X-gen Certification April 2014

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

Explanation

The correct answer is Pre-Arrival, Arrival, Business Relationship and Satisfaction. This sequence represents the stages in a stockbroking circle. Pre-Arrival refers to the initial preparation and research done before engaging with a stockbroker. Arrival is the point at which the client meets with the stockbroker to discuss their investment goals and needs. Business Relationship involves the establishment of a professional relationship between the client and the stockbroker. Finally, Satisfaction refers to the client's level of contentment with the services provided by the stockbroker.

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About This Quiz
X-gen Certification April 2014 - Quiz

This quiz evaluates knowledge essential for finance professionals, covering stockbroking, back office functions, financial markets, and primary market transactions.

2. The back office department is made up of

Explanation

The back office department is responsible for the internal operations and financial management of a company. This includes tasks such as processing transactions, managing inventory, handling payroll, and maintaining financial records. Therefore, the correct answer is Operations & Finance, as these two functions are typically the main components of the back office department.

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

Explanation

The trade comparison, clearing & settlement function is handled by the back office. This is because the back office is responsible for the administrative and support functions of a financial institution, including trade processing, reconciliation, and settlement. The front office is typically involved in client-facing activities such as sales and trading, while the settlement office may be a part of the back office or a separate department specifically focused on settlement processes. The service support office may provide assistance and support to various departments, but it is not directly responsible for trade comparison, clearing, and settlement functions.

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4. The accounts maintenance function is handled by:

Explanation

The correct answer is "Back office." The back office is responsible for handling the accounts maintenance function. This department typically deals with administrative tasks, such as processing transactions, managing records, and ensuring compliance with regulations. They work behind the scenes to support the front office and customer service teams by handling the financial and operational aspects of maintaining accounts.

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

Explanation

The financial market plays a crucial role in allocating scarce resources from savers to investors. It allows savers to invest their money in various financial instruments such as stocks, bonds, and mutual funds, which in turn provides capital to businesses and entrepreneurs for investment and growth. By facilitating the transfer of funds from those who have surplus savings to those who need capital, the financial market helps to efficiently allocate resources and promote economic growth.

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6. Primary market transaction include:

Explanation

The correct answer is "Initial Public Offer, Public Offer, Private Placement". Primary market transactions refer to the issuance of new securities by a company to raise capital. An Initial Public Offer (IPO) is the first sale of a company's shares to the public. A Public Offer is a sale of securities to the general public. Private Placement involves the sale of securities to a select group of investors, such as institutional investors or high net worth individuals. These three options cover the various types of primary market transactions. The other options either miss out on one or more of these types or include additional types not mentioned in the question.

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7. Parties to a primary market transaction are

Explanation

The correct answer is Issuing house, stockbroker, reporting accountant, solicitor, registrar. In a primary market transaction, the issuing house is responsible for issuing new securities, the stockbroker facilitates the buying and selling of these securities, the reporting accountant ensures the accuracy of financial information, the solicitor handles legal aspects of the transaction, and the registrar maintains records of shareholders and their holdings.

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

Explanation

The correct answer is Marketing, Liaising with NSE, Pricing, Allocation, Research & Listing. In a primary market transaction, a stockbroker plays a crucial role in marketing the securities to potential investors. They also liaise with the National Stock Exchange (NSE) to ensure compliance with regulations and facilitate the listing of the securities. Additionally, stockbrokers are responsible for determining the pricing of the securities, allocating them to investors, conducting research on the securities, and assisting with the listing process.

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9. Which of the following are prohibited practices in the Rules and Regulations Governing Dealing Members: I. Disclosing customers' information or acting in a way that would harm the customer or any other party. II. Establishing fictitious accounts to execute some transactions. III. The unauthorized use of customers' funds or commingling the firm's cash account with that of customers. IV. Opening of clients account only after observing the required Know-Your-Client procedure.

Explanation

The correct answer is I, II and III only. This is because the Rules and Regulations Governing Dealing Members prohibit disclosing customers' information or acting in a way that would harm the customer or any other party (I). They also prohibit establishing fictitious accounts to execute transactions (II) and unauthorized use of customers' funds or commingling the firm's cash account with that of customers (III). Opening clients' accounts after observing the required Know-Your-Client procedure (IV) is not a prohibited practice.

