1. What is a stock?
A. A type of bond
B. A share of ownership in a company
C. A popular Indian snack
D. A government-issued document
Explanation: A stock represents ownership in a company. When you buy a stock, you own a portion of that company, and your ownership is represented by shares. Owning stock can give you voting rights and the potential to receive dividends.
2. What does IPO stand for?
A. Internal Public Offering
B. Initial Public Offering
C. Indian Premier Organization
D. Investment Portfolio Option
Explanation: IPO stands for Initial Public Offering. It is the process through which a private company becomes publicly traded by offering its shares to the general publiC. This is often a significant event for a company’s growth and expansion.
3. Where are stocks typically bought and sold in India?
A. Real estate markets
B. Supermarkets
C. Stock exchanges
D. Local fairs and festivals
Explanation: Stocks are bought and sold on stock exchanges in India, which are regulated marketplaces where buyers and sellers meet to trade various financial instruments, including stocks. The two major stock exchanges in India are the Bombay Stock Exchange (BSE. and the National Stock Exchange (NSE..
4. What is the primary purpose of a stock exchange in India?
A. To sell stocks directly to consumers
B. To regulate the prices of consumer goods
C. To facilitate the buying and selling of stocks
D. To promote traditional Indian crafts
Explanation: The primary purpose of a stock exchange in India is to provide a platform where buyers and sellers can trade stocks efficiently and transparently.
5. What is a shareholder in the context of Indian stock markets?
A. A person who works for a company
B. A person who owns shares of a company’s stock
C. A government official overseeing stock markets
D. A famous Bollywood actor
Explanation: A shareholder in the Indian stock market is an individual or entity that owns shares or stocks of a company, making them a partial owner of the company. Shareholders can benefit from capital gains and dividends based on their holdings.
6. What is a “bull market” in India?
A. A market where stocks are only traded on weekdays
B. A market with rising stock prices
C. A market with falling stock prices
D. A market for bullfighting competitions
Explanation: A “bull market” in India refers to a market where stock prices are generally rising, indicating optimism and positive investor sentiment. During a bull market, there is an overall upward trend in the stock prices of various companies.
7. What is the BSE Sensex in India?
A. A measure of stock market volatility
B. An index of 500 technology companies
C. An index of 30 large, publicly traded companies in India
D. A popular Indian dessert
Explanation: The BSE Sensex is an index that represents the performance of 30 of the largest and most actively traded stocks on the Bombay Stock Exchange (BSE.. It is often used as a benchmark to gauge the overall performance of the Indian stock market.
8. What is a stock split in the Indian context?
A. A way for companies to divide their stocks into smaller units
B. A type of bond offering
C. A government regulation on stock trading
D. A type of Indian dance form
Explanation: A stock split in the Indian context refers to a corporate action taken by a company to divide its existing shares into multiple new shares. This is typically done to make the shares more affordable for investors while maintaining the overall value of the company.
9. What does the term “dividend yield” measure for Indian stocks?
A. The percentage of shares a company issues during an IPO
B. The annual dividend income relative to a stock’s price
C. The rate at which a stock’s price increases
D. The number of spices in an Indian curry
Explanation: Dividend yield is a financial ratio that measures the annual dividend income generated by an investment relative to its current market price. In the context of Indian stocks, it provides insights into the income potential of holding a particular stock.
10. Who regulates the stock market in India?
A. The Reserve Bank of India (RBI.
B. The Ministry of Finance
C. The Securities and Exchange Board of India (SEBI.
D. The Indian Institute of Technology (IIT.
Explanation: The Securities and Exchange Board of India (SEBI. is the regulatory authority responsible for overseeing and regulating the securities market in IndiA. SEBI plays a crucial role in maintaining the integrity and transparency of the Indian stock markets.
11. Which stock exchange is often referred to as “BSE” in India?
A. Bombay Stock Exchange
B. Bangalore Stock Exchange
C. Bhubaneswar Stock Exchange
D. Baroda Stock Exchange
Explanation: The term “BSE” in India commonly refers to the Bombay Stock Exchange (BSE.. It is one of the oldest and most prominent stock exchanges in the country, where a wide range of securities, including stocks, are tradeD.
12. What is the primary currency used for trading on Indian stock exchanges?
A. US Dollars (USD.
B. Euro (EUR.
C. Indian Rupees (INR.
D. Bitcoin (BTC.
Explanation: The primary currency used for trading on Indian stock exchanges is the Indian Rupee (INR.. All transactions and settlements in the Indian stock market are conducted in Indian Rupees.
