuous subscriptions and redemptions, linked to daily net asset value (NAV).

Funds with a fixed subscription period, closed after the IPO; fixed redemption date.

A plan where returns are reinvested instead of being distributed, focusing on capital appreciation.

A plan that distributes dividends regularly for those seeking income from their investments.

Plan allowing automatic reinvestment of dividends, increasing the number of units held by investors.

Exchange-Traded Funds that trade like stocks, providing liquidity.

Payments made by ETFs from dividends of stocks held in their portfolio.

A market condition where stock prices are rising.

A market condition where stock prices are falling.

The highest trading price of a stock in the last 52 weeks.

The lowest trading price of a stock in the last 52 weeks.

Buying shares expecting an increase in value; bullish stance.

Selling a security intending to buy it back at a lower price; bearish stance.

Stocks trading below intrinsic value, often overlooked by investors.

A mix of various investment assets to achieve financial goals.

Risk management technique using various investments to reduce risk.

A contract where one party lends money to another under specific terms.

The date when the borrower repays the principal of the bond.

Periodic interest payments made to the bondholder by the issuer.

The true value of a stock, based on fundamentals rather than market price.

Different types of financial instruments or physical items owned by an investor.