Ats Batch1 2014

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The given answer states that the maximum downward price movement in one day for a security is 9.75%. This means that the price of the security can decrease by a maximum of 9.75% in a single day. This information is important for investors and traders as it helps them understand the potential risk associated with the security. It also allows them to make informed decisions regarding buying or selling the security based on their risk tolerance and investment goals.

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

The correct answer is 5 because the question asks how many pillars drive the NSE strategy, and the answer option "5" indicates that there are five pillars. This suggests that the NSE strategy is supported and guided by five key pillars.

A Probate Letter is a legal document that pertains to the estate of a deceased individual who has left behind a Will. This letter is used to initiate the probate process, which involves validating the Will and distributing the assets and property according to the deceased person's wishes. It is an important document in the administration of the deceased person's estate and ensures that their final wishes are carried out in a legal and orderly manner.

The correct answer is "Futures" because all the other options - Equities, Bonds, and ETFs - are already traded on the NSE (National Stock Exchange). Futures, on the other hand, refer to a type of derivative contract that allows traders to buy or sell an asset at a predetermined price in the future. While futures may be traded on other exchanges, they are not yet traded on the NSE.

A self-regulatory organization is an entity or association that creates and enforces rules and regulations within a specific industry or profession. These rules are designed to ensure ethical behavior, protect consumers, and maintain industry standards. The organization is responsible for monitoring and enforcing compliance with these rules, often through disciplinary actions or sanctions. Therefore, "making rules" is the most appropriate description for a self-regulatory organization.

The apex regulator of the Nigerian Capital Market is the Securities and Exchange Commission. They are responsible for regulating and supervising the activities of all participants in the capital market, including stockbrokers, issuing houses, and investment advisers. The Securities and Exchange Commission ensures fair and transparent operations in the market, protects investors' interests, and promotes the development and growth of the capital market in Nigeria.

The correct answer is Trading Account Table. The trading account is a financial statement that shows the revenue and expenses related to the core operations of a business. It includes the cost of goods sold, direct expenses, and indirect expenses. The trading account table is where these positions are recorded and can be viewed.

Market Makers can enter transactions during Pre-Open Adjust and Pre-Close Adjust sessions. Market Makers are individuals or firms that help facilitate trading in a particular security by providing liquidity. They are responsible for maintaining a fair and orderly market by continuously quoting bid and ask prices. During Pre-Open Adjust and Pre-Close Adjust sessions, Market Makers play a crucial role in adjusting the opening and closing prices of securities by entering transactions. Traders and Firm Managers may also have the ability to enter transactions during these sessions, but the question specifically asks for the group that can enter transactions, and the correct answer is Market Makers.

The Securities and Exchange Commission (SEC) is the correct answer because it is the regulatory body responsible for overseeing and regulating the capital market in Nigeria. The SEC is tasked with protecting investors, maintaining fair and efficient markets, and promoting capital formation. They enforce regulations and rules that govern the activities of market participants such as stockbrokers, investment advisers, and public companies. The Central Bank of Nigeria, Chartered Institute of Stock Brokers, and Chartered Institute of Bankers of Nigeria may have roles in the financial industry, but they are not the apex regulators of the capital market.

WON stands for "Working Order Notification" in the context of this question. It refers to the requirement that an order quantity must be filled as soon as it becomes available on the market by only one client. If the order is not filled by a single client, the order remains open on the market. This means that the order is not expired or filled partially, but rather remains active until it is completely filled by a single client.

The art of good time management does not depict "Fast ranging." This means that being able to quickly move or change things is not a characteristic of effective time management. Instead, it focuses on organizing, planning, and arranging tasks in a systematic and efficient manner. Fast ranging implies a haphazard approach to managing time, which is not conducive to productivity and effectiveness.

The trade comparison, clearing, and settlement function is handled by the back office. This is because the back office is responsible for processing and settling trades, ensuring that all transactions are accurately recorded, and coordinating with external parties such as clearinghouses and custodian banks. The back office also handles the reconciliation of trades, manages the settlement process, and ensures compliance with regulatory requirements.

A Dealing Member Firm of the Nigerian Stock Exchange is required to submit various reports to The Exchange, including Quarterly Financial Statements, Monthly Transaction Reports, and Audited Financial Statements. However, a Due Diligence Statement is not among the reports that need to be submitted. The purpose of a Due Diligence Statement is to provide a comprehensive assessment of a company's financial health, risk factors, and potential liabilities to potential investors or acquirers. While it is an important document for conducting thorough research and analysis, it is not a mandatory report that needs to be submitted to The Exchange.

The given answer, "Best Execution," is the correct answer because it is not a major violation of the Rules and Regulations Governing Dealing Members. Best execution refers to the obligation of brokers to execute client orders promptly and at the best available price. While it is an important aspect of trading, it is not considered a violation in itself. On the other hand, market manipulation and insider trading, fraud, and money laundering and terrorist financing are all major violations that are strictly prohibited in the financial markets.