13. What is a stock market index in India?
A. A list of the most popular Indian songs
B. A measure of temperature in Indian cities
C. A statistical representation of the performance of a group of stocks
D. A catalog of traditional Indian clothing
Explanation: A stock market index in India is a numerical value that represents the performance of a specific group of stocks. It is used to gauge the overall performance of the stock market or a particular sector within the market.
14. What is the significance of the NSE Nifty 50 index in India?
A. It represents the top 50 Indian film actors.
B. It represents the performance of 50 large Indian companies.
C. It signifies the 50 major Indian festivals.
D. It represents 50 traditional Indian dance forms.
Explanation: The NSE Nifty 50 index in India is a benchmark index that represents the performance of the 50 largest and most liquid stocks listed on the National Stock Exchange (NSE.. It is widely used as an indicator of the Indian stock market’s performance.
15. What does “BSE” stand for in the context of Indian stock exchanges?
A. Bombay Stock Exchange
B. Bengaluru Stock Exchange
C. Bhagalpur Stock Exchange
D. Bhopal Stock Exchange
Explanation: In the context of Indian stock exchanges, “BSE” stands for the Bombay Stock Exchange (BSE., which is one of the two major stock exchanges in IndiA. It is headquartered in Mumbai and is known for its historical significance in the Indian financial markets.
16. What is a “trading session” in the Indian stock market?
A. A session for traders to learn traditional Indian cooking
B. A specific period during which stock trading occurs
C. A session for traders to practice Indian classical dance
D. A meditation session for stock traders
Explanation: A “trading session” in the Indian stock market refers to a specific time period during which stock trading takes place. In India, stock exchanges typically have designated trading hours during which investors can buy and sell securities.
17. What is a “market order” in Indian stock trading?
A. An order to buy or sell securities at the current market price
B. An order to buy or sell spices in an Indian market
C. An order to conduct traditional Indian rituals at the stock exchange
D. An order to perform a traditional Indian play on the trading floor
Explanation: A “market order” in Indian stock trading is an order placed by an investor to buy or sell securities at the prevailing market price. It is executed as soon as possible at the best available price in the market.
18. What is the significance of the opening bell and closing bell at Indian stock exchanges?
A. They indicate the start and end of the trading day
B. They announce the winners of a stock market cooking competition
C. They signal the arrival of important government officials
D. They mark the beginning and end of the monsoon season
Explanation: The opening bell and closing bell at Indian stock exchanges are symbolic and practical cues for the start and end of the trading day. The opening bell marks the beginning of the trading session, while the closing bell signifies the end of the trading day.
19. What is the primary goal of fundamental analysis in Indian stock markets?
A. To analyze the fundamentals of Indian classical music
B. To evaluate a company’s financial health and performance
C. To study the ancient scriptures of India
D. To predict the outcome of Indian cricket matches
Explanation: Fundamental analysis in Indian stock markets involves evaluating a company’s financial statements, business operations, and economic factors to assess its financial health and performance. It helps investors make informed decisions about investing in a particular stock.
20. What is the role of a stock analyst in India?
A. To provide legal advice to stock exchange regulators
B. To analyze and provide recommendations on stocks to investors
C. To design traditional Indian clothing for stock market participants
D. To conduct yoga sessions for stock traders
Explanation: A stock analyst in India is a professional who analyzes financial data, market trends, and company performance to provide recommendations and insights to investors. Their role is to help investors make informed decisions about buying or selling stocks.
21. What is a stock market circuit breaker in India?
A. A device used to prevent electrical hazards on the trading floor
B. A type of Indian dance performance at stock exchange events
C. A tool used by traders to track the movement of the Indian constellations
D. A mechanism to temporarily halt trading in case of extreme market volatility
Explanation: A stock market circuit breaker in India is a regulatory mechanism designed to temporarily halt trading in the event of extreme market volatility. It is implemented to prevent panic selling or buying during turbulent market conditions.
22. In India, what does the term “FII” stand for in the context of stock market investments?
A. Foreign Investment in India
B. Famous Indian Investors
C. Financial Intelligence Institute
D. Food Industry in India
Explanation: In the context of stock market investments in India, “FII” stands for Foreign Institutional Investment or Foreign Institutional Investor. It refers to investments made by foreign institutional entities such as mutual funds, hedge funds, and pension funds in Indian financial markets.
