Ats Batch 1 2015
AUTOMATED TRADING SYSTEM EXAM QUESTION
- 1.
Stages in a stockbroking circle is made up of:
- A.
Arrival, Business Relationship and Satisfaction
- B.
Pre-Arrival, Arrival, Business Relationship and Satisfaction
- C.
Marketing, Business Relationship, verification, contract note and Bank
- D.
Marketing, opening account, paying cash, execution of mandate and contract note
Correct Answer
B. Pre-Arrival, Arrival, Business Relationship and Satisfaction -
- 2.
The back office department is made up of
- A.
Customer service & Compliance
- B.
Operations & Finance
- C.
Customer service & Finance
- D.
Operation & Business Development unit
Correct Answer
B. Operations & Finance -
- 3.
The trade comparison, clearing & Settlement function is handled by:
- A.
Front office
- B.
Back office
- C.
Settlement Office
- D.
Service support office
Correct Answer
B. Back office -
- 4.
The accounts maintenance function is handled by:
- A.
Service support unit
- B.
Customer service
- C.
Front Office
- D.
Back office
Correct Answer
D. Back office -
- 5.
Which of the following best describes the roles of the financial market are:
- A.
Create liquidity
- B.
Allocate scarce resources from savers to investors
- C.
Creates an avenue to save
- D.
Creates security for your asset
Correct Answer
B. Allocate scarce resources from savers to investors -
- 6.
Primary market transaction include:
- A.
Rights Issue, Private Placement, Special Placement, Public Offer
- B.
Initial Public Offer, Public Offer, Private Placement
- C.
Initial Public Offer, Public Offer, Private Placement, Introduction
- D.
Initial Public Offer, Public Offer, Private Placement, Special Placement
Correct Answer
B. Initial Public Offer, Public Offer, Private Placement -
- 7.
Parties to a primary market transaction are
- A.
Issuing house, stockbroker, reporting accountant, solicitor, AMCON
- B.
Issuing house, stockbroker, reporting accountant, SEC, registrar
- C.
Issuing house, stockbroker, EFCC, solicitor, registrar
- D.
Issuing house, stockbroker, reporting accountant, solicitor, registrar
Correct Answer
D. Issuing house, stockbroker, reporting accountant, solicitor, registrar -
- 8.
Role of a stockbroker in a primary market transaction include:
- A.
Marketing, Liaising with CAC, Pricing, Allocation, Research & Listing
- B.
Marketing, Liaising with SEC, Pricing, Allocation, Research & Listing
- C.
Marketing, Liaising with NSE, Pricing, Allocation, Research & Listing
- D.
Marketing, Liaising with CBN, Pricing, Allocation, Research & Listing
Correct Answer
C. Marketing, Liaising with NSE, Pricing, Allocation, Research & Listing -
- 9.
Which of the following is not a function of Monitoring and Enforcement unit
- A.
Issue circular and bulletin to the market
- B.
Risk based supervision of Dealing Firm
- C.
Tracking inspection feedback and deadlines
- D.
Conduct special investigations
Correct Answer
D. Conduct special investigations -
- 10.
Which of following is not a unit in Broker Dealer Regulation Department
- A.
Surveillance
- B.
Licensing Relationship Management
- C.
Enforcement and Monitoring
- D.
Tips and complaints management
Correct Answer
A. Surveillance -
- 11.
Which of these is not within the direct control of Broker Dealer Regulation Department
- A.
Ensuring the firm engage compliance officer
- B.
Managing complaints from both clients and firms
- C.
Ensuring that listed companies hold AGM
- D.
Conduct pre-trade inspection for firms that have been issued license
Correct Answer
C. Ensuring that listed companies hold AGM -
- 12.
All customer related and transaction information regardless of mode of communication must be retained for a minimum period of:
- A.
Four Years
- B.
Two Years
- C.
Ten Years
- D.
Six Years
Correct Answer
D. Six Years -
- 13.
A modern stock broking environment which should have minimum of three layers of controls. Which of the following is not a control layer
- A.
Risk Management
- B.
Compliance Management
- C.
Password Management
- D.
Internal Audit
Correct Answer
C. Password Management -
- 14.
Professional Ethics encompasses the following:
- A.
The personal standards of behavior expected of a professional
- B.
The corporate standards of behavior expected of a professional
- C.
The personal and corporate standards of behavior expected of a professional
- D.
The corporate standards of behavior expected of a professional
Correct Answer
C. The personal and corporate standards of behavior expected of a professional -
- 15.
Business Ethics refers to a written set of guidelines by an organization to help its
- A.
Employees
- B.
Management
- C.
Employees, Management & Directors
- D.
Employees, Management, with the exclusion of Directors
- E.
To conduct their actions in accordance with its primary values and ethical standards
Correct Answer
C. Employees, Management & Directors -
- 16.
The basic principles underlying ethical conduct of individuals and professionals are ------------- in number:
- A.
7
- B.
5
- C.