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10. What is the most appropriate avenue open to an aggrieved investor to seek redress in the event of unfair treatment by a Dealing Member?

Explanation

If an investor experiences unfair treatment by a Dealing Member, the most appropriate avenue for seeking redress would be to report the case to the Nigerian Stock Exchange. The Nigerian Stock Exchange is the regulatory body responsible for overseeing and regulating activities in the Nigerian stock market. They have the authority to investigate and take action against any unfair practices or misconduct by Dealing Members. By reporting the case to the Nigerian Stock Exchange, the investor can ensure that their complaint is properly addressed and that appropriate action is taken against the Dealing Member.

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11. The Investor Protection Fund (IPF) is not meant to compensate investors who suffer pecuniary loss through which of the following?

Explanation

The Investor Protection Fund (IPF) is designed to compensate investors for losses caused by the bankruptcy of a dealing member firm, negligence of a dealing member firm, and defalcation committed by employees of a dealing member firm. However, it is not intended to compensate investors for losses resulting from unanticipated adverse market conditions and sentiment. These types of losses are considered inherent risks of investing and are not within the scope of the IPF's coverage.

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12. A Dealing Member Firm of the Nigerian Stock Exchange is required to submit the following reports to The Exchange, except which of the following?

Explanation

A Dealing Member Firm of the Nigerian Stock Exchange is required to submit various reports to The Exchange to ensure transparency and compliance. These reports include Quarterly Financial Statements, Monthly Transaction Reports, and Audited Financial Statements. However, a Due Diligence Statement is not required to be submitted to The Exchange. This statement is typically prepared by a potential investor or buyer to assess the financial and legal status of a company before entering into a transaction.

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13. The under-listed are major violations of the Rules and Regulations Governing Dealing Members except?

Explanation

The correct answer is "Best Execution." This is because the other options mentioned, such as market manipulation and insider trading, fraud, and money laundering and terrorist financing, are all considered major violations of the Rules and Regulations Governing Dealing Members. However, "Best Execution" refers to the obligation of brokers to execute client orders in a manner that provides the best possible result for the client, and it is not a violation but rather a requirement in the financial industry.

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14. Professional Ethics encompasses the following:

Explanation

Professional ethics encompasses both the personal and corporate standards of behavior expected of a professional. This means that professionals are expected to adhere to certain ethical guidelines not only in their personal conduct but also in their professional roles within a corporate setting. These standards include principles such as honesty, integrity, respect, and responsibility. By considering both personal and corporate standards, professionals are able to maintain ethical behavior in all aspects of their professional lives.

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

Explanation

Business ethics refers to a written set of guidelines that an organization provides to its employees, management, and directors. These guidelines are meant to help them conduct their actions in line with the organization's primary values and ethical standards. This means that all individuals within the organization, including employees, management, and directors, are expected to adhere to these guidelines and act ethically in their professional roles.

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

Explanation

The basic principles underlying ethical conduct of individuals and professionals are generally considered to be five in number. These principles include honesty, integrity, fairness, respect for others, and responsibility. These principles serve as a foundation for ethical decision-making and guide individuals and professionals in their behavior and interactions with others. By adhering to these principles, individuals and professionals can maintain a high standard of ethical conduct in their personal and professional lives.

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17. Customer Due Diligence procedures requires:

Explanation

Customer Due Diligence procedures require continuous update, monitoring, assessment, and reports on the one-off customer identification procedure at the account opening stage and the periodic assessment of customers' transaction history to both management and regulatory authorities. This is necessary to ensure that the customer's information is up to date, their transactions are monitored for any suspicious activity, and reports are provided to the relevant parties for compliance and regulatory purposes.

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

Explanation

A well-structured firm typically has a robust ethical framework in place, which helps minimize ethical threats. These threats can include conflicts of interest, breaches of confidentiality, unfair treatment of employees, unethical decision-making, and non-compliance with laws and regulations. The higher the number of identifiable ethical threats, the more challenging it becomes for professionals to navigate their work environment ethically. Therefore, the least number of identifiable ethical threats that a professional has to face in a well-structured firm is 5.