23. What is a stock market order book in India?
A. A ledger of culinary recipes from various Indian regions
B. A record of all buy and sell orders for a particular stock
C. A collection of traditional Indian artworks displayed at stock exchanges
D. A book of Indian stock market regulations
Explanation: A stock market order book in India is a digital or physical record that displays all buy and sell orders for a specific stock. It provides transparency and allows traders to see the current demand and supply levels for that stock.
24. What is a “trading halt” in the Indian stock market?
A. A break for traders to enjoy traditional Indian snacks
B. A dance performance celebrating Indian festivals on the trading floor
C. A period for traders to practice yoga at the stock exchange
D. A temporary suspension of trading due to unusual market events
Explanation: A “trading halt” in the Indian stock market refers to a temporary interruption in trading activities, typically initiated by stock exchanges, due to unusual market events or excessive volatility. It is intended to provide stability and prevent panic in the market.
25. What is a stock market index fund in India?
A. A fund that invests in traditional Indian art and culture
B. A fund that aims to replicate the performance of a specific stock market index
C. A fund that supports traditional Indian agricultural practices
D. A fund that promotes Indian literature and poetry
Explanation: A stock market index fund in India is a type of mutual fund or exchange-traded fund (ETF. that seeks to mirror the performance of a specific stock market index, such as the NSE Nifty 50 or the BSE Sensex. It provides investors with a way to invest in a diversified portfolio that tracks the index.
26. What is the role of a depository participant (DP. in the Indian stock market?
A. To perform traditional Indian dance routines at stock exchange events
B. To provide investment advice to Indian government officials
C. To facilitate the opening of demat accounts and manage securities on behalf of investors
D. To organize cricket tournaments for stock traders
Explanation: A depository participant (DP. in the Indian stock market is an intermediary institution that facilitates the opening and maintenance of demat (dematerializeD. accounts for investors. DPs also assist in the electronic settlement of trades and provide safe custody of securities in digital form.
27. What is the purpose of SEBI (Securities and Exchange Board of IndiA. in the Indian stock market?
A. To regulate the Indian film industry
B. To promote Indian cuisine worldwide
C. To organize yoga retreats for stock market participants
D. To oversee and regulate the securities market in India
Explanation: SEBI (Securities and Exchange Board of IndiA. is the regulatory authority responsible for overseeing and regulating the securities market in IndiA. It ensures fair and transparent market practices, protects the interests of investors, and promotes the development of the Indian capital markets.
28. What is a “blue-chip index” in India?
A. An index of top-rated Indian restaurants
B. An index of the most valuable and established companies in the stock market
C. An index of traditional Indian musical instruments
D. An index of famous Bollywood movies
Explanation: A “blue-chip index” in India refers to an index that includes the most valuable and well-established companies listed on the stock market. These companies are often considered to be financially stable and reliable investment options.
29. In the context of stock markets, what does “bear market” mean?
A. A market with rising stock prices
B. A market with falling stock prices
C. A market with no trading activity
D. A market for bear-related merchandise
Explanation: A “bear market” refers to a market characterized by a prolonged period of falling stock prices. It is often associated with pessimism and declining investor confidence.
30. What is the term for a person who buys and sells stocks on behalf of others?
A. Stockholder
B. Stock analyst
C. Stockbroker
D. Stock trader
Explanation: A stockbroker is a professional who buys and sells stocks on behalf of clients, providing them access to the stock market. They execute trades and offer investment advice.
31. When you own a stock, what do you own a share of?
A. The company’s debt
B. The company’s assets
C. The company’s customers
D. The company’s office space
Explanation: When you own a stock, you own a share of the company’s ownership, which includes a portion of its assets and potential future profits.
32. What is the role of dividends in stock investing?
A. They represent a company’s liabilities
B. They are fees paid to stockbrokers
C. They are a portion of a company’s profits paid to shareholders
D. They are stock trading commissions
Explanation: Dividends are payments made by a company to its shareholders out of its profits. They are a way for companies to distribute profits to their investors.
33. What is the stock market term for a sudden and significant drop in stock prices?
A. Bull market
B. Bear market
C. Correction
D. Crash
Explanation: A “crash” in the stock market refers to a sudden and severe decline in stock prices over a short period, often resulting in panic selling and significant losses for investors.
