Types of securities MCQ Quiz in বাংলা - Objective Question with Answer for Types of securities - বিনামূল্যে ডাউনলোড করুন [PDF]

The correct answer is option 3 i.e Rights issue

Explanation:

Rights issue

• It is most economical method of raising fresh capital because it includes no underwriting and brokerage cost.
• Under this method, the share of existing company are offered to it's existing share holders and letter of rights are send to them.
• Rights letter is a formal document informing current share holder their right to buy rights issue.

Public issue through prospectus method

• Under this method, the companies issues a prospectus to the Public inviting offers for subscription.
• The investors who are interested in the securities apply for the securities they are willing to buy.

Offer for sale method

• It is a simpler method of share sale through the exchange platform for listed companies.
• Through this process, promoters in public companies can sell their shares and reduce their holdings from publicly listed companies.

Subscription by inside coterie method

• A company may resort to subscription by promoters and directors.
• This method helps to save the expenses of public issue.
• Generally, a percentage of new issue of securities is reserved for subscription by the inside coteriewho can in this way share the future prosperity of the company.

The correct answer is A and E only.

Key Points A. SEBI was established on 12 April 1988 as an administrative body to promote orderly growth of stock market.
E. SEBI is a separate regulatory body.

Explanation:

SEBI, or the Securities and Exchange Board of India, is the regulatory body that oversees the securities market in India. The correct statements about SEBI are:

A. SEBI was established on 12 April 1988 as an administrative body to promote orderly growth of stock market.

E. This statement is correct. SEBI is a separate regulatory body that operates independently of the government, with the aim of regulating and overseeing the securities market in India in a fair and transparent manner.

Incorrect Statements:

C. The basic purpose of SEBI is not to form new enterprises, but rather to regulate and oversee the securities market in India, with the aim of promoting investor protection, ensuring transparency, and promoting the healthy growth of the market.

D. This statement is incorrect. One of the primary roles of SEBI is to protect the rights and interests of investors in the securities market, by ensuring fair and transparent practices by companies and other market participants.

B. The act of Parliament that governs SEBI is SEBI Act, 1994. This statement is incorrect. The act of Parliament that governs SEBI is SEBI Act, 1992 and not 1994.

Hence, the correct answer is A and E only.

The correct answer is A and E only.

Key Points A. SEBI was established on 12 April 1988 as an administrative body to promote orderly growth of stock market.
E. SEBI is a separate regulatory body.

Explanation:

SEBI, or the Securities and Exchange Board of India, is the regulatory body that oversees the securities market in India. The correct statements about SEBI are:

A. SEBI was established on 12 April 1988 as an administrative body to promote orderly growth of stock market.

E. This statement is correct. SEBI is a separate regulatory body that operates independently of the government, with the aim of regulating and overseeing the securities market in India in a fair and transparent manner.

Incorrect Statements:

C. The basic purpose of SEBI is not to form new enterprises, but rather to regulate and oversee the securities market in India, with the aim of promoting investor protection, ensuring transparency, and promoting the healthy growth of the market.

D. This statement is incorrect. One of the primary roles of SEBI is to protect the rights and interests of investors in the securities market, by ensuring fair and transparent practices by companies and other market participants.

B. The act of Parliament that governs SEBI is SEBI Act, 1994. This statement is incorrect. The act of Parliament that governs SEBI is SEBI Act, 1992 and not 1994.

Hence, the correct answer is A and E only.

The correct answer is A and E only.

Key Points A. SEBI was established on 12 April 1988 as an administrative body to promote orderly growth of stock market.
E. SEBI is a separate regulatory body.

Explanation:

SEBI, or the Securities and Exchange Board of India, is the regulatory body that oversees the securities market in India. The correct statements about SEBI are:

A. SEBI was established on 12 April 1988 as an administrative body to promote orderly growth of stock market.

E. This statement is correct. SEBI is a separate regulatory body that operates independently of the government, with the aim of regulating and overseeing the securities market in India in a fair and transparent manner.

Incorrect Statements:

C. The basic purpose of SEBI is not to form new enterprises, but rather to regulate and oversee the securities market in India, with the aim of promoting investor protection, ensuring transparency, and promoting the healthy growth of the market.

D. This statement is incorrect. One of the primary roles of SEBI is to protect the rights and interests of investors in the securities market, by ensuring fair and transparent practices by companies and other market participants.

B. The act of Parliament that governs SEBI is SEBI Act, 1994. This statement is incorrect. The act of Parliament that governs SEBI is SEBI Act, 1992 and not 1994.

Hence, the correct answer is A and E only.

The correct option is Stock option

Key Points

•  For issuing new securities  in the market there are multiple methods available which are mainly

​1)IPO-initial public offering 

when a company offers its share to the public for the first time

2)FPO-Follow on public offering

When a company issue additional share to the public after the IPO, it is called FPO.

3) Private placement

when a company offers its security to a selected number of investors it is called private placement.

4)Righ issue 

when a company issue additional shares to existing investors called the right issue.

5)Bonus share

when the company offers free shares to existing shareholders is called bonus shares.

Hence the correct answer is  Stock option 

Therefore, shares and securities which can be held in electronic format constitute the DEMAT account.

A fall in interest rates will make prices of Govt. Securities go up.

Government securities:

• These can be issued by the Central Government, state government, Semi-Government authorities, Autonomous institutions, PSCs, and other governmental agencies.
• These have a fixed rate of interest.
• RBI can keep them to monitor the monetary policy
• Interest earned on them is exempted from the income tax, subjected to the limits under the Income Tax Act.
• They have a fixed maturity period.

Market Interest Rate:

• The market interest rate is the prevailing interest rate offered on cash deposits.
• This rate is driven by multiple factors, including central bank interest rates, the flow of funds into and out of a country, the duration of deposits, and the size of deposits.

Market interest rates and government securities generally move in opposite directions. When market interest rates rise, prices of fixed-rate securities fall. This phenomenon is known as interest rate risk.

• Interest rate risk is the potential that a change in overall interest rates will reduce the value of a bond or other fixed-rate investment.
• As interest rates rise bond prices fall, and vice versa. This means that the market price of existing bonds drops to offset the more attractive rates of new bond issues.
• Interest rate risk is measured by a fixed income security's duration, with longer-term bonds having greater price sensitivity to rate changes.
• Interest rate risk can be reduced through diversification of bond maturities or hedged using interest rate derivatives.

Marking to Market” implies adjusting traders' profits or loss position on a daily basis.

• Mark to market can present a more accurate figure for the current value of a company's assets, based on what the company might receive in exchange for the asset under current market conditions.
• However, during unfavorable or volatile times, MTM may not accurately represent an asset's true value in an orderly market.
• Mark to market is contrasted with historical cost accounting, which maintains an asset's value at the original purchase cost.
• In futures trading, accounts in a futures contract are marked to market on a daily basis. Profit and loss are calculated between the long and short positions.