ATS BATCH 2 2014

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

Marketing, Liaising with CAC, Pricing, Allocation, Research & Listing

Marketing, Liaising with SEC, Pricing, Allocation, Research & Listing

Marketing, Liaising with NSE, Pricing, Allocation, Research & Listing

Marketing, Liaising with CBN, Pricing, Allocation, Research & Listing

2. Customer Due Diligence procedures requires :

One-off customer identification procedure at account opening stage

Periodic assessment of customers transaction history

Continuous update, monitoring, assessment and reports on (i) and (ii) above to management and regulatory authorities

None of the above

3. CSR stands for?

Corporate Social Responsibility

Corporation of Society Responsibility

Corporate Social Relationship

Composition of Social Relations

4. What should you do if someone asks you for your password ?

If it is your boss give your password to him/her

You can share your password and possibly change it later

Always says NO, and report the event as an incident

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

The money market

The supper market

The capital market

Oyingbo market

The banks

6. A Probate Letter is…

A letter from a friend

A letter of guarantee from a bank

A legal document on a deceased estate who left behind a Will

A love letter

A letter showing details of a probe

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

Failure of Registrars to update their clients registers

Ignorance of shareholders

Failure of the postal system

All of the above

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

Equities

Bonds

Futures

ETFs

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

Making announcements

Making arrests

Making rules

Making products

Making money

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

The maximum downward price movement in one day for a security is 9%

The maximum downward price movement in one day for a security is 9.75%

The maximum downward price movement in one day for a security is 8.75%

The maximum downward price movement in one day for a security is 10%

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

Central Bank of Nigeria

Charted Institute of Stock Brokers

Chartered Institute of Bankers of Nigeria

Securities and Exchange Commission

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

Organizing

Planning

Arranging

Fast ranging

13. Your own orders can be withdrawn from All except:

Order book by order

Order book

Market View

My Open Orders

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

Market Manipulation and Insider Trading

Fraud

Best Execution

Money Laundering and Terrorist Financing

15. 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

Tertiary Market Maker

Supplemental Market Maker

Primary Market Maker

Secondary Market Maker

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

Audit and Risk Management Committee

Disciplinary Committee

Governance and Remuneration Committee

Rules and Adjudication Committee

Technical Committee.

17. 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?

The member himself / itself is guilty of a breach of the rules and regulations of the exchange

The member will be suspended from trading immediately

The member will be liable to pay a fine to be determined by the Council of the exchange

The member will receive an official warning from the Council of the exchange

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

Limit and Market Orders

Limit Orders

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

Reference Price

Open Quantity

Bid Depth

Firm Name

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

Trading and Loss Account Table

Trading Account Table

Trade Events Table

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

The maximum upward price movement in one day for a security is 10%

The maximum upward price movement in one day for a security is 10.25%

The maximum upward price movement in one day for a security is 5%

The maximum upward price movement in one day for a security is 5.25%

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

He/she will not sit in a chair

He/she will not shake hands with qualified brokers

He/she will leave the floor without taking permission from the market controller

He/she will remain standing on the floor throughout the trading period

23. Professional Etiquette is presenting a ______ professional image.

Basic

Passive

Positive

Intermediate

24. Which of the following best describes the roles of the financial market :

Create liquidity

Allocate scarce resources from savers to investors

Creates an avenue to save

Creates security for your asset

25. Professional Ethics encompasses the following :

The personal standards of behavior expected of a professional

The corporate standards of behavior expected of a professional

The personal and corporate standards of behavior expected of a professional

The corporate standards of behavior expected of a professional

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

Association of Stockbroking Houses of Nigeria

Chartered Institute of Stockbrokers

Nigerian Council of Registered Insurance Brokers

Central Securities Clearing System Plc

Capital Market Solicitors Association

27. 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 ?

