NISM-Series-XV - Research Analyst Certification Exam - 35

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Q 1. When do auditors provide a "disclaimer" in their report?

a) Auditors disagree with the accounting policy.

b) Auditors are unable to verify any part of the financials.

c) Auditors have reservations about the financial statements.

d) Auditors believe there are serious discrepancies.

e) Auditors have no issues with the financial report.
 
Q 2. Under what circumstances would placing an order on securities, while in possession of non-public information about a substantial impending transaction, be considered a violation of the regulations?

a) When the order is placed without any relevant information.

b) When the information is publicly available.

c) When the person is not aware of the impending transaction.

d) When the information is about an insignificant transaction.

e) When the information is not publicly available.
 
Q 3. What is the theoretical possibility discussed in the context of quantitative research in equity analysis?

a) Predicting short-term price movements accurately

b) Extrapolating future earnings through basic metrics

c) Overcoming the limitations of econometric approaches

d) Utilizing historical data for accurate comparisons

e) Identifying leading indicators for the company's performance
 
Q 4. What does a significant deviation in a company's dividend announcement from its past suggest?

a) Stable business conditions

b) Strong growth opportunities

c) Challenging environment

d) Predictable business phases

e) Lower shareholder returns
 
Q 5. What is the restriction mentioned in Regulation 18(1) regarding the publication of research reports or public appearances after participating as a manager in an initial public offering (IPO)?

a) No restrictions

b) Forty days immediately following the date of pricing

c) Thirty days immediately following the date of pricing

d) Ten days immediately following the date of pricing

e) Fifteen days immediately following the date of pricing
 
Q 6. What primarily drives the commodity cycle?

a) Short-term inventory adjustments

b) Seasonal fluctuations in demand

c) Economic cycles and demand changes

d) Predictable changes in production

e) Permanent shifts in customer preferences
 
Q 7. What methods can be used for buying back shares by making an offer to existing shareholders on a proportionate basis?

a) Tender method

b) Book-building process

c) Open market

d) Odd lot holders

e) Stock exchange
 
Q 8. What is the duration for retaining a copy of the advertisement by Investment Advisers and Research Analysts as per SEBI regulations?

a) One year

b) Three years

c) Five years

d) Seven years

e) Until the completion of the advertisement campaign
 
Q 9. What contributes to barriers to entry in an industry, according to the text?

a) Low competition and weak buyers' bargaining power

b) Licensing requirements, patents, and copyrights

c) Strong competition and low switching costs

d) Limited number of suppliers and buyers

e) Weak suppliers' bargaining power
 
Q 10. How can investors use the PEG ratio to compare companies?

a) Compare the dividend yield

b) Compare debt levels

c) Compare liquidity

d) Compare the PEG ratios of different companies

e) Compare historical performance
 
Q 11. What is the primary distinguishing feature of External bonds, also known as Euro bonds?

a) they are issued only in European countries

b) they are issued in the currency of the country in which they are listed

c) they are always fully convertible into shares

d) they are issued in a currency different from the country of issue

e) they are exclusively issued by the government
 
Q 12. What is the primary source of revenue for the media industry, especially in print media?

a) Payments by Users

b) Bench Strength

c) Content Acquisition Cost

d) Advertisement Revenue

e) Number of Transactions
 
Q 13. What is another term for Inflation Risk?

a) Interest Rate Risk

b) Market Risk

c) Purchasing Power Risk

d) Default Risk

e) Credit Risk
 
Q 14. What is the primary purpose of a public issue in the primary market?

a) To offer shares exclusively to existing shareholders.

b) To determine the profitability of the company.

c) To raise fresh capital from public investors.

d) To facilitate private placement programs.

e) To allow existing investors to exit their investments.
 
Q 15. How is understanding SWOT analysis crucial for evaluating a company's growth potential and risk tolerance?

a) It helps in forecasting quarterly financial reports

b) It provides insights into employee satisfaction

c) It reveals market share dynamics

d) It assesses internal and external factors affecting the company

e) It focuses on the CEO's leadership style

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