ATS BATCH 1 2015

1. Which of these statements is true about the Maximum downward price for a security?

The maximum downward price movement in one day for a security is 9%

The maximum downward price movement in one day for a security is 9.75%

The maximum downward price movement in one day for a security is 8.75%

The maximum downward price movement in one day for a security is 10%

2. Who are the APEX regulators of the capital Market ?

Central Bank of Nigeria

Charted Institute of Stock Brokers

Chartered Institute of Bankers of Nigeria

Securities and Exchange Commission

3. Which of these statements is true about the Maximum upward price for a security?

The maximum upward price movement in one day for a security is 10%

The maximum upward price movement in one day for a security is 10.25%

The maximum upward price movement in one day for a security is 5%

The maximum upward price movement in one day for a security is 5.25%

4. One for the following is not a benefit of FIX?

It is an Open Protocol and brings all players together

It is an Electronic protocol and increases efficiency of communication among industry players

It is Globally supported

It facilitates the easy transfer of accounts

5. Mr. A has two (2) children B and C and he intends to cross his shares to his two (2) children without passing through the floor of the Exchange. What is the mode of this transaction called?

Cross deal

OTC extra

Call over system

Nominal transfer

6. Clearing House Numbers and investors' number are one and the same for the investors. Do you agree?

True

False

Not sure

7. The Index is useful for:

Performance Benchmarking

Measuring Economic performance

To forecast

All of the above

None of the Above

8. The NSE Index includes which of the following in the computation

Preference shares

Bonds

Equities

All of the above

None of the Above

9. Why is backing up data files important?

Backup up data is not necessary for a user

Backing up data is the work of the IT Administrator

Backups ensure that the information you need is there when you need it especially during disaster

10. The Registrar is a professional who operates in ...

The money market

The supper market

The capital market

Oyingbo market

The banks

11. A Probate Letter is…

A letter from a friend

A letter of guarantee from a bank

A legal document on a deceased estate who left behind a Will

A love letter

A letter showing details of a probe

12. Unclaimed dividends are caused by one of the under listed or all of them

Failure of Registrars to update their clients registers

Ignorance of shareholders

Failure of the postal system

All of the above

13. Which of the following most adequately describes self-regulatory Organisation

Making announcements

Making arrests

Making rules

Making products

Making money

14. Which of the following is the apex regulator of the Nigerian Capital Market?

Capital Market Solicitors Association

Association of Stockbroking Houses of Nigeria

Nigerian Stock Exchange

Securities and Exchange Commission

Chartered Institute of Stockbrokers

15. Which Committee of the National Council of The Exchange is most directly involved with making rules, regulations and guidelines for Dealing Members?

Audit and Risk Management Committee

Disciplinary Committee

Governance and Remuneration Committee

Rules and Adjudication Committee

Technical Committee.

16. Which of the following is not a stakeholder in The Exchange’s rules making process:

Association of Stockbroking Houses of Nigeria

Chartered Institute of Stockbrokers

Nigerian Council of Registered Insurance Brokers

Central Securities Clearing System Plc

Capital Market Solicitors Association

17. According to NSE Article 2, a Dealing Member has a responsibility to report any breach of the Articles by another Member. Which of the following is the implication of failure to report such breach?

The member himself / itself is guilty of a breach of the rules and regulations of the exchange

The member will be suspended from trading immediately

The member will be liable to pay a fine to be determined by the Council of the exchange

The member will receive an official warning from the Council of the exchange

18. Who can enter transactions during Pre-Open Adjust and Pre-Close Adjust sessions?

Traders and Firm Managers

Market Makers

Traders only

Firm managers only

19. What are the different trading sessions in X-Stream ?

Pre-Open, Pre-Open adjust, Continuous Trading, Pre-Close Adjust, Close

Pre-Open, Pre-Open adjust, Continuous Trading, Pre- Close, Pre-Close Adjust, Close