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19. What does CAMCAN Stand for

Explanation

CAMCAN stands for Capital Market Correspondents Association of Nigeria. This organization is likely a professional association or group that consists of correspondents or journalists who cover the capital market in Nigeria. They may provide news, analysis, and reports on the activities and developments in the Nigerian capital market. This association aims to promote transparency, information dissemination, and professionalism in reporting on the capital market.

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20. CSR stands for?

Explanation

CSR stands for Corporate Social Responsibility. This term refers to a company's commitment to operating in an ethical and sustainable manner, taking into account its impact on society and the environment. It involves initiatives and actions taken by businesses to contribute to the well-being of society, such as philanthropy, environmental conservation, and ethical labor practices. By practicing CSR, companies aim to go beyond profit-making and actively contribute to the betterment of society.

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

Explanation

The Corporate communications department coordinates various types of events including trade fairs, bell ringing ceremonies, conferences, and events related to the facts behind the figures and the listing. These events help in promoting the company's image, communicating important information to stakeholders, and building relationships with clients and investors.

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22. How many pillars drive the NSE strategy?

Explanation

The correct answer is 4. This suggests that there are four pillars that drive the NSE strategy. However, without further context or information about the NSE strategy, it is difficult to provide a specific explanation for why there are four pillars. It could be that these pillars represent key areas or components of the strategy, each contributing to its overall success. Each pillar may have its own specific goals, objectives, or actions that align with the overall strategy.

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23. How many years has the National Essay competition been in existence?

Explanation

The National Essay competition has been in existence for 10 years.

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24. What is Asset Co-mingling ?

Explanation

Asset co-mingling refers to the practice of combining both proprietary and clients' assets together. It involves mixing up the assets owned by a company or organization with the assets owned by their clients or customers. This can occur in various financial or investment scenarios, such as when a financial institution combines their own funds with those of their clients in a single account or investment vehicle. By doing so, it becomes more difficult to distinguish between the assets owned by the company and those owned by the clients, potentially leading to issues related to transparency, accountability, and potential conflicts of interest.

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25. Describe what reconstruction is?

Explanation

Reconstruction refers to the process of increasing or decreasing both the value and volume of shares. It involves making changes to the company's structure, operations, or financials in order to improve its share value and increase the number of shares traded. This can be done through various strategies such as mergers, acquisitions, divestitures, or implementing new business plans. The aim of reconstruction is to enhance the overall performance and attractiveness of the company's shares in the market.

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26. Describe the concept of DVP

Explanation

Simultaneous delivery versus payment (DVP) is a concept in financial transactions where the delivery of securities or assets occurs at the same time as the payment for those securities or assets. This ensures that both parties involved in the transaction fulfill their obligations simultaneously, reducing the risk of one party not delivering the securities or assets after receiving payment. DVP is commonly used in securities trading to ensure a secure and efficient settlement process.

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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?

Explanation

The mode of this transaction is called "Nominal transfer". This refers to the transfer of shares from one person to another without involving any monetary exchange. In this case, Mr. A intends to transfer his shares to his two children, B and C, without going through the floor of the Exchange, meaning the shares will not be traded publicly. Instead, the transfer will be done directly between Mr. A and his children, without any financial transaction taking place.

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

Explanation

The statement suggests that Clearing House Numbers and investors' numbers are the same for investors. However, the correct answer is False. Clearing House Numbers and investors' numbers are not the same. Clearing House Numbers are unique identification numbers assigned to clearing houses, which facilitate the clearing and settlement of trades. On the other hand, investors' numbers are unique identification numbers assigned to individual investors. These numbers serve different purposes and are not interchangeable.

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29. The Index is useful for:

Explanation

The Index is useful for all of the above options. It can be used for performance benchmarking to compare the performance of different entities or sectors. It can also be used to measure economic performance by tracking the changes in the index value over time. Additionally, the index can be used to forecast future trends based on the historical data and patterns observed in the index. Therefore, all the given options are correct.

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

Explanation

The NSE Index includes equities in its computation. Equities refer to shares of stock or ownership in a company. The NSE Index is a stock market index that tracks the performance of a specific group of stocks listed on the National Stock Exchange (NSE) in India. By including equities in the computation, the NSE Index provides a measure of the overall performance of the stock market by tracking the movement of these selected stocks.