FOK

FAK

ICC

WON

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

The Broker, Recording Clerk, Call Over Chairman and Call Board officer

Recording Clerk, Call Over Chairman and Call Board Officer

X-Stream, Recording Clerk, Call Over Chairman and Call Board Officer

ATS, Recording Clerk, Call Over Chairman and Call Board Officer

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

Continuous Trading, Pre-Close Adjust, Close

Pre-Open, Pre-Open Adjust, Pre-Close Adjust, Close

Pre-Open Adjust, Continuous Trading, Pre-Close Adjust

Continuous Trading, Pre-Close, Pre-Close Adjust, Close

30. The back office department is made up of :

Customer service & Compliance

Operations & Finance

Customer Service & Finance

Operation & Business Development unit

31. What does CAMCAN Stand for ?

Capital Association Market Correspondents Associates of Nigeria

Capital Market Correspondents Association of Nigeria

Capital Market Association of Nigeria

Commission Association Management Correspondents

32. How many pillars drive the NSE strategy?

4

1

3

5

33. The NSE Index includes which of the following in the computation :

Preference Shares

Bonds

Equities

All of the above

None of the Above

34. Which of the following is not a function of Registrars :

Preparing of annual reports for client companies

Dividend payments

Posting of annual reports

Keeping of unclaimed dividends accounts

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

Application / Packaging Stage

NSE Quotations Approval / SEC Registration Stage

Brokers Dealer Engagement

Completion Board Meeting Stage

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

Decrease the number of listings on the various boards & manage existing listed companies

Managing existing non-listed companies and increase number of listings

Proffering solutions to the needs of prospect companies & increase the number of listings on the various boards

Increase the number of listings on the various boards & manage existing listed companies

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

True

False

Perhaps

Sometimes

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

Capital Market Solicitors Association

Association of Stockbroking Houses of Nigeria

Nigerian Stock Exchange

Securities and Exchange Commission

Chartered Institute of Stockbrokers

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

Traders and Firm Managers

Market Makers

Traders only

Firm managers only

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

Pre-Open, Pre-Open Adjust, Continuous Trading, Pre-Close Adjust, Close

Pre-Open, Pre-Open Adjust, Continuous Trading, Pre- Close, Pre-Close Adjust, Close

Pre-Open, Pre-Open Adjust, Continuous Trading, Close

Pre-Open, Continuous Trading, Pre-Close Adjust, Close

41. What is WON?

An order quantity must be filled as soon as it becomes available on the market, otherwise the order expires

An order quantity must be filled partially the rest of the order expires

An order quantity must be filled partially by more than 1 counterparty and the rest of the order expires

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

Watch with non - verbal cues

Do not show interest and enthusiasm

Concentrate on what is being said

There is need for eye contact

43. The Market View has disappeared in your default Workspace. How do you restore the view ?

Select File, Workspace, NSE Trader

Select File, Workspace, Open

Select File, Workspace, Open Preset, NSE Trader

Select File, View, Open

44. 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?

Cross deal

OTC extra

Call over system

Nominal transfer

45. The Index is useful for :

Performance benchmarking

Measuring economic performance

To forecast

All of the above

None of the Above

46. Which of these statements is true ?

Auction takes place at the end of : Pre-Open and Close session

Auction takes place at end of : Pre-open Adjust and Close sessions

Auction takes place at the end of : Close session

Auction takes at the end of : Pre-Open Adjust and Pre-Close Adjust sessions

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

Arrival, Business Relationship and Satisfaction

Pre-Arrival, Arrival, Business Relationship and Satisfaction

Marketing, Business Relationship, Verification, Contract Note and Bank

Marketing, Opening account, Paying cash, Execution of mandate and Contract note

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

7 days

14 days

21 days

28 days

42 days.

49. Parties to a primary market transaction are :

Issuing house, Stockbroker, Reporting Accountant, Solicitor, AMCON

Issuing House, Stockbroker, Reporting Accountant, SEC, Registrar

Issuing house, Stockbroker, EFCC, Solicitor, Registrar

Issuing house, Stockbroker, Reporting Accountant, Solicitor, Registrar

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

Due Diligence Statement

Quarterly Financial Statement

Monthly Transaction Reports

Audited Financial Statement

51. What could happen to compliance officers if they do not comply with the Anti - Money Laundering laws and regulations?

Their employers could face reputation damage, but the employee is immune from penalty.

Loss of job, prison penalties and fines, negative reputation to their employer.

Nothing. Only the financial institution’s legal counsel will be responsible for complying with laws.

Nothing. Only the staff directly handling transactions have to worry.