34. What is the primary goal of investing in stocks?
A. To make short-term profits
B. To preserve capital
C. To generate long-term wealth
D. To pay off debt
Explanation: The primary goal of investing in stocks is to generate long-term wealth by owning shares in companies that may appreciate in value over time. While short-term profits are possible, stocks are often considered a long-term investment strategy.
35. In the context of stock markets, what does “bear market” mean?
A. A market with rising stock prices
B. A market with falling stock prices
C. A market with no trading activity
D. A market for bear-related merchandise
Explanation: A “bear market” refers to a market characterized by a prolonged period of falling stock prices. It is often associated with pessimism and declining investor confidence.
36. What is the term for a person who buys and sells stocks on behalf of others?
A. Stockholder
B. Stock analyst
C. Stockbroker
D. Stock trader
Explanation: A stockbroker is a professional who buys and sells stocks on behalf of clients, providing them access to the stock market. They execute trades and offer investment advice.
37. When you own a stock, what do you own a share of?
A. The company’s debt
B. The company’s assets
C. The company’s customers
D. The company’s office space
Explanation: When you own a stock, you own a share of the company’s ownership, which includes a portion of its assets and potential future profits.
38. What is the role of dividends in stock investing?
A. They represent a company’s liabilities
B. They are fees paid to stockbrokers
C. They are a portion of a company’s profits paid to shareholders
D. They are stock trading commissions
Explanation: Dividends are payments made by a company to its shareholders out of its profits. They are a way for companies to distribute profits to their investors.
39. What is the stock market term for a sudden and significant drop in stock prices?
A. Bull market
B. Bear market
C. Correction
D. Crash
Explanation: A “crash” in the stock market refers to a sudden and severe decline in stock prices over a short period, often resulting in panic selling and significant losses for investors.
40. Which financial instrument represents a loan made by an investor to a company or government in exchange for periodic interest payments and the return of the principal amount at maturity?
A. Stock
B. Bond
C. Mutual fund
D. Certificate of deposit (CD).
Explanation: A bond represents a loan made by an investor to a company or government. It involves periodic interest payments and the return of the principal amount at maturity.
41. What is the name of a financial instrument that allows an investor to profit from the price movements of an underlying asset without owning the asset itself?
A. Stock
B. Option
C. ETF (Exchange-Traded FunD.
D. Futures contract
Explanation: Options allow investors to profit from price movements of an underlying asset without owning the asset itself. They provide the right but not the obligation to buy or sell.
42. What does the term “market capitalization” (market cap) of a company represent?
A. The total revenue of the company
B. The total assets of the company
C. The total number of employees in the company
D. The total value of outstanding shares of the company’s stock
Explanation: Market capitalization represents the total value of outstanding shares of a company’s stock and is often used to assess its size in the market.
43. What is the stock market term for a sudden and brief market decline followed by a rebound?
A. Crash
B. Correction
C. Flash crash
D. Bear market
Explanation: A “flash crash” refers to a sudden and brief market decline followed by a rapid rebound, often caused by extreme volatility.
44. Which stock exchange is often referred to as “Nasdaq”?
A. National Stock Exchange of India
B. New York Stock Exchange
C. National Association of Securities Dealers Automated Quotations
D. National Aeronautics and Space Administration
Explanation: Nasdaq stands for the National Association of Securities Dealers Automated Quotations and is a major U.S. stock exchange known for technology-focused listings.
45. What is the primary role of stock market regulators like the SEC (U.S. Securities and Exchange Commission)?
A. To promote stock trading
B. To regulate the prices of consumer goods
C. To oversee and enforce securities laws and protect investors
D. To organize sports events
Explanation: Stock market regulators like the SEC play a crucial role in overseeing and enforcing securities laws to protect investors and maintain market integrity.
46. What is the term for a company’s first sale of stock to the public?
A. Secondary offering
B. Private placement
C. Initial Public Offering (IPO)
D. Stock buyback
Explanation: An Initial Public Offering (IPO) is the first sale of a company’s stock to the public, allowing it to raise capital from external investors.
47. In stock trading, what does “short selling” involve?
A. Buying a stock with the expectation of long-term gains
B. Selling borrowed shares with the hope of buying them back at a lower price
C. Investing in high-risk stocks
D. Trading stocks on weekends
Explanation: Short selling involves selling borrowed shares with the expectation that their price will decrease, allowing the seller to buy them back at a lower cost.