Pre-Open, Pre-Open adjust, Continuous Trading, Close

Pre-Open, Continuous Trading, Pre-Close Adjust, Close

20. When can a market maker enter two way quotes ?

Continuous Trading, Pre-Close Adjust, Close

Pre-Open, Pre-Open adjust, Pre-Close Adjust, Close

Pre-Open adjust, Continuous Trading, Pre-Close Adjust

Continuous Trading, Pre-Close, Pre-Close Adjust, Close

21. Select from the statements below, what the art of good Time management does not depict:

Organizing

Planning

Arranging

Fast ranging

22. FIX was first conceived by the equity trading departments of;

Fidelity Management & Research and Salomon Brothers

Fidelity Management & Nasdaq

Fidelity asurance & Goldman sachs

Fidelity Group & Stanbic

23. The NSE is a government organization

True

False

Not Sure

Perhaps

24. CSR stands for?

Corporate Social Responsibility

Corporation of Society Responsibility

Corporate Social Relationship

Composition of Social Relations

25. What should you do if someone asks you for your password

If it is your boss give your password to him/her

You can share your password and possibly change it later

Always says NO, and report the event as an incident

26. Which of the following is not a function of Registrars

Preparing of annual reports for client companies

B. Dividend payments

C. Posting of annual reports

D. Keeping of unclaimed dividends accounts

27. Which of the following best describes the functions of the LSR Department?

Decrease the number of listings on the various boards & manage existing listed companies

Managing existing non-listed companies and increase number of listings

Proffering solutions to the needs of prospect companies & increase the number of listings on the various boards

Increase the number of listings on the various boards & manage existing listed companies

28. Trading Account Positions can be seen via which table?

Trading and Loss Account Table

Trading Account Table

Trade Events Table

29. Oscar Onyema is the______ of The Nigeria Stock Exchange

Executive Director

CEO

DG

Manager

Senior Vice President

30. Parties to a primary market transaction are

Issuing house, stockbroker, reporting accountant, solicitor, AMCON

Issuing house, stockbroker, reporting accountant, SEC, registrar

Issuing house, stockbroker, EFCC, solicitor, registrar

Issuing house, stockbroker, reporting accountant, solicitor, registrar

31. What is Asset Co-mingling ?

Mixing up many investors account

Mixing up all proprietary accounts

Mixing up all proprietary and clients’ assets

Mixing up all proprietary and clients’ shares

32. What should you do if you see a stranger walking in the halls of your building?

Visitors will always find their ways around offices

Do not be distracted by visitors around or in your office

Always escort visitors. Have them wait in lobby for you and escort them back when your business is completed.

33. The following are the nine stages of Quotation except:

Application/Packaging Stage

NSE Quotations Approval/SEC Registration Stage

Brokers Dealer engagement

Completion Board Meeting Stage

34. What is the standard period for rules exposure to stakeholders:

7 days

14 days

21 days

28 days

42 days.

35. One of the following is not a column on the Securities table?

Reference Price

Open Quantity

Bid Depth

Firm name

36. Professional Etiquette is presenting a ______ professional image.

Basic

Passive

Positive

Intermediate

37. Which of these is not within the direct control of Broker Dealer Regulation Department

Ensuring the firm engage compliance officer

Managing complaints from both clients and firms

Ensuring that listed companies hold AGM

Conduct pre-trade inspection for firms that have been issued license

38. A modern stock broking environment which should have minimum of three layers of controls. Which of the following is not a control layer

Risk Management

Compliance Management

Password Management

Internal Audit

39. Customer Due Diligence procedures requires:

One-off customer identification procedure at account opening stage

Periodic assessment of customers transaction history

Continuous update, monitoring, assessment and reports on i and ii above to management and regulatory authorities