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

Explanation

The given statement "Indices cannot be constructed for individual portfolios" is incorrect. Indices can be constructed for individual portfolios, such as a portfolio index that tracks the performance of a specific investment portfolio. This allows investors to compare the performance of their portfolio against a benchmark or other portfolios.

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

Explanation

The correct answer is the NSE 30 Index is composed of all the highly capitalized and perhaps the most profitable companies spread across key sectors of the economy. This statement accurately describes the composition of the NSE 30 Index, which is an index that represents the performance of the top 30 companies listed on the Nigerian Stock Exchange. These companies are selected based on their market capitalization and profitability, and they span across various sectors of the economy.

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

Explanation

The given answer, "None of the above," is correct because all of the statements listed are incorrect on a Bear Market. In a bear market, the broader market experiences a period of negative returns, not positive returns. Investment prices decline, and pessimism prevails instead of optimism. There is no requirement for a bear market to occur within six months of the year. Additionally, low unemployment and slowing inflation are characteristics of a healthy economy, not a bear market.

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34. How many IT Technical requirement baselines are available in the Exchange under the Minimum IT Standard?  

Explanation

There are five IT Technical requirement baselines available in the Exchange under the Minimum IT Standard.

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35. How many functions will OMS brokers expected to perform for Post Trade?

Explanation

OMS brokers are expected to perform multiple functions for post-trade activities. These functions typically include trade confirmation, settlement instruction, trade matching, and trade allocation. Therefore, the correct answer is 4, indicating that OMS brokers are expected to perform four functions for post-trade activities.

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36. How many functions will OMS brokers expected to perform for ON Trade?

Explanation

OMS brokers are expected to perform multiple functions for ON Trade. These functions may include order routing, trade execution, order management, risk management, compliance monitoring, and reporting. Therefore, the correct answer is 6, as OMS brokers are expected to perform six functions for ON Trade.

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37. What is the TRIAD of Information Security?

Explanation

The TRIAD of Information Security refers to the three fundamental principles that are essential for ensuring the security of information. These principles are process, confidentiality, and integrity. Process refers to the procedures and protocols in place to manage and protect information. Confidentiality ensures that information is only accessible to authorized individuals. Integrity ensures that information is accurate, complete, and trustworthy. Together, these three principles form the foundation of a comprehensive information security framework.

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38. Who is the first person to contact when there is security breach or when your password has been hijacked?

Explanation

The Information Security Officer is the correct answer because they are responsible for overseeing and managing an organization's information security program. In the event of a security breach or password hijacking, the Information Security Officer would be the first person to contact as they have the expertise and knowledge to handle such incidents. They would be able to assess the situation, investigate the breach, and implement necessary measures to mitigate the damage and prevent future incidents. The CEO, Compliance Office, and Line Manager may have some involvement in the process, but the Information Security Officer would be the primary point of contact.

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

Explanation

The correct answer is the capital market. The registrar is a professional who operates in the capital market. This market refers to the financial market where long-term securities such as stocks and bonds are bought and sold. The registrar plays a crucial role in maintaining accurate records of ownership and transactions of these securities. They ensure that shareholders or bondholders receive their dividends or interest payments, and also handle the issuance of new securities.

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40. A Probate Letter is…

Explanation

A Probate Letter is a legal document that pertains to the estate of a deceased individual who had a Will. It is used to validate the Will and ensure that the deceased person's assets are distributed according to their wishes. This letter is an important part of the probate process, which involves the court overseeing the administration of the estate. It provides details regarding the deceased person's assets, debts, and beneficiaries, and is essential for the proper settlement of the estate.

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

Explanation

Unclaimed dividends can be caused by any or all of the reasons mentioned. If the registrars fail to update their clients' registers, it can lead to dividends going unclaimed. Similarly, if shareholders are unaware or ignorant about their entitlements, they may not claim their dividends. Additionally, if there is a failure in the postal system, shareholders may not receive their dividend checks, resulting in unclaimed dividends. Therefore, all of the listed reasons can contribute to unclaimed dividends.

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

Explanation

Registrars are responsible for maintaining the register of shareholders, managing share transfers, and ensuring the accuracy of shareholder records. They also handle dividend payments and keep track of unclaimed dividends. However, preparing annual reports for client companies is typically the responsibility of accountants or financial professionals, not registrars. Therefore, it is not a function of registrars.

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

Explanation

Registrars are considered important in the capital market because they are responsible for verifying all transactions. This ensures that the buying and selling of securities are accurately recorded, preventing any fraudulent or incorrect activities. By verifying transactions, registrars help maintain the integrity and transparency of the capital market, providing confidence to shareholders and investors.

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44. The following are objectives of Market Regulation except:

Explanation

The objective of market regulation is not to make life easy. Market regulation aims to ensure fair and transparent practices in the market, prevent manipulation of prices, protect investors, and maintain market stability. Making life easy is not a primary goal of market regulation, but rather creating a level playing field for all participants and promoting a healthy and efficient market environment.

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

Explanation

The correct answer is "Listings Sales and Retention" because it does not include units of the Listings Regulation Department. This department is responsible for analyzing, ensuring compliance, and enforcing listings regulations. However, Listings Sales and Retention focus on the sales and retention of listings, which is a separate function from the regulatory aspects of the department.

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

Explanation

Listings Analysis is responsible for receiving applications for new issue. This unit is likely in charge of reviewing and analyzing the applications submitted for new issues, ensuring they meet the necessary requirements and criteria. They may assess the financial viability, compliance with regulations, and overall suitability of the proposed new issue before making a decision. Their role is crucial in the initial evaluation and processing of new issue applications.

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

Explanation

The newly introduced Issuers Portal is important because it allows issuers to file their annual returns and corporate actions. This means that issuers can easily and efficiently submit the necessary paperwork and information regarding their annual financial reports and corporate actions such as dividends or stock splits. This portal streamlines the process for issuers and ensures that the necessary documentation is filed in a timely manner, increasing transparency and accountability in the securities market.

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

Explanation

The correct answer is "Brokers Dealer engagement." The given stages are all part of the process of obtaining a quotation, except for the engagement of brokers and dealers. The other stages involve the application and packaging of the quotation, obtaining approval and registration from the NSE and SEC, and the completion board meeting stage. The engagement of brokers and dealers is not mentioned as a specific stage in this process.

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

Explanation

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

Explanation

The LSR Department's main functions are to increase the number of listings on the various boards and to manage existing listed companies. This means that the department is responsible for attracting new companies to be listed on the boards and ensuring that the already listed companies are effectively managed.

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

Explanation

One of the requirements for listing on the ASeM board is having an operating track record of 2 years. This means that companies must have been in operation for at least 2 years before they can be listed on the ASeM board. This requirement ensures that the companies have a certain level of stability and experience before they can access the benefits and opportunities provided by the ASeM board.

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

Explanation

Analyst coverage is one of the value-added services currently being offered by the NSE to its listed companies. This service involves providing companies with research reports and analysis from financial analysts, which can help them gain insights into market trends, investor sentiment, and potential investment opportunities. It enables listed companies to have a better understanding of their industry and market position, which can aid in decision-making and strategic planning. By offering analyst coverage, the NSE aims to enhance the value proposition for its listed companies and attract more investors.

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53. Choose from the options below sectors represented on the boards of the NSE?

Explanation

The correct answer is Consumer Goods, Natural Resources & Conglomerates. This is because the National Stock Exchange (NSE) is a stock exchange in India, and the sectors represented on its boards typically include a wide range of industries. Consumer goods refer to products that are purchased for personal use, natural resources include industries such as mining and forestry, and conglomerates are large corporations that own and operate multiple businesses in different industries. These sectors are commonly represented on the boards of the NSE to ensure diversity and representation of various industries in the stock market.

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54. Which of the following products is not yet traded on the NSE?

Explanation

The correct answer is "Futures". Futures are not yet traded on the NSE (National Stock Exchange). Equities, Bonds, and ETFs (Exchange-Traded Funds) are all products that are currently traded on the NSE.

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55. A firm appointed by the NSE as the foremost liquidity provider of a particular security, and has undertaken to assume the role is referred to as

Explanation

A primary market maker is a firm that has been selected by the NSE to be the main liquidity provider for a specific security. They have agreed to take on this responsibility and play a crucial role in ensuring that there is enough liquidity in the market for that particular security.

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56. How many asset classes are presently on the NSE?

Explanation

The correct answer is 3 because the question is asking about the number of asset classes presently on the NSE. The NSE is the National Stock Exchange, which is a stock exchange in India. Asset classes refer to different types of investments, such as equities, bonds, and derivatives. Therefore, the answer of 3 suggests that there are currently three different types of investments available on the NSE.

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57. A Market Maker shall not quote outside the trading band for any given day.

Explanation

A market maker is a participant in the financial market who provides liquidity by continuously quoting bid and ask prices for a specific security. The trading band refers to the range within which the market maker is allowed to quote their prices. By stating that a market maker shall not quote outside the trading band, it means that they are required to stay within the specified range when providing their bid and ask prices. Therefore, the statement is true.

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58. Which of the following is not a function of the Product Management department?

Explanation

The Product Management department is responsible for identifying market problems, quantifying them to ensure market stability, creating liquidity in all asset classes, and providing insight and marketing assistance for product positioning and communication strategies. However, designating a trader within the firm for each security assigned by NSE to a Market Maker is not a function of the Product Management department.

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

Explanation

A self-regulatory organization is an entity that creates and enforces rules and regulations within a specific industry or profession. It is responsible for setting standards, monitoring compliance, and taking disciplinary actions when necessary. Making rules is the most appropriate description for a self-regulatory organization as it reflects their primary function of establishing and implementing guidelines to ensure ethical practices and maintain industry standards.

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

Explanation

The Securities and Exchange Commission is the correct answer because it is the apex regulator of the Nigerian Capital Market. The SEC is responsible for regulating and supervising all entities and persons involved in the capital market, including stockbrokers, securities exchanges, and investment advisers. It ensures the protection of investors, maintains fair and efficient markets, and promotes the development of the capital market in Nigeria. The other options listed are not apex regulators of the Nigerian Capital Market.

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

Explanation

The Rules and Adjudication Committee is responsible for making rules, regulations, and guidelines for Dealing Members. This committee is directly involved in setting the standards and guidelines that Dealing Members must adhere to in their operations. They ensure that all members comply with the rules and regulations set by the National Council of The Exchange. This committee plays a crucial role in maintaining the integrity and fairness of the exchange by enforcing these rules and regulations.

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

Explanation

The Nigerian Council of Registered Insurance Brokers is not a stakeholder in The Exchange's rules making process because it is an organization that represents insurance brokers, not stockbrokers or participants in the capital market. The other options mentioned in the question, such as the Association of Stockbroking Houses of Nigeria, Chartered Institute of Stockbrokers, Central Securities Clearing System Plc, and Capital Market Solicitors Association, are all directly related to the stockbroking and capital market industry, making them stakeholders in the rules making process.

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

Explanation

The standard period for rules exposure to stakeholders is 14 days. This allows stakeholders to review and provide feedback on the proposed rules within a reasonable timeframe. It strikes a balance between giving stakeholders enough time to thoroughly analyze the rules and make informed comments, while also ensuring that the process does not become unnecessarily prolonged.

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64. 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

Explanation

The correct answer is "III only" because NSE Article 149 does not allow for the exemption of maintaining confidentiality when a dealing member feels that the shares purchased by a client are large enough to influence the market. However, the article does allow for exceptions in cases of suspected criminal activities such as treason, money laundering, terrorist financing, drug trafficking, and other felonies, as well as for protecting the interests of the dealing member and defending against legal actions.

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65. 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

Explanation

The correct answer is "All of the above." This means that all of the options mentioned in the question are specifically mentioned in NSE articles 104-108 as trading abuses that are prohibited. These include price manipulation and illegal market dealings, circulation of false information/front running, maneuvering with the intention to defraud, and pegging/stabilizing of securities.

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66. What is conflict of interest?

Explanation

The correct answer is "A tension between competing obligations and responsibilities." Conflict of interest refers to a situation where an individual or organization is involved in multiple interests, and these interests may potentially compromise their ability to fulfill their responsibilities objectively and impartially. It creates a conflict between different obligations and responsibilities, making it challenging to make unbiased decisions.

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67. 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?

