NISM-Series-XV - Research Analyst Certification Exam -11

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Q 1. What obligations do REITs and INVITs have to distribute surplus cash flow to unit holders?

a) Distribute at least 70% of the surplus cash flow

b) Distribute at least 80% of the surplus cash flow

c) Distribute at least 90% of the surplus cash flow

d) Distribute 100% of the surplus cash flow

e) Distribute at least 60% of the surplus cash flow
 
Q 2. What is considered a crucial starting point for qualitative research in a business before investing in its equity?

a) Evaluating the company's stock performance

b) Understanding the business model

c) Analyzing market trends

d) Assessing the CEO's leadership style

e) Reviewing quarterly financial reports
 
Q 3. What is the primary source of returns for bond investments?

a) Appreciation of the value of the investment

b) Dividends

c) Coupon income

d) Capital gains

e) Stock buybacks
 
Q 4. What distinguishes hard commodities from soft commodities?

a) Source of origin

b) Market demand

c) Storage cost

d) Homogeneity

e) Use in production
 
Q 5. According to successful fund managers, what is a key consideration before investing in a firm?

a) Number of employees in the company

b) Extensive diversification

c) Understanding the business

d) Market capitalization

e) Short-term stock price movements
 
Q 6. What is the primary source of returns for equity investments?

a) Appreciation of the value of the investment

b) Dividends

c) Coupon income

d) Interest payments

e) Bond issuance
 
Q 7. How many registered Depositories are there in India?

a) One

b) Two

c) Three

d) Four

e) Five
 
Q 8. What does the vision of the management on long-term goals and strategic direction indicate?

a) Predictions of economic recession

b) Insights into market trends

c) Competency of the CEO

d) the ability to handle business challenges

e) Shareholder value creation over the long term
 
Q 9. What is the significance of liquidity in the context of equity shares?

a) Liquidity measures the volatility of a stock.

b) Liquidity indicates the long-term growth potential of a stock.

c) Liquidity measures the ease of buying and selling a stock.

d) Liquidity reflects the dividend yield of a stock.

e) Liquidity determines the market capitalization of a stock.
 
Q 10. What is the call option provided to the buyer?

a) the obligation to sell the underlying asset

b) the right to buy the underlying asset at a specified price

c) the obligation to buy the underlying asset at any price

d) the right to sell the underlying asset at a specified price

e) the right to buy the underlying asset at any price
 
Q 11. In section 7.5 of the text, what financial metrics contribute to the strengths or weaknesses of a company?

a) Market share and profit margins

b) Economic conditions and industry-specific KPIs

c) Social responsibility and fair value of shares

d) Profit margins and financial position

e) Cash flow and social responsibility
 
Q 12. What does the checklist recommend regarding the company's financial discipline in the final decision parameters?

a) It's unnecessary to consider financial discipline.

b) It's only important for short-term investments.

c) It's crucial for the quality of assets, earnings, and cash flows.

d) It guarantees high stock prices.

e) It's irrelevant for long-term investments.
 
Q 13. What does the ratio of Market Cap to GDP of a country indicate?

a) Size and importance of the stock market

b) Total value of all stocks in the market

c) GDP growth rate

d) Inflation rate

e) Exchange rate
 
Q 14. What does the "Revenue" line item in a Profit and Loss statement represent?

a) Amount earned by a company from investments

b) Value of future obligation to be provided towards a revenue transaction

c) Income from core operations or activities

d) Non-operating income such as profit from the sale of assets

e) Residual interest in a company belonging to the owners
 
Q 15. Which function is NOT mentioned as part of SEBI's powers under Section 11(2) of the SEBI Act, 1992?

a) Conducting research.

b) Regulating substantial acquisition of shares and takeover of companies.

c) Imposing taxes.

d) Promoting investors' education.

e) Regulating the working of depositories.

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