None of the above

40. Why are registrars considered so important in the capital market

They are supper humans

They are very kind

They answer all shareholders

All transactions are verified by Regiatrars

41. The following are currently traded on the NSE except

Equities

ETF

Treasury Bills

Fixed Income

None of the above

42. Limit up Limit Down applies to individual stocks whilst index circuit breaker applies to broad index

True

False

Perhaps

43. Which of the following does not require a licensing Agreement with the NSE?

Distribution of End of Day Data

Distribution or Real Time Data

Distribution of Pricelist to Clients by E-mail

Distribution of Delayed Data

44. The back office department is made up of

Customer service & Compliance

Operations & Finance

Customer service & Finance

Operation & Business Development unit

45. Which of these statements is true ?

Auction takes place at the end of Pre-Open and Close session

Auction takes place at end of Pre-open Adjust and Close session

Auction takes place at the end of Close session

Auction takes at the end of pre-open Adjust and Pre-Close Adjust

46. What is WON?

An order quantity must be filled as soon as it becomes available on the market, otherwise the order expires

An order quantity must be filled partially the rest of the order expires

An order quantity must be filled partially by more than 1 counterparty and the rest of the order expires

47. When sending or forwarding email you should make sure that it does not:

Create a chain mail situation

Have an attachment file

Follow general business practices

All of the above

48. What is the importance of the newly introduced Issuers Portal?

To accept application for new issues

To enable issuers file annual returns and corporate actions

To allow brokers trade on securities from the diaspora

To allow brokers trade securities from within Nigeria

49. Who are the participants of the call over trading ?

The Broker, Recording clerk, Call over chairman and Call Board officer

Recording clerk, Call over chairman and Call Board officer

X-Stream, Recording clerk, Call over chairman and Call Board officer

ATS, Recording clerk, Call over chairman and Call Board officer

50. Role of a stockbroker in a primary market transaction include:

Marketing, Liaising with CAC, Pricing, Allocation, Research & Listing

Marketing, Liaising with SEC, Pricing, Allocation, Research & Listing

Marketing, Liaising with NSE, Pricing, Allocation, Research & Listing

Marketing, Liaising with CBN, Pricing, Allocation, Research & Listing

51. Professional Ethics encompasses the following:

The personal standards of behavior expected of a professional

The corporate standards of behavior expected of a professional

The personal and corporate standards of behavior expected of a professional

The corporate standards of behavior expected of a professional

52. Stages in a stockbroking circle is made up of:

Arrival, Business Relationship and Satisfaction

Pre-Arrival, Arrival, Business Relationship and Satisfaction

Marketing, Business Relationship, verification, contract note and Bank

Marketing, opening account, paying cash, execution of mandate and contract note

53. An order quantity must be filled as soon as it becomes available on the market, otherwise the order is cancelled, this order is known as a ?

FOK

FAK

ICC

WON

54. Which of these is an example of a Traditional Market Vendor?

HSBC

Bloomberg

CSL

Merrill Lynch

55. Which of the following best describes the roles of the financial market are:

Create liquidity

Allocate scarce resources from savers to investors

Creates an avenue to save

Creates security for your asset

56. A market maker is involved in all but one of the following

Earning bid-ask spread

Giving two way quotes

Providing Liquidity in security

Price discovery

Brokerage Commission

57. Which of these statements from the Code of Conduct Rules is false ?

He/she will not sit in a chair

He/she will not shake hands with qualified brokers

He/she will leave the floor without taking permission from the market controller

He/she will remain standing on the floor throughout the trading period

58. The trade comparison, clearing & Settlement function is handled by:

Front office

Back office

Settlement Office

Service support office

59. All but one of the following currently exists on NSE

Naked Short Selling

Hybrid Market

Direct Market Access

Primary Market Maker

All of the above

60. The following are the roles of Corporate Communications except

Communicate clearly and effectively the Brand Essence and Promise to internal and external stakeholders

Establish The NSE as the CSR/Sustainability facilitator of the Nigerian capital market by developing and implementing CSR initiatives

Drive brand/product awareness and engagement through traditional and digital capabilities

Examine The NSE operational processes

61. What is AON?

An order quantity can be filled by more than 1 counterparty and any unfilled quanity remains open to the market

