NISM Series XII: Securities Market Foundation Mock Test – Free Demo

Explanation:

Banks, Non-banking Finance Companies and Financial Institutions can issue Equity shares, Preference shares, Bonds, Convertible bonds, Securitized paper, Commercial paper and Certificates of deposit to raise capital.

Explanation:

The Reserve Bank of India regulates the money market segment. As the manager of the government’s borrowing program, RBI is the issue manager for the government. It controls and regulates the government securities market.

Explanation:

When a security is traded on cum basis, it means that it incorporates the benefit of the corporate action in its price. Once it goes ex-basis, the buyer no longer has the benefit of the corporate action. For eg. If security ABC is traded on an Ex-Bonus basis from 1 December, then the buyers of this security from 1 December onwards will not receive the bonus shares.

Explanation:

Bonds give regular returns in the form of interest. Returns from Gold, Equity and Property are uncertain and investment in these is generally for the long term.

Explanation:

Explanation:

Mutual funds may impose a charge on the investors at the time of exiting from a fund called the exit load. It is calculated as a percentage of the NAV and reduced from the NAV to arrive at the price that the investor will get on exiting from the investment.

Redemption Price = NAV less Exit load

In the above question, NAV is Rs. 18 and the exit load is 2%.
2% of Rs. 18 is 0.36
So the Redemption Price is 18 – 0.36 = Rs. 17.64

Explanation:

Current yield simply compares the coupon of a bond with its market price.

Current yield = Coupon rate/ Market price

As per the given data –

Current yield = 8 / 111

= 0.072 (x 100 ) = 7.2 %

Explanation:

Open interest is compared with the volume of trading in the derivatives market. The larger the open interest as a percentage of traded volume, the greater the liquidity in the market. An increase in open interest is seen as an indicator of liquidity as it means fresh money is flowing into those contracts.

Explanation:

Financial planning is done because there is need for retirement planning, difficult to understand investment products etc.

Explanation:

Promoters must contribute at least 20% of the post-issue paid up capital of a company making a public issue and this is locked in for a period of 3 years.