NISM-Series-XV - Research Analyst Certification Exam - 25
NISM-Series-XV - Research Analyst Certification Exam - 25
Q 1. What is Gross Profit, and how is it calculated?
a) Gross Profit is the surplus that a company can use to meet its fixed expenses and is calculated by reducing operating expenses from revenue.
b) Gross Profit is the surplus that a company can use to meet its fixed expenses and is calculated by reducing the cost of goods sold from revenue.
c) Gross Profit is the net profit of a company after accounting for interest, tax, depreciation, and amortization.
d) Gross Profit is the total revenue of a company.
e) Gross Profit is the operating profit before taxes and non-operating items.
Q 2. When should a person appointed as a director or key managerial personnel disclose their holding of securities to the company?
a) Within one month of the appointment.
b) Within seven days of appointment or becoming a promoter.
c) Within three months of the appointment.
d) At the end of the financial year.
e) Only when requested by the company's shareholders.
Q 3. What is the purpose of Cap and Floor limits for Floating-Rate Bonds?
a) To determine the face value of the bond
b) To set a maximum and minimum coupon rate
c) To calculate the maturity period
d) To determine the redemption value
e) To establish the creditworthiness of the issuer
Q 4. What is the significance of a higher EBITDA Margin for a company?
a) It indicates greater efficiency in operations compared to peers.
b) It suggests high levels of long-term debt.
c) It reflects poor liquidity.
d) It implies low profitability.
e) It measures the company's solvency.
Q 5. What is the objective of addressing conflicts of interest in the production and dissemination of research reports?
a) To increase the profit margins of research analysts.
b) Minimizing governance standards for research analysts.
c) Enhancing market malpractices.
d) Protecting investors and enhancing confidence in the market.
e) Disregarding potential conflicts of interest.
Q 6. Which of the following is NOT studied in fundamental analysis?
a) Cyclical and secular macro-economic trends
b) Cost structure and its impact on profit
c) Historical market data and price patterns
d) Governance style ensuring the best interests of shareholders
e) Financial position and ability to fund growth
Q 7. What does preferential allotment do to an ownership stake in a company?
a) Causes major dilution for all shareholders.
b) Reduces ownership stakes for preferential investors.
c) Increases ownership stakes for all shareholders.
d) Has no impact on ownership stakes.
e) Results in dilution only for those not exercising rights.
Q 8. What is the primary aim of the internal policies and control procedures specified in Regulation 15?
a) Maximizing trading activities.
b) Minimizing research efforts.
c) Addressing conflicts of interest, promoting objective research, and preventing market manipulation.
d) Enhancing market manipulation.
e) Ignoring conflicts of interest.
Q 9. How does a high Current Account Deficit (CAD) affect a nation's economy and currency?
a) Strengthens the nation's currency
b) Has no impact on the nation's currency
c) Reduces the creditworthiness of the nation
d) Lowers the cost of borrowing
e) Increases competitiveness of exports
Q 10. For stock consolidation of 5:1, what happens to the face value of each share?
a) It remains the same
b) It decreases
c) It increases 5 times
d) It increases 1/5th
e) It doubles
Q 11. According to Regulation 24(5), what is the responsibility of the research analyst or research entity concerning its employees or partners?
a) Ensure compliance with taxation regulations
b) Ensure compliance with labor laws
c) Ensure compliance with environmental regulations
d) Ensure compliance with certification and qualification requirements under regulation 7
e) No responsibility towards employees or partners
Q 12. What characterizes defensive industries?
a) Extreme cyclicality in revenues
b) Minimal impact on demand due to economic cycles
c) Massive growth during economic recovery
d) High sensitivity to commodity cycles
e) Decline in sales during recessionary conditions
Q 13. How is the swap ratio determined in a share swap transaction?
a) By the acquiring company's CEO
b) Through the bidding process
c) Each party evaluates its company to calculate a fair swap ratio
d) By regulatory authorities
e) None of the above
Q 14. What is the significance of the Financial Market?
a) It limits the universe of savers with surplus to invest
b) It restricts the options available to issuers of securities
c) It provides channels for the conversion of savings into investments
d) It discourages the transfer of rights/interests in securities
e) It prevents the wider availability of options for savers
Q 15. When is the threat of substitutes considered high?
a) When substitutes offer a worse experience to customers
b) When switching costs for customers are high
c) When there are few sellers in the market
d) When there is low competition among substitutes
e) When substitutes offer an equal or better experience to customers and switching costs are low
Access More Mock Tests Now