An order quantity must be filled partially the rest of the order expires

An order quantity must be filled partially by more than 1 counterparty and the rest of the order expires

62. When constructing a password you should:

You should use your family member name, sports name, pet name and add a number on the end

Use phrases or misspelled words with embedded numbers and special characters

Use sequenced letters and numbers from your keyboard

All of the above

63. Which fields can be amended in a buy or sell order ?

Security, Volume, Price, Account No, Market, Private, Fill Terms, Duration

Volume, Price, Account No, Market, Private, Fill Terms, Duration

Price, Account No, Market, Private, Fill Terms, Duration

Account No, Market, Private, Fill Terms, Duration

64. Describe what reconstruction is?

Increasing share volume/value

Decreasing share value/volume

Increasing/decreasing share volume/value

None of the above

65. Which of the following is a requirement for listing on the ASeM board?

Operating track record of 2 years

Minimum of 61 shareholders

Companies must retain a Designer Adviser(DA) to assist with regulatory compliance

At least 10% of share capital must be offered to the public as public float

66. Which of these statements is true?

Crossing orders are off manual and have to be approved by Market control

Crossing orders are on manuals and require Market control approval

Crossing orders are on manual and can be executed outside best market

Crossing orders are on manual and are matched at best market price

67. Which of the following statements is false : When speaking _______________

Watch with non - verbal cues

Do not show interest and enthusiasm

Concentrate on what is being said

There is need for eye contact

68. What type of events do we co-ordinate in Corporate communications department?

Bell ringing only

Bell ringing and Facts behind the listing

Closing Gong Ceremony, Facts Behind the Listing, Fact Behind the Figures, conferences

Trade Fair, Closing Gong Ceremony, fact behind the figures, fact behind the listing, conferences, investors clinics

69. How many Boards do we have on the NSE?

4

2

3

1

70. The accounts maintenance function is handled by:

Service support unit

Customer service

Front Office

Back office

71. Which of the following statements is false : A Professional needs to exhibit

Comments about everything

A sense of confidence

Warm smile

Firm handshake

72. The following are objectives of Market Regulation except:

To avoid agency problem

To prevent manipulation of market prices by unscrupulous individuals

To build great business entities

To make life easy

73. Product Management is responsible for all but one of the following

Enhance market micro-structure to create accessibility, liquidity, efficiency, and profitability

Implementing broker dealer regulations

Drive NSE’s initiative to broaden and deepen the capital market by increasing the number of asset classes to five

Manage relationships with local and international stakeholders in the market.

B & D

74. What is conflict of interest?

Not to worry about someone else’s interest if it competes with your own

A tension between two employees of the same organization

You have the same obligations and responsibilities as another party

A tension between competing obligations and responsibilities

75. Which of following is not a unit in Broker Dealer Regulation Department

Surveillance

Licensing Relationship Management

Enforcement and Monitoring

Tips and complaints management

76. In Order Entry, which of these options is not an Order Type?

Limit

Market

Private

Open

77. The list below indicates the steps to prioritize your daily tasks, excluding which word:

Serious

Consideration

Minor

Urgent

78. Business Ethics refers to a written set of guidelines by an organization to help its

Employees

Management

Employees, Management & Directors

Employees, Management, with the exclusion of Directors

To conduct their actions in accordance with its primary values and ethical standards

