1. XYZ purchases 200 shares of ABC common stock on a margin @ 80$/share from its broker.

If the initial margin is 60% the amount he borrowed from the broker for the purchase is 1. 4000$ 2. 6400$ 3. 9600$ 4. 16000$ 2. The custodian having worldwide network of sub-custodian is 1. Local custodian 2. Global custodian 3. NCSD 4. ICSD 3. on a margin call 1. The broker draws fund from the margin acc 2. The investor adds fund to the margin acc 3. The broker adds fund to margin acc 4. The investor draw fund to margin acc 5. Define prime brokerage transaction a. The executing broker gives up to the prime broker Which of the following is false? a. The success of ECN depends on the ability of the ECN to attract larger share of order flow

6.

b. 7.

The NASDAQ is dealers market - true

Which of these isnt a custodian function? a. Provides a daily statement b. Safekeeping securities c. Central counterparty

d. 8.

Securities lending/ borrowing facilities

What is meant by risk free interest rates? a. Low delta risk

b.
c. d.

Low lambda risk Low gamma risk Low rho risk

9.

Which of these is not a function of exchange? a. supervision of acts b. book building c. publishing info on the trades d. order matching A farmer uses options and futures to establish the price of the goods. What is he called? a. Hedger b. None c. Speculator d. Arbitrager

10.

11. When is netting done and by whom?

a. b. c. d. T+1, NSCC T+1, EXCHANGE T+2, NSCC T+2, EXCHANGE

12. Which of the following is not Back office function?

a. b. c. d.

Clearing Order management Settlement Accounting

13. A question on traffic control? 14. Who is not specialist?

a. b. c. d. 15. dealer agent investment banker auctioneer

ECN is _________ driven a. Order b. Market c. None

16. Which of the following is true? (Question related to types of custodian) 17. what are the types of reconciliation?(Settlement related)
18. Settlement cycle of India and USA is a. T+1, T+2 b. T+2, T+2 c. T+2, T+3 d. T+3,T+3 What happens to the good till cancelled order at EOD? a. Cancelled by the exchange b. Expired c. Carry forward to the next day d. Carry forward to the next till the person cancels the order

19.

20. Abc corporation has a market capitalization of 600 million $. They decide to split shares in the ratio of 3:1. What will be
the market capitalization of abc after stock split? a. 600 mn $ b. 1200 mn $ c. 1800 mn $ d. 2400 mn $

21. High Tech Solutions makes a deal with ABC bank for 100 crores loan at an interest rate of 7% pa for 2 months. ABC bank
agrees to give MIBOR + 2% on 100 crores. In the 1st month the MIBOR was 4% and 2nd month 6.5%. at the end of the deal a. High Tech will gain 0.15 crores b. High Tech will loose 0.5 crores c. High Tech will gain 0.5 crores d. ABC bank will gain 0.5 crores 22. Institutional investors may execute their orders through a. Buy side Order Management Systems (OMS) b. Direct Market Access (DMA) c. Sell side Order Management Systems (OMS) d. All of the above 23. Repo is a a. Stock market b. Money market c. Bond market

d. 24.

All of above

Which of the following is not a money market instrument? a. Treasury bills, b. commercial paper, c. Repos d. Forex options

25. Which of these is not a func of I-bank?

a. b. c. d. 26. Loan syndication Treasury activities Transactions financing and cash management Sales and trading

choose the option financial re-structuring in one of the questions

27. Which of the following is securitized product?

a. b. 28. Convertible bonds Call options with a sweetener(warrants)

What does a company goes public? a. Greater scrutiny b. To increase market capitalization c. Gain ratings d. Cant remember the option Related to company management control a. In an M&A, the buying firm typically buys more than 50% of the acquired firm and thus obtains a controlling stake in the acquirer

29.

30.

A buys a call option with a strike price of Rs 378 and premium Rs. 5. On the expiry day under which scenario will he exercise his option a. Price is Rs.400 b. Price is Rs.378 c. Price is 373 d. Doesnt depend on the price Zero coupon yield curve is used for the pricing of which of the following a. Derivative b. Equity c. Fixed Income instrument d. None When is a notice of execution send and by whom a. At the point of sale, seller b. After executing the order, exchange c. After placing the order, Trader d. None Which of the following isnt a strategic advisory function a. Securities lending b. Merger and Acquisition c. Corporate restructuring d. None A corporate client is likely to use the services of an IB for a. Buying other company b. Streamlining its receivable management c. Raising money through capital market

31.

32.

33.

34.

d.

Obtaining a credit rating

35. There are 800 Preferred stocks and 1200 common stocks and 10% dividend. Company has a profit of 20,000/- and it decided
to pay 60% to stock holders. Then the maximum profit will be paid to a. b. c. d. 36. Preferred stock holders Common stock holders Both will be paid with equal profit none

Coupon rate is also called as a. Yield to maturity b. Current yield c. Nominal Yield d. None Market price of ABC ltd share is 200, dividend yield 5%. Dividend payout ratio = 0.5, find profit per share. Ans: - 5% of 200 =10 Rs. X*0.5 = 10 X = 20

37.

38. Warrants are voluntary corporate action (True/False) True 38. who create affirmation a. Pre trade b. Post trade c. Issuance d. Clearing

39.

Which combination is wrong a. b. c. Fix income Greek Fix income YTM Equity moving avg of .

40.

Pre trade is characterized by a. b. c. Affirmation Research and analysis Matching

41. Which is not strategic advising? (Refer 5.1.1 and 5.1.2) 42. Transferring obligation means what? Novation
43. Hedge funds can have ____ investors a. b. c. d. 44. 50 1000 25 100

On behalf of investor stock , bonds and other security holder institute is a. b. Custodian Depository

45.

Primary Brokerage is service offered by which of brokerage farm a. b. c. Retail Institutional Discount

d.

Misc.

46. What is trading ring? OTC, PIT 47. Brokerage firm is regulated by which firm. SEC,
48. Match the pair Ans: pre trade:- Research Post trade:- conformation Issuance: - IPO Clearing: - Netting 49. A person makes trades.. 1st SEP buy 10 4th sep sell 6 8th sep sell 6 Assume T+2 sell cycle what trading position as on end of day 8th sep a. b. c. d. 50. 51. ve 2 shares ve 6 shares +ve 4 shares Insufficient info.

Pay more for order refer to Super dot trading used in a. NASDAQ b. NYSE c. NONE d. ANEX.

52. Warrants are voluntary corporate action state T/F.

TRUE

53.
54.

Which is not a function of specialist

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

Which of the following statement is true about the Common stock? Sum about Spot rate calculation Statement is true about Strangles / Straddles One Question about which of the following statement is true for Bull Spread / Bear Spread Statement question: Function of NASDAQ/NYSE Some questions, problems about the Automated Clearing House Statement on which of the following questions is not part of Investment Banking Statement question on Order of trade cycle Process flow about Post Trade One case study in post trade on which day a particular activity is done (T/T+1,etc.,) Sum of call and put option Loan Syndication details Function of Back office / Front office Some of questions are from Brokerage. Sums are from Investment Banking. not Back office function what is margin call traffic control who is specialist ECN is order driven - true ICSD clearstream

20. 21.
22.

23.

types of reconciliation