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 ensures that the customer's information is regularly reviewed and any changes or suspicious activities are reported to the relevant parties. By doing so, the company can maintain compliance with regulations and mitigate the risk of money laundering or other illicit activities.

The mode of this transaction is called nominal transfer because Mr. A intends to transfer his shares to his two children without involving the floor of the Exchange. A nominal transfer refers to the transfer of ownership or title without any actual exchange of funds or assets. In this case, Mr. A is simply transferring his shares to his children without any monetary transaction or involvement of the stock exchange.

If someone asks you for your password, it is important to always say NO and report the event as an incident. Sharing your password with anyone, even if they are your boss, can compromise the security of your personal information and accounts. It is crucial to follow best practices and never disclose your password to anyone, as it helps protect your privacy and prevent unauthorized access to your accounts. Reporting the incident can also help prevent further security breaches and ensure that appropriate actions are taken to address the situation.

The correct answer is The capital market. The Registrar is a professional who operates in the capital market. The capital market is a financial market where long-term securities such as stocks and bonds are bought and sold. The Registrar's role in the capital market is to maintain records of ownership, transfer securities, and ensure compliance with regulations. They play a crucial role in facilitating the smooth functioning of the capital market and providing transparency and accountability to investors.

The correct answer is "Preparing of annual reports for client companies." Registrars are responsible for maintaining records of shareholders, managing share transfers, and ensuring accurate dividend payments. They also keep track of unclaimed dividends accounts. However, the preparation of annual reports is typically the responsibility of the company's management or the company secretary, not the registrar.

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 the Primary Market Maker. This firm plays a crucial role in ensuring liquidity in the primary market by providing buy and sell quotes for the security. They are responsible for maintaining an orderly market and facilitating trading activities for the security they are designated as the primary market maker for.

The Rules and Adjudication Committee is most directly involved with making rules, regulations, and guidelines for Dealing Members. This committee is responsible for developing and implementing the framework that governs the conduct of Dealing Members in the exchange. They ensure that the rules and regulations are fair, transparent, and in line with industry standards. Additionally, they also handle any disputes or violations of the rules by Dealing Members and make adjudications accordingly.

During the Pre-Open Session, both Limit Orders 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 of these order types can be used during the Pre-Open Session to execute trades.

The given question is asking for the column that is not present in the Securities table. The Securities table consists of columns related to financial securities, such as Reference Price, Open Quantity, and Bid Depth. However, Firm Name is not a column typically found in a Securities table. It is more commonly associated with a separate table that stores information about the firms or companies involved in the securities market.

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 bid and ask prices for securities during these phases of the market.

The correct answer is I, II and III only. This is because these practices are explicitly mentioned as prohibited in the Rules and Regulations Governing Dealing Members. Disclosing customers' information or acting in a way that would harm them or any other party is a violation of privacy and trust. Establishing fictitious accounts to execute transactions is fraudulent behavior. The unauthorized use of customers' funds or commingling the firm's cash account with that of customers is a breach of financial regulations. Opening clients' accounts after observing the required Know-Your-Client procedure is a necessary practice and not prohibited.

CSR stands for Corporate Social Responsibility, which refers to a company's commitment to operate in an ethical and sustainable manner, taking into account the impact of its actions on society and the environment. It involves activities and initiatives aimed at benefiting stakeholders, such as employees, customers, communities, and the environment, beyond just maximizing profits. CSR encompasses various aspects, including philanthropy, environmental sustainability, ethical business practices, and social initiatives, all of which contribute to the overall well-being of society.

Unclaimed dividends can be caused by any of the listed reasons or a combination of them. Firstly, if registrars fail to update their clients' registers, it can result in unclaimed dividends as the shareholders' information is not accurately recorded. Secondly, shareholders' ignorance can also contribute to unclaimed dividends, as they may not be aware of their entitlements or how to claim them. Lastly, if the postal system fails to deliver dividend checks or notifications to shareholders, it can lead to unclaimed dividends. Therefore, all of the mentioned factors can contribute to unclaimed dividends.

The correct answer is "Brokers Dealer Engagement". The given options describe the various stages of the quotation process. The Application/Packaging Stage involves submitting the necessary documents and information for the quotation. The NSE Quotations Approval/SEC Registration Stage involves obtaining approval from the relevant authorities. The Completion Board Meeting Stage is where the final decision regarding the quotation is made. However, "Brokers Dealer Engagement" is not a stage in the quotation process.

The correct answer is Consumer Goods, Natural Resources & Conglomerates. These sectors are represented on the boards of the NSE, indicating that companies from these industries have a presence and influence in the stock exchange. This suggests that there are companies involved in the production and sale of consumer goods, companies involved in the extraction and utilization of natural resources, and conglomerates - large corporations with diverse business interests - that are actively involved in the NSE.

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.

The option "Open" is not an Order Type in Order Entry. The other options, Limit, Market, and Private, are commonly used Order Types in trading. "Open" does not specify a specific type of order and is therefore not considered an Order Type in this context.