79. One of these statements is not correct about a Private Order?

A minimum Order value is required

Private Order cannot be viewed on the market

Private Order can change to Negogiated deal

Private order can be withdrawn

80. One of the following statements is true. Which one?

DJIA is an All-share Index

Sample size must be very large to construct an index

Divisor adjustments are undertaken when bonuses are issued

None of the Above

81. Which of these is an example of display usage of Real time market data?

ETF Computation

Order Management System

Terminal Display

None of the Above

82. Describe the concept of DVP

Delivery versus pay back

Deliver versus protect

Delivery versus payment

Simultaneous delivery versus payment

83. Choose from the options below industry represented on the boards of the NSE?

Construction/Real Estate, Services & Petroleum

Agriculture, Services & Accounting

Consumer Goods, Natural Resources & Conglomerates

Financial Services, Healthcare & Power

84. A Market order can only be entered when?

There are only market orders on the opposite side of the order book

There are exisiting Limit orders on the opposite side of the book

There are orders on the security already

The opposite side of the order book is empty

85. One of the following is not part of broker testing on the NSE platform

Session testing

Advance testing

OMS

Integration

86. Which of these does not include units of Listings Regulation Department

Listings Analysis

Listings Compliance

Listings Sales and Retention

Listings enforcement

87. Which of the following are specifically mentioned in NSE articles 104-108 that prohibit trading abuses: I. Price manipulation and illegal market dealings II. Circulation of false information / front running III. Maneuvering with intention to defraud IV. pegging / stabilizing of securities

II and III

I, II and III

I, III and IV

All of the above

88. The least number of identifiable possible ethical threats that a professional has to face in a well-structured firm are:

5

3

4

2

89. Which order types can be entered during the Pre-Open Session?

Limit and Market Orders

Limit Orders

90. One of the following statements is not correct. Which one?

Indices cannot be constructed for individual portfolios

The phenomenon of indexes based on few stocks is widely accepted

Ease of conversion to cash and vice versa is important in stock selection into

None of the Above

91. Which of the following units is responsible for receiving applications for new issue?

Listings Analysis

Listings Compliance

Listings Sales and Retention

Listings enforcement

92. Which of these statements are true ?

Order duration types available during Pre-open -Session (Good Till Open), Good Till Date and Day

Order duration types available during Pre-open –Market , Session (Good Till Open), Good Till Date and Day

Order duration types available during Pre-open –Immediate , Session (Good Till Open), Good Till Date and Day

Order duration types available during Pre-open –Pre-Close , Session (Good Till Open), Good Till Date and Day

93. All customer related and transaction information regardless of mode of communication must be retained for a minimum period of:

Four Years

Two Years

Ten Years

Six Years

94. The basic principles underlying ethical conduct of individuals and professionals are ------------- in number:

7

5

4

6

95. One of the following statements is incorrect on a Bear Market

A period of positive returns in the broader market of between 6-10 percent

A period in which investment prices rises and optimism

It must occur within six months of the year

It occurs when unemployment is low and inflation is slowing down

None of the above

96. NSE Article 149 provides that a Dealing Member should maintain the confidentiality of client Information, but allows for exceptions under certain conditions. Which of these is not one of the exemptions? I. When he knows or suspects the person has committed treason, money laundering, terrorist financing, drug trafficking, and other felonies II. To protect the interest of dealing member, to enable it collect brokerage fees, to defend an action instituted against it III. When the dealing member feels that the shares purchased by a client is large enough to Influence the market

III only

I and III

II and III

All of the above

97. Primary market transaction include:

Rights Issue, Private Placement, Special Placement, Public Offer

Initial Public Offer, Public Offer, Private Placement

Initial Public Offer, Public Offer, Private Placement, Introduction

Initial Public Offer, Public Offer, Private Placement, Special Placement

98. Which of the options below is one of the Value Added Services (VAS) currently being offered by the NSE to its listed companies?

Corporate Relations

Institutional Governance

Analyst Coverage

Investor Services

99. Which one of the following columns displays the status of a security?

Security Board state

Security Board status

Security update

Instrument update

100. Which of the following is not a function of Monitoring and Enforcement unit

Issue circular and bulletin to the market

Risk based supervision of Dealing Firm

Tracking inspection feedback and deadlines

Conduct special investigations

Ats Batch 1 2015

1. Which of these statements is true about the Maximum downward price for a security?

2.

What first name or nickname would you like us to use?

2. Who are the APEX regulators of the capital Market ?

3. Which of these statements is true about the Maximum upward price for a security?

4. One for the following is not a benefit of FIX?

5. Mr. A has two (2) children B and C and he intends to cross his shares to his two (2) children without passing through the floor of the Exchange. What is the mode of this transaction called?

