Fiscal Policy is purposeful movements in GOVERNMENT
SPENDING AND TAXES designed to direct an economy.
Business risk is the risk associated with the amount of debt
financing used by a firm.
Initial margin charged by the Clearing Corporation is a percentage
of transaction value arrived at based on concept of Value At Risk
philosophy.
When companies give new shares to their existing shareholders
without any consideration, it is known as stock dividend or bonus
issue/shares.
The advantage of American Depository Receipts (ADRs):
Investors who buy ADRs pay no currency-conversion fees There
are no minimum purchase requirements for ADRs, companies
offer ADRs in the U.S. to appeal to mutual funds.
Credit risk, business risk, Liquidity risk are the types of
unsystematic risk.
Analysis and decision making process is a combination of
understanding qualitative as well as quantitative factors.
The Equity share holders DO NOT have the first right of claim on
the company's assets in case of liquidation
Shareholders wealth increases with the increase in DIVIDEND
AND MAKRET VALUE PER SHARE.
The increasing use of the internet to buy goods is classify as which
type of PESTL issue: technological.
As per Regulations 19 SEBI(Research Analyst) Regulation 2014,
Research Analyst must disclose valuation methods used to
determine the price Target.
The bargaining power of consumers can be the most important
force impacting competitive advantage.
QUALITATIVE parameters take care of aspects like business
model, SWOT analysis, competition in the industry, technology
aspects etc.
SEBI is the regulator of capital and forward markets in India and
responsible for registering and regulating the entities and their
activities
The BCG matrix is based on industry growth rate and relative
market value.
Apart from the balance sheet or retained earnings, the financial
analyst also must take into consideration the previous track record
of the company while doing the fundamental analysis.
Analysts should focus on the qualifications and experiences of
independent director while analysing the company.
Aid provided by a country to another country will come in which of
the following accounts of the second country: CAPITAL ACCOUNT
The common stock of a company must provide a higher expected
return than the debt of the same company because: THERE IS
MORE SYSTEMATIC RISK INVOLVED FOR THE COMMON
STOCK
The Sale and Purchase of new issues of stocks happen in
SECONDARY MARKET.
A trader is expecting the interest rates to fall in the near future.
Which strategy he should use to benefit if his view turns out to be
correct? BUTY LONG DATED HIGH COUPON BONDS
MANAGEMENT is one of the most critical factors to be considered
while investing in any company.
Calling feature in bonds IS ADVISABLE WHEN THE NTEREST
RATES ARE EXPECTED TO FALL.
According to the Dow theory, daily fluctuations and secondary
movements in the stock market are used to identify the: PRIMARY
TREND
In which business sum-of-the-part (SOTP) valuation apply? A
COMPANY OPERATED IN SEVERAL BUISNESS.
The credit risk in all exchange traded markets is taken care by
THE CLEARING CORPORATION
A PROFITABLE COMPNAY WILL NEVER RUN OUT OF CASH IS
A WRONG STATEMENT.
The risk of loss of value in an investment because of adverse price
movements in an asset in the market is called MARKET RISK.
Security premium is shown under which of the following head of
balance sheet:: RESERVES AND SURPLUS
Comparison of the market price of the share with the earnings per
share gives us which ratio? PRICE TO EARNING RATIO
Are Puttable bonds a safe option for the investors in a rising
interest rate scenario
Cash flows in the future according to a pre-arranged formula IS
CALLED SWAP
American Depository Receipts (ADRs) are: Certificate that trade
in the U.S and represent a specific number of shares of stock
in a non U.S company.
The issuance of securities by companies is also subject to
provisions of the Companies Act.
In BONUS SHARES AND SHARE SPLIT ( corporate action) total
numbers of shares go up without any economic change in the
profit and loss statement or balance sheet.
Relative Valuation of a firm reflects the current market mood.
A research analyst has prepared a research report on a company
listed on the NSE. He too wishes to buy this stock. Can he buy this
stock after 30 days from preparation of such report
Bonus shares can be issued out of its: FREE RESERVES BUILT
FROM THE GENUINE PROFITS.
LOSS AVERSION BIAS leads investor to avoid riskier asset
classes.
AMORTISATION AND DEPRECIATION: NON CASH CHARGES
IN MERGER, the acquirer buys up the shares of the target
company. The assets and liabilities of the target company are
takens ones by the acquirer
Which force is about competitive intensity in the industry is strong,
products/services are standardized with little or no differentiation,
close substitutes of the product/services exist and switching cost
for customers is low or nil? BARGAINING POWER OF THE
BUYER.
How to increase the value of company in case of financial
distress? DEBT RESTRUCTURING.
In private placement: SHARES ARE OFFERED THROGH
LETTER OF OFFER.
Two major influencers of the public policies in an economy are
THE GOVERNMENT AND THE CENTRAL BANK
A high PE stock relative to the peer group numbers and the market
PE, is seen as a EXPENSIVE stock.
An IPO price can be decided either by fixed price or book building
process