4
- D.
6
Correct Answer
B. 5 -
- 17.
Customer Due Diligence procedures requires:
- A.
One-off customer identification procedure at account opening stage
- B.
Periodic assessment of customers transaction history
- C.
Continuous update, monitoring, assessment and reports on i and ii above to management and regulatory authorities
- D.
None of the above
Correct Answer
C. Continuous update, monitoring, assessment and reports on i and ii above to management and regulatory authorities -
- 18.
The least number of identifiable possible ethical threats that a professional has to face in a well-structured firm are:
- A.
5
- B.
3
- C.
4
- D.
2
Correct Answer
A. 5 -
- 19.
The NSE is a government organization
- A.
True
- B.
False
- C.
Not Sure
- D.
Perhaps
Correct Answer
B. False -
- 20.
CSR stands for?
- A.
Corporate Social Responsibility
- B.
Corporation of Society Responsibility
- C.
Corporate Social Relationship
- D.
Composition of Social Relations
Correct Answer
A. Corporate Social Responsibility -
- 21.
What type of events do we co-ordinate in Corporate communications department?
- A.
Bell ringing only
- B.
Bell ringing and Facts behind the listing
- C.
Closing Gong Ceremony, Facts Behind the Listing, Fact Behind the Figures, conferences
- D.
Trade Fair, Closing Gong Ceremony, fact behind the figures, fact behind the listing, conferences, investors clinics
Correct Answer
D. Trade Fair, Closing Gong Ceremony, fact behind the figures, fact behind the listing, conferences, investors clinics -
- 22.
Oscar Onyema is the______ of The Nigeria Stock Exchange
- A.
Executive Director
- B.
CEO
- C.
DG
- D.
Manager
- E.
Senior Vice President
Correct Answer
B. CEO -
- 23.
The following are the roles of Corporate Communications except
- A.
Communicate clearly and effectively the Brand Essence and Promise to internal and external stakeholders
- B.
Establish The NSE as the CSR/Sustainability facilitator of the Nigerian capital market by developing and implementing CSR initiatives
- C.
Drive brand/product awareness and engagement through traditional and digital capabilities
- D.
Examine The NSE operational processes
Correct Answer
D. Examine The NSE operational processes -
- 24.
What is Asset Co-mingling ?
- A.
Mixing up many investors account
- B.
Mixing up all proprietary accounts
- C.
Mixing up all proprietary and clients’ assets
- D.
Mixing up all proprietary and clients’ shares
Correct Answer
C. Mixing up all proprietary and clients’ assets -
- 25.
Describe what reconstruction is?
- A.
Increasing share volume/value
- B.
Decreasing share value/volume
- C.
Increasing/decreasing share volume/value
- D.
None of the above
Correct Answer
C. Increasing/decreasing share volume/value -
- 26.
Describe the concept of DVP
- A.
Delivery versus pay back
- B.
Deliver versus protect
- C.
Delivery versus payment
- D.
Simultaneous delivery versus payment
Correct Answer
D. Simultaneous delivery versus payment -
- 27.
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?
- A.
Cross deal
- B.
OTC extra
- C.
Call over system
- D.
Nominal transfer
Correct Answer
D. Nominal transfer -
- 28.
Clearing House Numbers and investors’ number are one and the same for the investors. Do you agree?
- A.
True
- B.
False
- C.
Not sure
Correct Answer
B. False -
- 29.
The Index is useful for:
- A.
Performance Benchmarking
- B.
Measuring Economic performance
- C.
To forecast
- D.
All of the above
- E.
None of the Above
Correct Answer
D. All of the above -
- 30.
The NSE Index includes which of the following in the computation
- A.
Preference shares
- B.
Bonds
- C.
Equities
- D.
All of the above
- E.
None of the Above
Correct Answer
C. Equities -
- 31.
One of the following statements is not correct. Which one?
- A.
Sample-based Indices are composed of all the highly capitalized and perhaps the most profitable companies spread across key sectors of the economy.
- B.
Indices cannot be constructed for individual portfolios
- C.
The phenomenon of indexes based on few stocks is widely accepted
- D.
Ease of conversion to cash and vice versa is important in stock selection into
- E.
None of the Above
Correct Answer
B. Indices cannot be constructed for individual portfolios -
- 32.
One of the following statements is true. Which one?
- A.
DJIA is an All-share Index
- B.
Sample size must be very large to construct an index
- C.
Divisor adjustments are undertaken when bonuses are issued
- D.
The NSE 30 Index is composed of all the highly capitalized and perhaps the most profitable companies spread across key sectors of the economy.
- E.
None of the Above
Correct Answer
D. The NSE 30 Index is composed of all the highly capitalized and perhaps the most profitable companies spread across key sectors of the economy. -
- 33.
One of the following statements is incorrect on a Bear Market
- A.
A period of positive returns in the broader market of between 6-10 percent
- B.
A period in which investment prices rises and optimism
- C.