6. Clearing House Numbers and investors' number are one and the same for the investors. Do you agree?

7. The Index is useful for:

8. The NSE Index includes which of the following in the computation

9. Why is backing up data files important?

10. The Registrar is a professional who operates in ...

11. A Probate Letter is…

12. Unclaimed dividends are caused by one of the under listed or all of them

13. Which of the following most adequately describes self-regulatory Organisation

14. Which of the following is the apex regulator of the Nigerian Capital Market?

15. Which Committee of the National Council of The Exchange is most directly involved with making rules, regulations and guidelines for Dealing Members?

16. Which of the following is not a stakeholder in The Exchange’s rules making process:

17. According to NSE Article 2, a Dealing Member has a responsibility to report any breach of the Articles by another Member. Which of the following is the implication of failure to report such breach?

18. Who can enter transactions during Pre-Open Adjust and Pre-Close Adjust sessions?

19. What are the different trading sessions in X-Stream ?

20. When can a market maker enter two way quotes ?

21. Select from the statements below, what the art of good Time management does not depict:

22. FIX was first conceived by the equity trading departments of;

23. The NSE is a government organization

24. CSR stands for?

25. What should you do if someone asks you for your password

26. Which of the following is not a function of Registrars

27. Which of the following best describes the functions of the LSR Department?

28. Trading Account Positions can be seen via which table?

29. Oscar Onyema is the______ of The Nigeria Stock Exchange

30. Parties to a primary market transaction are

31. What is Asset Co-mingling ?

32. What should you do if you see a stranger walking in the halls of your building?

33. The following are the nine stages of Quotation except:

34. What is the standard period for rules exposure to stakeholders:

35. One of the following is not a column on the Securities table?

36. Professional Etiquette is presenting a ______ professional image.

37. Which of these is not within the direct control of Broker Dealer Regulation Department

38. A modern stock broking environment which should have minimum of three layers of controls. Which of the following is not a control layer

39. Customer Due Diligence procedures requires:

40. Why are registrars considered so important in the capital market

41. The following are currently traded on the NSE except

42. Limit up Limit Down applies to individual stocks whilst index circuit breaker applies to broad index

43. Which of the following does not require a licensing Agreement with the NSE?

44. The back office department is made up of

45. Which of these statements is true ?

46. What is WON?

47. When sending or forwarding email you should make sure that it does not:

48. What is the importance of the newly introduced Issuers Portal?

49. Who are the participants of the call over trading ?

50. Role of a stockbroker in a primary market transaction include:

51. Professional Ethics encompasses the following:

52. Stages in a stockbroking circle is made up of:

53. An order quantity must be filled as soon as it becomes available on the market, otherwise the order is cancelled, this order is known as a ?

54. Which of these is an example of a Traditional Market Vendor?

55. Which of the following best describes the roles of the financial market are:

56. A market maker is involved in all but one of the following

57. Which of these statements from the Code of Conduct Rules is false ?

58. The trade comparison, clearing & Settlement function is handled by:

59. All but one of the following currently exists on NSE

60. The following are the roles of Corporate Communications except

61. What is AON?

62. When constructing a password you should:

63. Which fields can be amended in a buy or sell order ?

64. Describe what reconstruction is?

65. Which of the following is a requirement for listing on the ASeM board?

66. Which of these statements is true?

67. Which of the following statements is false : When speaking _______________

68. What type of events do we co-ordinate in Corporate communications department?

69. How many Boards do we have on the NSE?

70. The accounts maintenance function is handled by:

71. Which of the following statements is false : A Professional needs to exhibit

72. The following are objectives of Market Regulation except:

73. Product Management is responsible for all but one of the following

74. What is conflict of interest?

75. Which of following is not a unit in Broker Dealer Regulation Department

76. In Order Entry, which of these options is not an Order Type?

77. The list below indicates the steps to prioritize your daily tasks, excluding which word: