Secondary market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange.
Secondary Market Class 10 MCQ
1. What is the purpose of the secondary market?
a. Market for government bonds
b. Market for commodities
c. Market for new securities
d. Market where existing securities are traded
2. Which of the following is a feature of the secondary market?
a. Providing a platform for public offerings
b. Helps to raise capital for companies
c. Facilitating trading of existing security
d. All of the above
3. What is the basic difference between primary and secondary markets?
a. The primary market is for new issues, and the secondary market is for existing securities.
b. The primary market deals with new security, and the secondary market deals with new issues.
c. There is no difference.
d. None of the above
4. Which of the following is a part of the auction market?
a. Mutual fund
b. Stock exchange
c. Insurance market
d. All of the above
5. What is the purpose of a stock exchange?
a. To issue new shares
b. To provide interest rate
c. To manage company finance
d. To provide a trading platform for buyers and sellers
6. Who supervises stock exchanges in India?
a. RBI
b. IRDA
c. Ministry of Finance
d. SEBI
7. What do you mean by demutualisation of stock exchanges?
a. Separation of ownership
b. Separation of management
c. Separation of trading rights
d. All of the above
8. In a mutual exchange, who manages the exchange?
a. Broker
b. Independent board
c. Government
d. Investors
9. What type of market is known as an over-the-counter (OTC) market?
a. Dealer market
b. Auction market
c. Bond market
d. All of the above
10. What is Screen-Based Trading (SBTS)?
a. Trading physically
b. Trading through a computerised system
c. Trading through SMS
d. All of the above
11. What is NEAT in the context of NSE?
a. New Electronic Auction Terminal
b. National Equity Allocation Tools
c. National Exchange for Automated Trading
d. None of the above
12. What is the feature of the NEAT system?
a. Trade manually
b. Trade using a database for fast response
c. Trade using paper
d. Offline trading
13. How can an investor place an order with a broker?
a. Through Website
b. Through Phone
c. Through Model agreement
d. All of the above
14. How can an investor access internet-based trading?
a. Directly from SEBI
b. For the NSE broker offering online trading services
c. Visiting the stock exchange
d. All of the above
15. What is a contract note?
a. A confirmation of trades on behalf of the client
b. An ownership certificate
c. A tax invoice
d. A broker receipt
16. Who is responsible for signing the contract note?
a. The investor
b. The SEBI
c. The stockbroker
d. The exchange manager
17. What is the maximum broking charge from a client?
a. 1% of the transaction
b. 2% of the transaction
c. 2.5% of the transaction
d. All of the above
18. What is the risk of trading outside of a stock exchange?
a. High broker charge
b. No investor protection
c. Limited trading hours
d. No access to the trading
19. How will you verify whether the broker is registered or not?
a. By checking the PAN card
b. By asking for the SEBI registration certificate
c. By visiting a stock exchange
d. None of the above
20. What is the starting number of SEBI-registered brokers?
a. BRK
b. INB
c. INS
d. REG
21. What is the starting number of SEBI-registered sub-brokers?
a. BRK
b. INB
c. INS
d. REG
22. What should an investor receive from the broker after a trade?
a. Profit guarantee
b. Contract note
c. Company shares
d. None of the above
23. What is a red flag when receiving investment advice?
a. Tips promising huge returns for quick action
b. Recommendations for SEBI
c. Advice based on company fundamentals
d. All of the above
24. What should an investor verify before dealing with a broker or sub-broker?
a. PAN card of the broker
b. Broker profile
c. Office location
d. SEBI registration certificate
25. Which document outlines the risks involved in trading?
a. Portfolio summary
b. Demat statement
c. Annual report
d. Risk Disclosure Document
26. Within how much time should an investor receive the contract note after a trade?
a. 2 Days
b. 24 Hours
c. 48 Hours
d. End of the year
27. What is a right issue?
a. Share issued to the public
b. Share issued free of cost
c. New shares offered to existing shareholders at a fixed ratio and price
d. None of the above
28. What do you mean by ‘bonus share’?
a. A share issued at a discount
b. Share issued free of cost
c. Share issued to government
d. Share issued free to existing shareholders
29. What is a zero-coupon bond?
a. A bond issued at a discount price
b. A bond pays with interest.
c. A bond issued at face value
d. None of the above
30. What is a convertible bond?
a. A bond that is converted into equity shares
b. A bond issued by the government
c. A bond with no maturity date
d. None of the above
31. What is the average annual dividend paid in India?
a. 0.1%
b. 3%
c. 5%
d. 1.5%
32. What is Growth Stock?
a. The stock pays high dividends.
b. Stock with decline
c. Stocks with low market value
d. Stocks of companies with high growth potential that reinvest profits
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