The correct answer is Pre-Open, Pre-Open Adjust, Continuous Trading, Pre-Close Adjust, Close. This answer lists the correct trading sessions in X-Stream, starting with Pre-Open, followed by Pre-Open Adjust, Continuous Trading, Pre-Close Adjust, and finally Close.

The Index is useful for performance benchmarking as it allows for comparisons and evaluations of performance against a standard or target. It is also useful for measuring economic performance as it provides a quantitative measure of economic indicators. Additionally, the Index can be used for forecasting as it provides insights into current trends and can help predict future outcomes. Therefore, the correct answer is "All of the above".

The LSR Department's functions involve both increasing the number of listings on the various boards and managing existing listed companies. This means that the department is responsible for attracting new companies to be listed on the boards and ensuring the smooth operation and management of companies that are already listed.

A market maker is a financial institution or individual that provides liquidity to a market by quoting both buy and sell prices for a particular security. The trading band refers to the range within which a market maker is allowed to quote prices. If a market maker quotes outside this trading band, it would mean that they are deviating from the established guidelines and potentially manipulating the market. Therefore, it is true that a market maker should not quote outside the trading band for any given day.

When speaking, it is important to show interest and enthusiasm in order to engage the listener and convey your message effectively. This helps to maintain the listener's attention and makes the conversation more enjoyable and interactive. Therefore, the statement "Do not show interest and enthusiasm" is false.

The back office department is responsible for the internal operations and financial functions of a company. This includes tasks such as record keeping, data entry, processing transactions, managing accounts, and ensuring compliance with regulations. Therefore, the correct answer is Operations & Finance, as these two areas are typically the main components of the back office department.

The distance covered at the recent NSE Corporate Challenge Race to fight against cancer was 5k.

The NSE Index includes equities in its computation. Equities refer to stocks or shares of a company that represent ownership in the company. The NSE Index is a stock market index that tracks the performance of a specific group of equities listed on the National Stock Exchange (NSE). It is used as a benchmark to measure the overall performance of the stock market. Preference shares and bonds are not included in the computation of the NSE Index.

The list is indicating steps to prioritize daily tasks, and the word "Consideration" is excluded from the list. This suggests that "Consideration" is not a step in the process of prioritizing tasks. Therefore, the correct answer is "Consideration" because it is not included in the list of steps.

Professional etiquette is the set of rules and behaviors that govern professional interactions and conduct. Presenting a positive professional image means projecting a confident, respectful, and competent demeanor. This includes dressing appropriately, maintaining good grooming, exhibiting good communication skills, and displaying a positive attitude. By presenting a positive professional image, individuals can create a favorable impression on others, build trust and credibility, and enhance their professional reputation.

The correct answer is Pre-Arrival, Arrival, Business Relationship and Satisfaction. In the stockbroking circle, the first stage is Pre-Arrival, where potential clients are identified and contacted. The next stage is Arrival, where the clients visit the stockbroker's office or website. The third stage is Business Relationship, where the stockbroker establishes a relationship with the client and understands their needs and investment goals. The final stage is Satisfaction, where the stockbroker ensures that the client is happy with the services provided and maintains a long-term relationship with them.

The most appropriate avenue open to an aggrieved investor to seek redress in the event of unfair treatment by a Dealing Member is to report the case to the Nigerian Stock Exchange. The Nigerian Stock Exchange is the regulatory body that oversees the operations of stockbrokers and ensures fair and transparent practices in the Nigerian capital market. By reporting the case to the Nigerian Stock Exchange, the aggrieved investor can seek the necessary intervention and resolution of their complaint.

Professional Ethics encompasses both personal and corporate standards of behavior expected of a professional. This means that professionals are expected to adhere to certain ethical standards in their personal conduct as well as in their professional or corporate conduct. These standards may include honesty, integrity, respect for others, confidentiality, and compliance with laws and regulations. By considering both personal and corporate standards, professionals are able to maintain a high level of ethical behavior in all aspects of their professional lives.

During trading in X-Stream, you will not be able to see your counter party details.

The newly introduced Issuers Portal is important because it allows issuers to file annual returns and corporate actions. This means that issuers can easily submit their required documentation and information, such as financial statements and reports, to regulatory authorities and stakeholders. It streamlines the process and ensures that issuers are in compliance with regulations and can effectively communicate with investors and other interested parties. This portal simplifies the administrative tasks for issuers and promotes transparency and accountability in the securities market.

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 listed are all relevant stakeholders in the rules making process as they are directly involved in the stockbroking and capital market industry in Nigeria.

The financial market plays a crucial role in allocating scarce resources from savers to investors. It provides a platform for individuals and institutions with excess funds (savers) to invest their money, which in turn is utilized by individuals and businesses (investors) to fund their projects and ventures. This helps in efficient allocation of resources, as it enables the transfer of funds from those who have surplus to those who have a need for capital. By facilitating this process, the financial market promotes economic growth and development.