Ats Batch1 2014
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 SatisfactionExplanation
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.Rate this question:
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- 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 & FinanceExplanation
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.Rate this question:
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- 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 officeExplanation
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.Rate this question:
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- 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 OfficeExplanation
The back office is responsible for handling the accounts maintenance function. This department typically deals with administrative and support tasks, such as processing transactions, managing paperwork, and maintaining records. They work behind the scenes to ensure the smooth operation of the organization's financial activities.Rate this question:
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- 5.
Which of the following best describes the roles of the financial market :
- 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 investorsExplanation
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.Rate this question:
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- 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 PlacementExplanation
The correct answer includes Initial Public Offer, Public Offer, and Private Placement. An Initial Public Offer (IPO) refers to the first sale of shares by a company to the public. A Public Offer is a sale of securities to the general public through a stock exchange. Private Placement involves the sale of securities directly to a select group of investors, usually institutions or high net worth individuals, without the need for a public offering. Therefore, the correct answer includes all three types of primary market transactions.Rate this question:
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- 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, RegistrarExplanation
The parties involved in a primary market transaction are the issuing house, stockbroker, reporting accountant, solicitor, and registrar. The issuing house is responsible for facilitating the issuance of securities, while the stockbroker assists in buying and selling securities on behalf of clients. The reporting accountant ensures that financial statements are accurate and reliable. The solicitor handles legal matters related to the transaction, and the registrar maintains records of shareholders and handles the transfer of securities.Rate this question:
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- 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 & ListingExplanation
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. Pricing of the securities is another responsibility, where the stockbroker helps determine the initial offering price. They also handle the allocation of securities to investors and conduct research to provide insights and recommendations to clients. Overall, the stockbroker's role is to facilitate the smooth execution of the primary market transaction.Rate this question:
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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.
- A.
I and II only
- B.
II and III only
- C.
II and IV only
- D.
I, II and III only
Correct Answer
D. I, II and III onlyExplanation
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.Rate this question:
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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 ?
- A.
Report the case to the Chartered Institute of Stockbrokers
- B.
Report the case to the Nigerian Stock Exchange
- C.
Report the case to the Securities and Exchange Commission
- D.
None of the above
Correct Answer
B. Report the case to the Nigerian Stock ExchangeExplanation
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.Rate this question:
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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 ?
- A.
Bankruptcy of a Dealing Member Firm
- B.
Negligence of a Dealing Member Firm
- C.
Defalcation committed by employees of a Dealing Member Firm in the course of normal business.
- D.
As a result of unanticipated adverse market conditions and sentiment
Correct Answer
D. As a result of unanticipated adverse market conditions and sentimentExplanation
The Investor Protection Fund (IPF) is designed to compensate investors who suffer pecuniary loss due to bankruptcy of a Dealing Member Firm, negligence of a Dealing Member Firm, or defalcation committed by employees of a Dealing Member Firm in the course of normal business. However, it is not meant to compensate investors for losses incurred as a result of unanticipated adverse market conditions and sentiment. These types of losses are considered inherent risks of investing and are not covered by the IPF.Rate this question:
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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 ?
- A.
Due Diligence Statement
- B.
Quarterly Financial Statement
- C.
Monthly Transaction Reports
- D.
Audited Financial Statement
Correct Answer
A. Due Diligence StatementExplanation
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.Rate this question:
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- 13.
The under-listed are major violations of the Rules and Regulations Governing Dealing Members except?
- A.
Market Manipulation and Insider Trading
- B.
Fraud
- C.
Best Execution
- D.
Money Laundering and Terrorist Financing
Correct Answer
C. Best ExecutionExplanation
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.Rate this question:
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- 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 professionalExplanation
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.Rate this question:
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- 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 & DirectorsExplanation
Business Ethics refers to a written set of guidelines by an organization to help its employees, management, and directors conduct their actions in accordance with its 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 in an ethical manner. By including all three groups in the answer, it emphasizes the importance of ethical behavior at all levels of the organization.Rate this question:
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- 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. 5Explanation
The basic principles underlying ethical conduct of individuals and professionals are 5 in number. This suggests that there are five fundamental principles that guide ethical behavior for both individuals and professionals. These principles likely include concepts such as honesty, integrity, fairness, respect, and responsibility. By adhering to these principles, individuals and professionals can ensure that their actions and decisions are morally sound and ethical.Rate this question:
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- 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 authoritiesExplanation
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.Rate this question:
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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:
- A.
5
- B.
3
- C.
4
- D.
2
Correct Answer
A. 5Explanation
In a well-structured firm, professionals are likely to face multiple ethical threats. The more complex and diverse the organization, the higher the chances of encountering ethical dilemmas. Therefore, the least number of identifiable possible ethical threats that a professional has to face in a well-structured firm would be 5. This suggests that professionals in such firms need to be aware of and prepared to navigate various ethical challenges to maintain integrity and uphold ethical standards.Rate this question:
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- 19.
What does CAMCAN Stand for ?
- A.
Capital Association Market Correspondents Associates of Nigeria
- B.
Capital Market Correspondents Association of Nigeria
- C.
Capital Market Association of Nigeria
- D.
Commission Association Management Correspondents Â
Correct Answer
B. Capital Market Correspondents Association of NigeriaExplanation
CAMCAN stands for Capital Market Correspondents Association of Nigeria. This association is likely a professional organization or group that represents correspondents or journalists who report on the capital market in Nigeria. They may provide information, analysis, and news related to the financial markets and investment opportunities in the country.Rate this question:
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- 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 ResponsibilityExplanation
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.Rate this question:
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- 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.
Bell Ringing, Facts Behind the Listing, Facts Behind the Figures, Conferences
- D.
Trade Fair, Bell Ringing, Facts Behind the Figures, Facts Behind the Listing, Conferences
Correct Answer
D. Trade Fair, Bell Ringing, Facts Behind the Figures, Facts Behind the Listing, ConferencesExplanation
The Corporate communications department coordinates a variety of events including Trade Fairs, Bell Ringing, Facts Behind the Figures, Facts Behind the Listing, and Conferences.Rate this question:
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- 22.
How many pillars drive the NSE strategy?
- A.
4
- B.
1
- C.
3
- D.
5
Correct Answer
D. 5Explanation
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.Rate this question:
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- 23.
How many years has the National Essay competition been in existence?
- A.
3
- B.
5
- C.
10
- D.
13
Correct Answer
C. 10Explanation
The National Essay competition has been in existence for 10 years.Rate this question:
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- 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’ assetsExplanation
Asset co-mingling refers to the practice of combining both proprietary and clients' assets together. This means that the assets owned by the company itself and those held on behalf of clients are mixed together. This can occur in various financial contexts, such as investment management or banking, where a company may pool the assets of multiple clients for efficiency or investment purposes. However, it is important to maintain proper segregation and accounting to ensure the protection and transparency of clients' assets.Rate this question:
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- 25.
Describe what reconstruction is :
- A.
Increasing share volume/value
- B.
Decreasing share value/volume
- C.
Increasing/decreasing share volume/value
- D.
Increasing/decreasing share value/volume
Correct Answer
D. Increasing/decreasing share value/volumeExplanation
Reconstruction refers to the process of making changes to a company's capital structure or operations in order to improve its financial performance. This can involve various strategies such as increasing or decreasing the volume of shares issued by the company, as well as increasing or decreasing the value of the shares. These changes are aimed at enhancing the overall value and attractiveness of the company to investors. Therefore, the correct answer is "Increasing/decreasing share value/volume."Rate this question:
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- 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 paymentExplanation
Simultaneous delivery versus payment (DVP) is a concept used in financial transactions, especially in securities trading. It refers to the simultaneous exchange of securities and funds between two parties involved in a transaction. This means that the seller delivers the securities to the buyer at the same time the buyer pays the agreed-upon amount for those securities. DVP ensures that both parties fulfill their obligations simultaneously, reducing the risk of one party not delivering the securities or the other party not making the payment. This concept helps to minimize settlement risk and ensures a smooth and secure transaction process.Rate this question:
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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?
- A.
Cross deal
- B.
OTC extra
- C.
Call over system
- D.
Nominal transfer
Correct Answer
D. Nominal transferExplanation
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.Rate this question:
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- 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. FalseExplanation
The statement is false because Clearing House Numbers (CHN) and investors' numbers are not the same. Clearing House Numbers are unique identification numbers assigned to clearing houses, which are financial institutions that facilitate the 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, hence they are not the same.Rate this question:
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- 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 aboveExplanation
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".Rate this question:
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- 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. EquitiesExplanation
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.Rate this question:
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- 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.
Which one of the following statements is true ?
- 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.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 a stock market index in Nigeria. It includes the most financially strong and profitable companies from various sectors, making it a representative index of the Nigerian economy.Rate this question:
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- 33.
Which 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 aboveExplanation
The given correct answer is "None of the above". This means that all of the statements mentioned in the question are correct on a Bear Market. A Bear Market is characterized by a period of negative returns in the broader market, investment prices falling, and pessimism prevailing. It is not dependent on specific timeframes, unemployment rates, or inflation levels.Rate this question:
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- 34.
