NISM Securities Operations - 4
nism-securities-operations
Mock Test with Answer key - Click Here >>
Q 1. Which price is the final settlement price for a futures contract of the underlying in the capital market segment on the last trading day of the futures?
Trading price
Closing price
Opening price
Market price
Q 2. Who can declare upfront whether the subscription request for mutual fund would be settled in physical mode or depository mode?
Trading member
Stock broker
Clearing Corporation
Sub broker
Q 3. ___________ is the process by which an underwriter attempts to determine the price at which an initial public offering will be offered.
Stock broking
Margining
Book building
Electronic trading
Q 4. _____________ is the adjustment factor for stock splits and consolidations if the ratio is A:B.
(AxB)/B
A/B
(A+B)/B
B/A
Q 5. _______________is any trade that is cleared and settled without the participation of a clearing corporation. (i) Stop Loss Trade (ii) Market Trade (iii) Off Market Trade
Only (i)
Only (ii)
Only (iii)
Only (i) & (iii)
Q 6. ______________is the process of bringing in the money or securities by the broker to the Clearing Corporation. (i) Money-in (ii) Paid-in (iii) Pay-in
Only (i)
Only (ii)
Only (iii)
Only (i) & (iii)
Q 7. ___________give the holder a right but not an obligation to buy or sell an asset in future.
Forward
Future
Options
Swaps
Q 8. A _______________can perform and view offer related activities and information only for oneself and does not have access to information on other dealers under either, the same branch or other branches.
The Corporate manager
The branch manager
The dealer
All the above
Q 9. After the trade date (T), the securities pay-in takes place on the _____ day.
T
T+1
T+2
T+3
Q 10. At any point of time, the total indebtedness of a broker for the purpose of margin trading shall not exceed ___________ of his net worth.
2 times
3 times
5 times
8 times
Q 11. Choose from the following where the given function can be performed, ldquo;The trading members reconcile the data from the system of the clearing corporationrdquo;.
Front Office
Middle Office
Back Office
None of the above
Q 12. For a sale transaction, the seller transfers the securities to the broker and the broker transfers these securities to which of the following? (i) Buyer (ii) Exchange (iii) Clearing agency
Only (i)
Only (ii)
Only (iii)
Only (i) & (iii)
Q 13. For the securities listed in which group the VaR margin is equal to five times the index VaR and scaled up by root 3?
Group I
Group II
Group III
Group IV
Q 14. Identify the TRUE statement. (i) Call Option gives the buyer the right but not the obligation to sell the underlying asset. (ii) Put Option gives the buyer the right but not the obligation to buy the underlying asset. (iii) Call Option gives the buye
Only (i)
Only (ii)
Only (iii)
None of the above
Q 15. In ___________________, the counterparties settle their position through the exchange of the underlying security.
Cash Settlement
Credit Settlement
Physical Settlement
None of the above