Explanation

If a Dealing Member fails to report a breach of the Articles by another Member, the implication is that the member himself / itself is guilty of a breach of the rules and regulations of the exchange. This means that by not fulfilling their responsibility to report the breach, the member is also considered to be in violation of the exchange's rules and regulations.

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

Explanation

During the Pre-Open Session, both Limit and Market Orders can be entered. A Limit Order is an instruction to buy or sell a security at a specific price or better, while a Market Order is an instruction to buy or sell a security at the best available price in the market. Therefore, both types of orders can be entered during the Pre-Open Session.

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

Explanation

The given options are all columns that could potentially be found on a Securities table, except for "Firm name". The other options, such as "Reference Price", "Open Quantity", and "Bid Depth", are all commonly used columns in securities trading to track price information, quantity available for trading, and depth of bids respectively. However, "Firm name" is not a standard column in a Securities table as it does not provide any relevant information about the security itself.

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

Explanation

The correct answer is Trading Account Table. This table displays the positions in the trading account, which includes information about the buying and selling of goods, as well as any direct expenses related to the trading activities. This table provides a clear overview of the trading activities and helps in analyzing the profitability of the business.

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

Explanation

The option "Open" is not an Order Type in Order Entry. This is because "Open" does not specify a specific type of order, such as a limit order or a market order. It is likely that "Open" refers to the status of an order, indicating that it is currently open and active. The other options, "Limit" and "Market," represent specific types of orders with different execution conditions, while "Private" does not typically refer to an order type in the context of Order Entry.

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

Explanation

Market Makers can enter transactions during Pre-Open Adjust and Pre-Close Adjust sessions. These sessions are periods of time before the regular trading hours where certain adjustments are made to the market. Market Makers are specialized traders who help provide liquidity to the market by continuously buying and selling securities. They play a crucial role in maintaining an orderly market and are allowed to enter transactions during these specific sessions to facilitate the smooth functioning of the market.

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

Explanation

The correct answer is "Security Board state" because this column specifically displays the status of a security. The other options do not mention anything about the status of a security, making them incorrect choices.

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74. A Market order can only be entered when?

Explanation

A market order can only be entered when there are existing limit orders on the opposite side of the order book. Market orders are executed immediately at the best available price in the market, so they require counterparties willing to sell at that price. Existing limit orders provide those counterparties, as they specify the price at which the order can be executed. If there are no limit orders on the opposite side of the book, there would be no specific prices available for execution, making it impossible to enter a market order.

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

Explanation

Private orders cannot change to negotiated deals. Once a private order is placed, it cannot be altered or converted into a negotiated deal. Private orders are typically used for large or specialized transactions and are not visible on the market. They require a minimum order value and can be withdrawn by the party who placed the order if needed.

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76. 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 ?

Explanation

The correct answer is FOK, which stands for Fill or Kill. This type of order requires that the entire order be filled immediately or it will be cancelled. It is commonly used when a trader wants to ensure that their order is executed quickly and in its entirety, without any partial fills. This type of order is often used in fast-moving markets or when there is a need for immediate execution.

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77. Which of these statements is true ?

Explanation

The correct answer is "Auction takes place at the end of pre-open Adjust and Pre-Close Adjust." This means that the auction occurs after the pre-open adjust session and the pre-close adjust session.

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78. Which of these statements are true ?

Explanation

The statement "Order duration types available during Pre-open -Session (Good Till Open), Good Till Date and Day" is true. This means that during the pre-open session, traders have the option to choose between three order duration types: Good Till Open, Good Till Date, and Day.

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79. Which of these statements is true?

Explanation

Crossing orders are on manual and are matched at best market price. This means that crossing orders are not executed automatically but require manual intervention. They are matched at the best available price in the market, ensuring that the trade is executed at the most favorable price possible.

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

Explanation

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

Explanation

not-available-via-ai

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

Explanation

The statement "He/she will leave the floor without taking permission from the market controller" is false because according to the Code of Conduct Rules, individuals are required to seek permission from the market controller before leaving the trading floor.

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

Explanation

The participants of the call over trading include the Broker, Recording clerk, Call over chairman, and Call Board officer.

