Ats Batch 2 2016

100 Questions | Total Attempts: 70

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Ats Batch 2  2016

AUTOMATED TRADING SYSTEM EXAM QUESTION


Questions and Answers
  • 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

  • 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

  • 3. 
    The trade comparison, clearing & Settlement function is handled by:
    • A. 

      Front office

    • B. 

      Back office

    • C. 

      Settlement Office

    • D. 

      Service support office

  • 4. 
    The accounts maintenance function is handled by:
    • A. 

      Service support unit

    • B. 

      Customer service

    • C. 

      Front Office

    • 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

  • 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

  • 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

  • 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

  • 9. 
    Which of the following is not a function of Monitoring and Enforcement unit
    • A. 

      Issue circular and bulletin to the market

    • B. 

      Organize training for Dealing Member Firm

    • C. 

      Tracking inspection feedback and deadlines

    • 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

  • 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

  • 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

  • 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

  • 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

  • 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

  • 16. 
    The basic principles underlying ethical conduct of individuals and professionals are ------------- in number:
    • A. 

              7

    • B. 

              5

    • C. 

          4

    • D. 

          6

  • 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

  • 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

  • 19. 
    The NSE is a government organization
    • A. 

      True

    • B. 

      Perhaps

    • C. 

      Not Sure

    • D. 

      False

  • 20. 
    CSR stands for?
    • A. 

      Corporate Social Responsibility

    • B. 

      Corporation of Society Responsibility

    • C. 

      Corporate Social Relationship

    • D. 

      Composition of Social Relations

  • 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

  • 22. 
    Oscar Onyema is the______ of The Nigeria Stock Exchange
    • A. 

        Executive Director

    • B. 

          CEO

    • C. 

      DG

    • D. 

        Manager

    • E. 

      Senior Vice President

  • 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

  • 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

  • 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

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