48. What is the term for the total return on an investment, including both capital gains and dividends, expressed as a percentage of the original investment?
A. Yield
B. Return on Investment (ROI)
C. Interest rate
D. Inflation rate
Explanation: Return on Investment (ROI) represents the total return on an investment, including capital gains and dividends, expressed as a percentage of the original investment.
49. Which type of stock pays dividends consistently and is considered a reliable source of income for investors?
A. Growth stock
B. Value stock
C. Penny stock
D. Blue-chip stock
Explanation: Blue-chip stocks are known for paying dividends consistently and are considered a reliable source of income for investors.
50. What is the name for a type of order that becomes a market order when a specified price is reached or surpassed?
A. Limit order
B. Stop order
C. Market-on-close order
D. Trailing stop order
Explanation: A stop order becomes a market order when a specified price is reached or surpassed, and it is then executed at the current market price.
51. What is the stock market term for a sudden, rapid increase in stock prices, often driven by excessive optimism?
A. Bull market
B. Bear market
C. Bubble
D. Correction
Explanation: A “bubble” in the stock market refers to a situation where stock prices experience a rapid and unsustainable increase, often driven by excessive optimism.
52. What is the role of a financial analyst in the stock market?
A. To design stock exchange trading platforms
B. To analyze financial data and provide investment recommendations
C. To organize cultural events at stock exchanges
D. To manage a company’s marketing campaigns
Explanation: Financial analysts analyze financial data and provide investment recommendations to help investors make informed decisions.
53. What is a “ticker symbol” in the context of stocks?
A. A code used to identify stocks on a stock exchange
B. A musical instrument played at stock exchange events
C. A secret code used by stockbrokers
D. A type of stock trading strategy
Explanation: A ticker symbol is a unique code used to identify specific stocks on a stock exchange.
54. What is the term for a type of investment fund that pools money from many investors to purchase a diversified portfolio of stocks, bonds, or other securities?
A. Stock option
B. Hedge fund
C. Mutual fund
D. ETF (Exchange-Traded FunD.
Explanation: A mutual fund pools money from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities.
55. What is the stock market term for a situation where there are more sellers than buyers, causing prices to fall?
A. Bull market
B. Bear market
C. Bid-ask spread
D. Dividend yield
Explanation: A bear market is characterized by more sellers than buyers in the stock market, leading to falling prices.
56. What is the role of a financial planner in the context of investing?
A. To perform traditional Indian dances at investment seminars
B. To provide investment advice to government officials
C. To help individuals create and implement a financial plan, including investment strategies
D. To organize sporting events for investors
Explanation: Financial planners assist individuals in creating and implementing financial plans, including investment strategies.
57. What is the primary function of a stock exchange?
A. To buy and sell stocks directly to consumers
B. To regulate the prices of consumer goods
C. To organize cultural festivals
D. To provide a platform for buying and selling securities
Explanation: The primary function of a stock exchange is to provide a platform for buying and selling securities, including stocks and bonds.
58. What is the term for a stock that is considered undervalued and trading at a price lower than its intrinsic value?
A. Growth stock
B. Value stock
C. Blue-chip stock
D. Dividend stock
Explanation: A value stock is one that is considered undervalued and trading at a price lower than its intrinsic value.
59. What is the stock market term for the practice of buying and holding stocks for an extended period, typically years or decades?
A. Day trading
B. Swing trading
C. Long-term investing
D. Short selling
Explanation: Long-term investing involves buying and holding stocks for an extended period, often years or decades.
60. What is the significance of the P/E ratio (Price-to-Earnings ratio) in stock analysis?
A. It measures the price of a stock relative to its book value
B. It indicates the total return on investment for a stock
C. It assesses a stock’s valuation by comparing its price to its earnings per share
D. It measures the number of employees in a company
Explanation: The P/E ratio assesses a stock’s valuation by comparing its price to its earnings per share, helping investors gauge its relative value.
61. What is the role of a stock market index in investment analysis?
A. To predict future stock prices
B. To track the performance of a group of stocks and provide a benchmark
C. To determine the dividend yield of a stock
D. To analyze the debt-to-equity ratio of a company
Explanation: Stock market indices track the performance of a group of stocks and provide a benchmark for investment analysis.
