NCFM Capital Market (Dealers) Practice Questions - NCFM Capital Market (Dealers) Module Exam - NCFM Capital Market (Dealers) Practice Questions - NCFM Capital Market (Dealers) Module Exam

Question 1

Which of the following functions of the Indian capital market most directly supports the capital formation process in the economy?

Providing a secondary market for speculative price discovery and daily liquidity Channels household savings into productive corporate investments through primary market issues Offering margin trading and leverage facilities to short-term dealers Redressing minor investor complaints and arbitration cases between brokers

Correct Answer:

Channels household savings into productive corporate investments through primary market issues

Question 2

What is the primary operational difference between the primary market and the secondary market in India?

The primary market deals only in debt instruments while the secondary market deals only in equity shares In the primary market, transactions occur between issuers and investors, whereas in the secondary market, transactions are between investors themselves Primary market transactions are regulated by the Reserve Bank of India, while secondary market transactions are regulated by SEBI The primary market utilizes the NEAT trading system for matching, while the secondary market does not use screen-based trading

Correct Answer:

In the primary market, transactions occur between issuers and investors, whereas in the secondary market, transactions are between investors themselves

Question 3

Which of the following is a characteristic feature of corporate debt instruments compared to equity shares in the Indian securities market?

Debt instruments represent ownership capital and carry voting rights at annual general meetings Debt instruments provide variable returns linked to the quarterly profits of the issuing firm Debt instruments have a fixed maturity date and represent a creditor relationship with the company Debt instruments are cleared and settled without any margins or settlement guarantees

Correct Answer:

Debt instruments have a fixed maturity date and represent a creditor relationship with the company

Question 4

If a listed company has 10,000,000 outstanding shares, the current market price per share is Rs. 150, and the promoter holdings comprise 40% of the total equity, what is the Free-Float Market Capitalisation of the company?

Rs. 1,500,000,000 Rs. 900,000,000 Rs. 600,000,000 Rs. 150,000,000

Correct Answer:

Rs. 900,000,000

Question 5

In the Indian stock market context, which of the following holdings is generally excluded from the calculation of a company's free-float market capitalisation?

Shares held by retail individual investors holding less than Rs. 2 lakh nominal value Shares held by mutual funds in their diversified equity schemes Shares held by promoters, controlling interest groups, and government holdings as strategic investments Shares held by Foreign Portfolio Investors (FPIs) in the secondary market

Correct Answer:

Shares held by promoters, controlling interest groups, and government holdings as strategic investments

Question 1

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Prepare with the NCFM Capital Market (Dealers) Practice Questions - NCFM Capital Market (Dealers) Module Exam practice quiz. This question bank includes 100 questions covering market, stock, trading, order, and exchange. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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NCFM Capital Market (Dealers) Practice Questions - NCFM Capital Market (Dealers) Module Exam

This practice set contains 100 questions from the matching question bank and focuses on market, stock, trading, order, and exchange. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

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NCFM Capital Market (Dealers) Practice Questions - NCFM Capital Market (Dealers) Module Exam

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