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 charactersExplanation
When constructing a password, it is recommended to use phrases or misspelled words with embedded numbers and special characters. This combination of elements makes the password more complex and harder to guess or crack. Using personal information such as family member names, sports names, or pet names can be easily guessed by someone who knows you well or can find that information online. Similarly, using sequenced letters and numbers from the keyboard can be easily predicted or cracked by password-guessing algorithms. Therefore, using phrases or misspelled words with embedded numbers and special characters is the most secure option for creating a password.Rate this question:
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- 35.
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 incidentExplanation
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.Rate this question:
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- 36.
How many functions will OMS brokers expected to perform for ON Trade?
- A.
6
- B.
4
- C.
8
- D.
5
Correct Answer
A. 6Explanation
OMS brokers are expected to perform multiple functions for ON Trade. These functions may include order routing, trade execution, risk management, compliance monitoring, reporting, and settlement. Therefore, the correct answer is 6, as OMS brokers are expected to perform six functions for ON Trade.Rate this question:
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- 37.
What is the TRIAD of Information Security?
- A.
Compliance, Integrity and Availability
- B.
People, Process and Technology
- C.
Confidentiality, Integrity and Availability
- D.
Process, Confidentiality and Integrity
Correct Answer
D. Process, Confidentiality and IntegrityExplanation
The TRIAD of Information Security refers to the three fundamental principles that form the foundation of a secure information system. These principles are process, confidentiality, and integrity. Process refers to the procedures and protocols in place to manage and protect information. Confidentiality ensures that only authorized individuals have access to sensitive information. Integrity ensures that information is accurate, complete, and reliable. Together, these principles help to safeguard information from unauthorized access, alteration, or destruction.Rate this question:
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- 38.
Who is the first person to contact when there is security breach or when your password has been hijacked?
- A.
CEO
- B.
Compliance Office
- C.
Information Security Officer
- D.
Line Manager
Correct Answer
C. Information Security OfficerExplanation
The Information Security Officer is the correct answer because they are responsible for managing and responding to security breaches and incidents within an organization. They have the expertise and knowledge to handle such situations effectively and take appropriate measures to mitigate the impact of the breach. The CEO may not have the technical knowledge or expertise to handle security breaches, while the Compliance Office and Line Manager may not have the specific responsibility for dealing with security incidents.Rate this question:
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- 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 marketExplanation
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.Rate this question:
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- 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 WillExplanation
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.Rate this question:
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- 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 aboveExplanation
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.Rate this question:
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- 42.
Which of the following is not a function of Registrars :
- A.
Preparing of annual reports for client companies
- B.
Dividend payments
- C.
Posting of annual reports
- D.
Keeping of unclaimed dividends accounts
Correct Answer
A. Preparing of annual reports for client companiesExplanation
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.Rate this question:
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- 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 Registrars
Correct Answer
D. All transactions are verified by RegistrarsExplanation
Registrars are considered important in the capital market because they play a crucial role in verifying all transactions. They ensure that the buying and selling of securities are properly recorded and executed, maintaining accurate records of shareholders and their holdings. By verifying transactions, registrars help maintain transparency and integrity in the capital market, instilling confidence among investors. This is essential for a well-functioning market, as it ensures that all transactions are properly executed and recorded, reducing the risk of fraud or errors.Rate this question:
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- 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 easyExplanation
The objective of market regulation is to ensure fair and transparent practices in the market, prevent market manipulation, and protect the interests of investors and consumers. It aims to create a level playing field and maintain market integrity. However, the objective of making life easy is not typically a goal of market regulation. Market regulation focuses more on maintaining stability, efficiency, and trust in the market rather than making life easy for individuals.Rate this question:
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- 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 RetentionExplanation
The correct answer is Listings Sales and Retention because it does not include units of the Listings Regulation Department. The other options, Listings Analysis, Listings Compliance, and Listings Enforcement, are all units that fall under the Listings Regulation Department. Listings Sales and Retention may be a separate department or function within the organization, but it is not part of the Listings Regulation Department specifically.Rate this question:
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- 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 AnalysisExplanation
Listings Analysis is responsible for receiving applications for new issues. This unit is in charge of reviewing and analyzing the applications submitted for new listings. They assess the compliance of the applications with the listing requirements and make recommendations for approval or rejection. This unit plays a crucial role in the process of evaluating and accepting new listings on the platform.Rate this question:
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- 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 actionsExplanation
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.Rate this question:
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- 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 EngagementExplanation
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.Rate this question:
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- 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 companiesExplanation
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.Rate this question:
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Quiz Review Timeline +
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Current Version
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Mar 21, 2023Quiz Edited by
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May 16, 2014Quiz Created by
Mcnse
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