62. What is the term for the process of spreading investments across different sectors or industries to reduce risk?
A. Concentration
B. Speculation
C. Arbitrage
D. Diversification
Explanation: Diversification is the process of spreading investments across different sectors or industries to reduce risk.
63. In the context of stock market orders, what does “market-on-close” (MOC. mean?
A. An order executed at the end of the trading day at the closing price
B. An order to buy or sell at any price during market hours
C. An order to trade only on weekends
D. An order for bulk purchases of stocks
Explanation: A “market-on-close” (MOC. order is executed at the end of the trading day at the closing price.
64. What is the term for a measure of how much a stock’s price has fluctuated over a given time period?
A. Dividend yield
B. Volatility
C. Market capitalization
D. Beta coefficient
Explanation: Volatility measures how much a stock’s price has fluctuated over a
65. What is the role of a stock exchange specialist or market maker?
A. To organize stock exchange events
B. To provide legal advice to traders
C. To teach traditional Indian dance at stock exchange seminars
D. To facilitate trading by buying and selling securities on their own account
Explanation: Stock exchange specialists or market makers are individuals or firms that facilitate trading by buying and selling securities on their own account. They help maintain liquidity in the market by providing continuous buy and sell quotes for securities, ensuring that buyers and sellers can transact efficiently.
66. What is the term for the process of buying additional shares of a stock at lower prices to reduce the average cost of investment?
A. Dollar-cost averaging
B. Market timing
C. Stock splitting
D. Risk management
Explanation: Dollar-cost averaging is a strategy where an investor buys additional shares of a stock at lower prices over time. This helps reduce the average cost of investment because more shares are acquired when prices are lower. It is a risk management technique that aims to mitigate the impact of market volatility.
67. What is the stock market term for a company’s financial statement that shows revenues, expenses, and profits or losses over a specific period?
A. Balance sheet
B. Income statement
C. Cash flow statement
D. Dividend statement
Explanation: The income statement, also known as the profit and loss statement (P&L), is a financial statement that shows a company’s revenues, expenses, and profits or losses over a specific period, typically a fiscal quarter or year. It provides a snapshot of a company’s financial performance during that period.
68. What is the largest stock exchange in the world by market capitalization?
A. New York Stock Exchange (NYSE)
B. Nasdaq
C. London Stock Exchange (LSE)
D. Shanghai Stock Exchange (SSE)
Explanation: Nasdaq is the largest stock exchange in the world by market capitalization, known for its technology-focused companies such as Apple, Amazon, and Microsoft.
69. Which Indian stock exchange is known as the “Bombay Stock Exchange”?
A. NSE (National Stock Exchange)
B. BSE (Bombay Stock Exchange)
C. MSE (Madras Stock Exchange)
D. KSE (Kolkata Stock Exchange)
Explanation: The Bombay Stock Exchange (BSE) is often referred to as the “Bombay Stock Exchange” and is one of the oldest stock exchanges in Asia.
70. What is the term for the practice of buying a large number of shares of a stock with the expectation of making a quick profit and then selling them?
A. Day trading
B. Long-term investing
C. Value investing
D. Dividend investing
Explanation: Day trading is the practice of buying and selling stocks within the same trading day with the goal of profiting from short-term price movements.
71. Which international stock market is known for its technology-focused companies such as Apple, Amazon, and Microsoft?
A. Tokyo Stock Exchange (TSE)
B. Frankfurt Stock Exchange (FWB.
C. London Stock Exchange (LSE)
D. Nasdaq
Explanation: Nasdaq is an international stock market known for hosting technology-focused companies like Apple, Amazon, and Microsoft.
72. What is the term for a financial instrument that gives the holder the right, but not the obligation, to buy or sell a specific stock at a predetermined price?
A. Stock certificate
B. Option
C. Bond
D. Mutual fund
Explanation: An option is a financial instrument that grants the holder the right, but not the obligation, to buy (call option) or sell (put option) a specific stock at a predetermined price within a specified timeframe.
73. When was the Bombay Stock Exchange (BSE) established, making it one of the oldest stock exchanges in Asia?
A. 1875
B. 1901
C. 1947
D. 1956
Explanation: The Bombay Stock Exchange (BSE) was established in the year 1875, making it one of the oldest stock exchanges in Asia.