It must occur within six months of the year
- D.
It occurs when unemployment is low and inflation is slowing down
- E.
None of the above
Correct Answer
E. None of the above -
- 34.
Why is backing up data files important?
- A.
Backup up data is not necessary for a user
- B.
Backing up data is the work of the IT Administrator
- C.
Backups ensure that the information you need is there when you need it especially during disaster
Correct Answer
C. Backups ensure that the information you need is there when you need it especially during disaster -
- 35.
What should you do if you see a stranger walking in the halls of your building?
- A.
Visitors will always find their ways around offices
- B.
Do not be distracted by visitors around or in your office
- C.
Always escort visitors. Have them wait in lobby for you and escort them back when your business is completed.
Correct Answer
C. Always escort visitors. Have them wait in lobby for you and escort them back when your business is completed. -
- 36.
When constructing a password you should:
- A.
You should use your family member name, sports name, pet name and add a number on the end
- B.
Use phrases or misspelled words with embedded numbers and special characters
- C.
Use sequenced letters and numbers from your keyboard
- D.
All of the above
Correct Answer
B. Use phrases or misspelled words with embedded numbers and special characters -
- 37.
What should you do if someone asks you for your password
- A.
If it is your boss give your password to him/her
- B.
You can share your password and possibly change it later
- C.
Always says NO, and report the event as an incident
Correct Answer
C. Always says NO, and report the event as an incident -
- 38.
When sending or forwarding email you should make sure that it does not:
- A.
Create a chain mail situation
- B.
Have an attachment file
- C.
Follow general business practices
- D.
All of the above
Correct Answer
A. Create a chain mail situation -
- 39.
The Registrar is a professional who operates in ...
- A.
The money market
- B.
The supper market
- C.
The capital market
- D.
Oyingbo market
- E.
The banks
Correct Answer
C. The capital market -
- 40.
A Probate Letter is…
- A.
A letter from a friend
- B.
A letter of guarantee from a bank
- C.
A legal document on a deceased estate who left behind a Will
- D.
A love letter
- E.
A letter showing details of a probe
Correct Answer
C. A legal document on a deceased estate who left behind a Will -
- 41.
Unclaimed dividends are caused by one of the under listed or all of them
- A.
Failure of Registrars to update their clients registers
- B.
Ignorance of shareholders
- C.
Failure of the postal system
- D.
All of the above
Correct Answer
D. All of the above -
- 42.
Which of the following is not a function of Registrars
- A.
Preparing of annual reports for client companies
- B.
B. Dividend payments
- C.
C. Posting of annual reports
- D.
D. Keeping of unclaimed dividends accounts
Correct Answer
A. Preparing of annual reports for client companies -
- 43.
Why are registrars considered so important in the capital market
- A.
They are supper humans
- B.
They are very kind
- C.
They answer all shareholders
- D.
All transactions are verified by Regiatrars
Correct Answer
D. All transactions are verified by Regiatrars -
- 44.
The following are objectives of Market Regulation except:
- A.
To avoid agency problem
- B.
To prevent manipulation of market prices by unscrupulous individuals
- C.
To build great business entities
- D.
To make life easy
Correct Answer
D. To make life easy -
- 45.
Which of these does not include units of Listings Regulation Department
- A.
Listings Analysis
- B.
Listings Compliance
- C.
Listings Sales and Retention
- D.
Listings enforcement
Correct Answer
C. Listings Sales and Retention -
- 46.
Which of the following units is responsible for receiving applications for new issue?
- A.
Listings Analysis
- B.
Listings Compliance
- C.
Listings Sales and Retention
- D.
Listings enforcement
Correct Answer
A. Listings Analysis -
- 47.
What is the importance of the newly introduced Issuers Portal?
- A.
To accept application for new issues
- B.
To enable issuers file annual returns and corporate actions
- C.
To allow brokers trade on securities from the diaspora
- D.
To allow brokers trade securities from within Nigeria
Correct Answer
B. To enable issuers file annual returns and corporate actions -
- 48.
The following are the nine stages of Quotation except:
- A.
Application/Packaging Stage
- B.
NSE Quotations Approval/SEC Registration Stage
- C.
Brokers Dealer engagement
- D.
Completion Board Meeting Stage
Correct Answer
C. Brokers Dealer engagement -
- 49.
How many Boards do we have on the NSE?
- A.
4
- B.
2
- C.
3
- D.
1
Correct Answer
B. 2 -
- 50.
Which of the following best describes the functions of the LSR Department?
- A.
Decrease the number of listings on the various boards & manage existing listed companies
- B.
Managing existing non-listed companies and increase number of listings
- C.
Proffering solutions to the needs of prospect companies & increase the number of listings on the various boards
- D.
Increase the number of listings on the various boards & manage existing listed companies
Correct Answer
D. Increase the number of listings on the various boards & manage existing listed companies -
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Mar 18, 2022Quiz Edited by
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May 04, 2015Quiz Created by
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