B.Com In Investment Management SEM V 2022 2023 Dec 2023 INV. MGT OPERATION IN EQUITY MARKET Question Paper - Mumbai University | munotes

Questions asked in this paper

• 2) Figures to the right indicate full marks

1. Q2 The issue of new securities to existing shareholders at a ratio to those already held, at no cost to the shareholder, is known as
   • a) Bonus Issue
   • b) Rights Issue
   • c) Convertible Issue
   • d) Debenture Issue
2. Q3 If there is a dispute between a Broker and an Investor with respect to trades done on the stock exchange, they can approach the stock exchange for solving the dispute. This dispute resolving mechanism is called
   • a) Arbitration
   • b) Judgement
   • c) Mediation
   • d) Law System of Stock Exchanges
3. Q4 In India, the Rolling Settlement system is followed for Clearing and
   • a) No. of shares issued by a company multiplied by its market price
   • b) Value of shares held by promoters of the company
   • c) Value of shares of the company held by Foreign Investors
   • d) Value of shares in the company held by the public
4. Q6 SEBI’s primary role is
   • a) to protect the interests of the investors in securities
   • b) to promote the development of securities market
   • c) to regulate the securities market
   • d) All of the above
5. Q7 Which instrument among these is considered the most challenging and rewarding investment option, when compared to other investment options?
   • a) Treasury Bill
   • b) Fixed Deposit
   • c) Equity
   • d) Bonds Paper Subject Code: 45003 Operations in Equity Market
6. Q8 SEBI handles the investor grievances through a system called
   • b) SCORES
   • d) SPAN
7. Q9 order, there is no need to specify the price at which a trader wants to purchase or sell
   • a) Limit
   • b) Stop Loss
   • c) Market
   • d) Bulk Order
8. Q10 Which is the best BUY Order?
   • a) Buy at Rs. 310
   • b) Buy at
   • c) Buy at Rs 312.50
   • d) Buy at Rs. 311
9. Q1 B) State whether the following statements are True or False (Any 7): 7 marks
10. Q1 The Securities Market helps in transfer of resources from those with extra resources to others who have a productive need for them
11. Q2 Arbitration for claims up to Rs. 25 lakhs are decided by a sole arbitrator while a claim of above Rs. 25 lakhs is dealt by a panel of 2 arbitrators
12. Q3 Saturdays/Sundays/Bank and Exchange holidays are excluded for arriving of
13. Q4 IDR refers to ‘International Depository Receipt’
14. Q5 A depository can directly open accounts and provide services to clients
15. Q6 The orders of SEBI under the securities laws are appealable before Securities
16. Q7 Once the formalities of KYC and other details are complete, each client is assigned a Unique Client Code by the broker
17. Q8 Operational risk occurs when the rules governing the securities industry are changed, giving rise to a potential loss
18. Q9 Warrants entitle an investor to buy equity shares after a specified time period at a given price
19. Q10 CDSL stands for ‘Central Depository Services (India) Limited’
20. Q2 A) What is a Demat account? Who is a Depository and a Depository Participant? 8 marks
    • B) What is the role of a stock exchange? Name any two stock exchanges in 07
    • C) What is secondary market and who are the major players in it? 08
    • D) Explain the development of equity culture in India. 07 Paper Subject Code: 45003 Operations in Equity Market
21. Q3 A) Explain in brief any two Overseas Stock Exchanges. 8 marks
    • B) Exodus Ltd. has earned a profit before tax of Rs.30 lakhs. It has a tax bracket 07 of 50%. Preference Share Dividend is Rs. 5 lakhs. The number of Equity Shares is 1 lakh shares of Rs.10 each fully paid up. The market price per share is Rs.135.00
    • C) Explain the Trade Life Cycle in the securities market. 08
    • D) What are the types of risks for a broker? 07
22. Q4 A) What is book-building? Describe the process of book-building. 8 marks
    • B) Differentiate between Fundamental Analysis and Technical Analysis. 07
    • C) What are the functions of a Merchant Bank? 08
    • D) What is the procedure for investment in the secondary market? 07
23. Q5 A)_ Explain market indices with reference to India. 8 marks
    • B) Write a brief note on Red Herring Prospectus and ASBA 07
    • C) Write a Short Note on: (Any 3) 15 li. Registrar and Transfer Agent
    • v. NEAT & BOLT

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