74. Who was the first Indian woman to become the Chairperson of the Bombay Stock Exchange (BSE)?
A. Renuka Ramnath
B. Chitra Ramkrishna
C. Naina Lal Kidwai
D. Arundhati Bhattacharya
Explanation: Chitra Ramkrishna was the first Indian woman to become the Chairperson of the Bombay Stock Exchange (BSE).
75. In which year was the National Stock Exchange (NSE) of India officially inaugurated and started trading?
A. 1980
B. 1992
C. 2000
D. 2010
Explanation: The National Stock Exchange (NSE) of India was officially inaugurated and began trading in the year 1992.
76. What is the significance of the year 1991 in the history of the Indian stock market?
A. Introduction of online trading
B. Launch of the Nifty 50 index
C. The first IPO of a major Indian company
D. Liberalization of the Indian economy
Explanation: The year 1991 is significant in the history of the Indian stock market as it marks the liberalization of the Indian economy, leading to significant changes in economic policies.
77. Who is known as the “Father of the Indian Stock Market” for his pioneering efforts in setting up the BSE?
A. Rakesh Jhunjhunwala
B. Dhirubhai Ambani
C. Jamsetji Tata
D. Premchand Roychand
Explanation: Premchand Roychand is known as the “Father of the Indian Stock Market” for his pioneering efforts in establishing the Bombay Stock Exchange (BSE).
78. In 1986, the BSE introduced an automated trading system that revolutionized stock trading in India. What was this system called?
A. NEAT (National Exchange for Automated Trading)
B. BOLT (BSE On-Line Trading)
C. NIFTY (National Index for Trading Yield)
D. SEBI (Securities and Exchange Board of India)
Explanation: In 1986, the Bombay Stock Exchange (BSE) introduced the BSE On-Line Trading (BOLT) system, which revolutionized stock trading in India by introducing automation.
79. Which major financial institution was responsible for setting up the National Stock Exchange (NSE) in India?
A. Reserve Bank of India (RBI)
B. State Bank of India (SBI)
C. Punjab National Bank (PNB)
D. Industrial Development Bank of India (IDBI)
Explanation: The Industrial Development Bank of India (IDBI) played a significant role in setting up the National Stock Exchange (NSE) in India.
80. What event led to the temporary closure of the Indian stock markets for several days in 2001?
A. A major financial scandal
B. A terrorist attack on the BSE building
C. A computer system malfunction
D. A nationwide strike by stockbrokers
Explanation: The temporary closure of the Indian stock markets for several days in 2001 was due to a terrorist attack on the Bombay Stock Exchange (BSE) building.
81. Which Indian stock exchange introduced the concept of “Badla” trading, a carry-forward system that allowed investors to carry over their positions?
A. BSE (Bombay Stock Exchange)
B. NSE (National Stock Exchange)
C. MCX (Multi Commodity Exchange)
D. OTC Exchange of India
Explanation: The Bombay Stock Exchange (BSE) introduced the concept of “Badla” trading, a carry-forward system that allowed investors to carry over their positions.
82. What was the benchmark stock index of the Bombay Stock Exchange (BSE) before the introduction of the SENSEX?
A. BSE 100
B. BSE 200
C. BSE 500
D. BSE 30
Explanation: The benchmark stock index of the Bombay Stock Exchange (BSE) before the introduction of the SENSEX was BSE 30, which represented 30 key stocks on the exchange.
83. What is the primary goal of investing in stocks?
A. To make short-term profits
B. To preserve capital
C. To generate long-term wealth
D. To pay off debt
Explanation: The primary goal of investing in stocks is to generate long-term wealth by owning shares in companies that may appreciate in value over time. While short-term profits are possible, stocks are often considered a long-term investment strategy.
84. What is the primary purpose of a stock exchange?
A. To sell products directly to consumers
B. To provide a platform for trading securities
C. To manufacture electronic devices
D. To regulate the fishing industry
Explanation: The primary purpose of a stock exchange is to provide a regulated platform for the buying and selling (trading) of securities, such as stocks and bonds, among investors and institutions.
85. What is the term for a measure of a company’s financial health and profitability, calculated by dividing its net profit by the number of outstanding shares?
A. Earnings per share (EPS)
B. Dividend yield
C. Price-to-earnings ratio (P/E ratio)
D. Market capitalization
Explanation: Earnings per share (EPS) is a financial metric that measures a company’s profitability by dividing its net profit by the number of outstanding shares. It indicates the portion of a company’s earnings attributed to each share of its stock.
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