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1. ______ is a type of preference share where the dividend payable on the same accumulates, if not paid and after a specified date, these shares will be converted into equity capital of the company.
a) Preference shares
b) cumulative preference shares
c) cumulative convertible preference shares
d) participating preference shares
e) none of the above

2. A bond giving the investor the option to convert the bond into equity at a fixed conversion price is referred to as _____ bond.
a) Coupon bond
b) zero coupon bond
c) convertible bond
d) conversion bond
e) none of the above

3. The issue of new securities to existing shareholders at ratio to those already held is known as____
a) Preference shares
b) rights shares(Issue)
c) bonus shares
d) cumulative preference shares
e) none of the above

4. When it comes to the following term namely- IPO, what do you mean by “P”?
a) Provisions
b) Public
c) Private
d) Prudent
e) Pension

5. _____ refers to the right of certain preference shareholders to participate in profits, after a specified fixed dividend contracted for, is paid.
a) Preference shares
b) cumulative preference shares
c) participating preference shares
d) preference shares
e) none of the above

6. ______ 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.
a) Security market
b) Secondary market
c) Stock market
d) Bond market
e) debenture market

7. The short term bearer (up to 364 days) bearer discount security, issued by the government (through the Reserve Bank of India) as a means of meeting its cash requirements is called as_________
a) Treasury bills
b) commercial paper
c) coupon bonds
d) zero coupon bonds
e) convertible bonds

8. When it comes to the following term – FPO, what do you mean by “F”?
a) Further
b) Facility
c) Favour
d) Future
e) None of the above

9. In the ______________, the securities like shares and debentures are offered to the public subscription for the purpose of raising capital or fund:
a) Secondary market
b) Primary market
c) share market
d) debenture market
e) none of the above

10. The specified interest rate on a fixed maturity security fixed at the time of issue is called as:
a) Market rate of interest
b) call rate
c) repo rate
d) coupon rate
e) discount rate

Answers:

1. c
2. c
3. b
4. b
5. c
6. b
7. a
8. e
9. b
10. d

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