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

Explanation

The Securities and Exchange Commission is the correct answer because it is the regulatory body responsible for overseeing the capital market in Nigeria. They are responsible for ensuring transparency, fairness, and investor protection in the market. The Central Bank of Nigeria is the country's central banking institution and is not specifically focused on regulating the capital market. The Chartered Institute of Stock Brokers and Chartered Institute of Bankers of Nigeria are professional organizations that provide education and certification for individuals in the financial industry, but they are not the regulatory authorities for the capital market.

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

Explanation

The correct answer is "Pre-Open, Pre-Open adjust, Continuous Trading, Pre-Close Adjust, Close". This answer includes all the different trading sessions in X-Stream, starting with the Pre-Open session where orders are entered and modified, followed by the Pre-Open adjust session where order adjustments are made. Then, the Continuous Trading session takes place where regular trading occurs. After that, the Pre-Close Adjust session allows for further order adjustments before finally ending with the Close session.

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

Explanation

A market maker can enter two-way quotes during the Pre-Open adjust phase, Continuous Trading phase, and Pre-Close Adjust phase. This means that they can provide both buy and sell quotes for a particular security during these three phases of the market.

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

Explanation

In a buy or sell order, the fields that can be amended include Volume, Price, Account No, Market, Private, Fill Terms, and Duration. These fields allow the user to specify the quantity of the security to be bought or sold, the desired price, the account number associated with the transaction, the market in which the transaction will take place, any private instructions or notes, the fill terms (such as all or none), and the duration of the order (such as day order or good till canceled).

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88. What is WON?

Explanation

WON stands for "Working Order Notification" in the context of this question. It refers to the requirement that an order quantity must be filled immediately when it becomes available on the market, but only by one client. If the order is not filled by a single client, it will remain open on the market, awaiting a single client to fill it. This means that the order will not be partially filled or filled by multiple counterparties.

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89. What is AON?

Explanation

AON stands for "All or None." This means that an order quantity can be filled by more than one counterparty, but if any part of the order remains unfilled, it will still remain open to the market. In other words, the entire order must be filled completely or not at all.

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

Explanation

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

Explanation

The art of good time management does not depict "fast ranging." This means that time management is not about rushing through tasks or trying to complete them quickly without considering their importance or quality. Instead, it focuses on organizing, planning, and arranging tasks in a way that allows for effective and efficient use of time. Fast ranging implies a haphazard approach to managing time, which is not effective in achieving productivity and success.

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

Explanation

The list below indicates the steps to prioritize your daily tasks, excluding the word "Consideration". This suggests that "Consideration" is not a step in the process of prioritizing tasks. The other words in the list - Serious, Minor, and Urgent - are all potential steps in the process of prioritization. However, "Consideration" is not necessary to prioritize tasks as it may imply a more general or overall assessment rather than a specific step in the prioritization process.

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

Explanation

When speaking, it is important to show interest and enthusiasm in order to engage the listener and convey your message effectively. Showing interest and enthusiasm helps to capture the attention of the listener and make the conversation more engaging and enjoyable. It also signals to the listener that you are passionate about the topic and increases the chances of them being interested and receptive to what you are saying. Therefore, the statement "Do not show interest and enthusiasm" is false.

Submit
94. Professional Etiquette is presenting a ______ professional image.

Explanation

Professional etiquette is all about presenting oneself in a positive professional image. It involves displaying good manners, being respectful, and maintaining a positive attitude in the workplace. By demonstrating positive behavior and attitudes, individuals can create a pleasant and productive work environment, build strong professional relationships, and enhance their reputation in the business world. Therefore, the correct answer is "Positive."

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Who can enter transactions during Pre-Open Adjust and Pre-Close Adjust...
Which one of the following columns displays the status of a security?
A Market order can only be entered when?
One of these statements is not correct about a Private Order?
An order quantity must be filled as soon as it becomes available on...
Which of these statements is true ?
Which of these statements are true ?
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Who are the participants of the call over trading ?
Who are the APEX regulators of the capital Market ?
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When can a market maker enter two way quotes ?
Which fields can be amended in a buy or sell order ?
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Which of the following statements is false : A Professional needs to...
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The list below indicates the steps to prioritize your daily tasks,...
Which of the following statements is false : When speaking...
Professional Etiquette is presenting a ______ professional image.
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