Introduction to Financial Markets: When a company announces a corporate action, it is initiating a process that will bring actual change to its securities either in terms of number of shares increasing in the hands on the shareholders or a change to the face value of the security or receiving shares of a new company by the shareholders as in the case of merger or acquisition etc.
Miscellaneous Class 10 MCQ
Q. What is a corporate action?
a. A government policy
b. A process initiated by a company
c. A legal dispute
d. None of the above
Q. Who can agree on the corporate actions?
a. Customers
b. Employees
c. Board of Directors and shareholders
d. All of the above
Q. Which of the following is not a type of corporate action?
a. Right issue
b. Stock split
c. Income tax refund
d. Dividend
Q. What is the purpose of a stock split?
a. Increases the face value
b. To reduce the shareholders
c. To merge two companies
d. Increases the number of shares without changing total value
Q. Yearly, how many times are dividends usually paid?
a. Monthly
b. Daily
c. Once a year
d. Twice a year – interim and final
Q. What is a dividend?
a. A tax paid by shareholders
b. A penalty given to the company
c. A portion of company earnings distributed to shareholders
d. All of the above
Q. Suppose a company earns Rs. 6 per share and pays Rs. 3 as a dividend to shareholders; then what percentage of profit is paid to shareholders?
a. 25%
b. 50%
c. 75%
d. 100%
Q. Who declares the company dividend?
a. Shareholders
b. Government
c. Employees
d. Company directors
Q. What do you mean by dividend yield?
a. The stock is underpriced.
b. The stock is overpriced.
c. Both a) and b)
d. None of the above
Q. What do you mean by stock split?
a. When the company split
b. A dividend payout
c. A corporate action that increases the number of shares
d. None of the above
Q. Suppose a company declares a stock split of 2-for-1; it means that __.
a. It halves
b. It doubles.
c. No change
d. None of the above
Q. If the company declares the stock split, then what happens?
a. It decreases proportionally.
b. It remains unchanged.
c. It will increase
d. None of the above
Q. If the stock splits, then the market capitalisation will change?
a. Yes
b. No
Q. Why did the company declare the stock split?
a. To increase profits
b. To reduce the share
c. To make shares more affordable
d. To pay dividends
Q. What happens when the stock is split by the company?
a. It attracts more investors.
b. It reduces company expenses.
c. It increases taxes.
d. All of the above
Q. What is a buyback of shares?
a. Selling shares to the government
b. Selling shares to the public
c. A company buying its own shares from investors
d. Issuing new shares
Q. Which of the following regulations governs buybacks in India?
a. SEBI Regulation, 1998
b. Companies Act, 1956
c. RBI Act
d. Income Tax Act
Q. What is the maximum duration for a buyback offer through a stock exchange?
a. 7 Days
b. 15 Days
c. 30 Days
d. 60 Days
Q. What is the Nifty index?
a. A list of government bonds
b. A mutual fund portfolio
c. A 50-stock index in the Indian market
d. None of the above
Q. Which of the following exchanges does the Nifty represent?
a. BSE
b. NSE
c. SEBI
d. RBI
Q. Who maintains the Nifty index?
a. RBI
b. Indian Index Services & Products Ltd. (IISL)
c. Ministry of Finance
d. Bombay Stock Exchange
Q. Which of the following is not a function of a clearing corporation?
a. Financial guarantee
b. Share Price Prediction
c. Risk management
d. None of the above
Q. Which entity acts as the Clearing Corporation for NSE?
a. SEBI
b. NSCCL
c. RBI
d. BSE
Q. NSCCL is a subsidiary of _.
a. SEBI
b. RBI
c. NSE
d. IISL
Q. What is rolling settlement?
a. Settlement done in three months
b. Settlement of trades after a fixed number of days
c. Settlement only for government bonds
d. None of the above
Q. What do you mean by T + 2 in rolling settlement?
a. Trade plus 2 minutes
b. Trade plus 2 months
c. Trade plus 2 transactions
d. Trade plus 2 working days
Q. What is Pay-in Day?
a. The day when dividends are paid
b. Day when sellers receive funds and buyers receive securities
c. Day when sellers deliver securities and buyers provide funds
d. None of the above
Q. What is payout day?
a. The day when dividends are paid
b. Day when sellers deliver securities and buyers provide funds
c. Day when sellers receive funds and buyers receive securities
d. None of the above
Q. What does the exchange do during an auction?
a. Sells company shares to the public
b. Buys securities from the market to deliver to the buyer
c. Issues bonus shares
d. None of the above
Q. What is the record date?
a. The date when the company files taxes
b. The date when the company split the shares
c. The date when the shareholder names are finalised
d. None of the above
Q. Who is responsible for maintaining electronic records of investor holdings?
a. Stock exchange
b. Depository
c. Government
d. None of the above
Q. What do you mean by a no-delivery period?
a. Trading is banned.
b. Dividends are paid.
c. Trading is allowed, but settlement is delayed.
d. None of the above
Q. What is the ex-dividend date?
a. Date when the shares are split
b. Date when the dividend is paid
c. Date after which buyers are not entitled to the declared dividend
d. None of the above
Q. What is the ex-date?
a. The date when dividends are paid
b. The date when shares are split
c. The first day of the no-delivery period
d. None of the above
Q. To whom do the investors lodge complaints against brokers?
a. RBI
b. Ministry of Finance
c. Investor Grievances Cell (IGC)
d. Company Registrar
Q. What do you mean by ‘arbitration’ in the context of stock exchanges?
a. A dispute resolution mechanism
b. A system for dividend payment
c. A method to cancel trades
d. None of the above
Q. What is the main purpose of the Investor Protection Fund (IPF)?
a. To issue a bonus
b. To regulate stock prices
c. To compensate investors
d. All of the above
Q. Who maintains the Investor Protection Fund?
a. SEBI
b. NSE
c. RBI
d. All of the above
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