To conduct their actions in accordance with its primary values and ethical standards

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

True

False

Not sure

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

To accept application for new issues

To enable issuers file annual returns and corporate actions

To allow brokers trade on securities from the diaspora

To allow brokers trade securities from within Nigeria

54. Which of these statements are true ?

Order duration types available during Pre-open -Session (Good Till Open), Good Till Date and Day

Order duration types available during Pre-open –Market , Session (Good Till Open), Good Till Date and Day

Order duration types available during Pre-open –Immediate , Session (Good Till Open), Good Till Date and Day

Order duration types available during Pre-open –Pre-Close , Session (Good Till Open), Good Till Date and Day

55. What distance was covered at the resent NSE Corporate Challenge Race to fight against cancer?

8k

3k

7k

5k

56. The accounts maintenance function is handled by :

Service Support Unit

Customer Service

Front Office

Back Office

57. As part of their role in fighting money laundering, Dealing Member Firms should:

Designate a compliance officer.

Depend solely on The NSE staff for combating money laundering.

Refuse small cash deposits under the reporting threshold

Not open accounts for people considered politically exposed clients.

58. Why are registrars considered so important in the capital market ?

They are supper humans

They are very kind

They answer all shareholders

All transactions are verified by Registrars

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

Comments about everything

A sense of confidence

Warm smile

Firm handshake

60. 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.

I and II only

II and III only

II and IV only

I, II and III only

61. What is conflict of interest?

Not to worry about someone else’s interest if it competes with your own

A tension between two employees of the same organization

You have the same obligations and responsibilities as another party

A tension between competing obligations and responsibilities

62. The trade comparison, clearing & settlement function is handled by :

Front office

Back office

Settlement Office

Service Support Office

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

CEO

Compliance Office

Information Security Officer

Line Manager

64. Which of these does not include units of Listings Regulation Department :

Listings Analysis

Listings Compliance

Listings Sales and Retention

Listings Enforcement

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

Construction/Real Estate, Services & Petroleum

Agriculture, Services & Accounting

Consumer Goods, Natural Resources & Conglomerates

Financial Services, Healthcare & Power

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

Report the case to the Chartered Institute of Stockbrokers

Report the case to the Nigerian Stock Exchange

Report the case to the Securities and Exchange Commission

None of the above

67. What is Asset Co-mingling ?

Mixing up many investors account

Mixing up all proprietary accounts

Mixing up all proprietary and clients’ assets

Mixing up all proprietary and clients’ shares

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

Identifying market problems, quantifying them to make sure they do not affect the liquidity and stability of the market.

Creating liquidity in all asset classes in the market.

Providing insight and marketing assistance on an on-going and proactive basis with respect to product positioning and communication strategies.

Designating a trader within the firm for each security that has been assigned by NSE to a Market Maker.

69. Which of these statements is true?

Crossing orders are off manual and have to be approved by Market control

Crossing orders are on manuals and require Market control approval

Crossing orders are on manual and can be executed outside best market

Crossing orders are on manual and are matched at best market price

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

Serious

Consideration

Minor

Urgent

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

Limit

Market

Private

Open

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

Security, Volume, Price, Account No, Market, Private, Fill Terms, Duration

Volume, Price, Account No, Market, Private, Fill Terms, Duration

Price, Account No, Market, Private, Fill Terms, Duration

Account No, Market, Private, Fill Terms, Duration

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

Listings Analysis

Listings Compliance

Listings Sales and Retention

Listings enforcement

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

Security Board State

Security Board Status

Security Update

Instrument Update

75. Which one of the following statements is true ?

DJIA is an All-share Index

Sample size must be very large to construct an index

Divisor adjustments are undertaken when bonuses are issued

None of the Above

76. The following are objectives of Market Regulation except:

To avoid agency problem

To prevent manipulation of market prices by unscrupulous individuals

To build great business entities

To make life easy

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

Operating track record of 2 years

Minimum of 61 shareholders

Companies must retain a Designer Adviser(DA) to assist with regulatory compliance

At least 10% of share capital must be offered to the public as public float

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

A minimum Order value is required

Private Order cannot be viewed on the market

Private Order can change to Negogiated deal

Private order can be withdrawn

79. What is AON?

An order quantity can be filled by more than 1 counterparty and any unfilled quanity remains open to the market

An order quantity must be filled partially the rest of the order expires

An order quantity must be filled partially by more than 1 counterparty and the rest of the order expires

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

Corporate Relations

Institutional Governance

Analyst Coverage

Investor Services

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

5

3

4

2

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

3

5

10

13

83. 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

II and III

I, II and III

I, III and IV

All of the above

84. Primary market transaction include :

Rights Issue, Private Placement, Special Placement, Public Offer

Initial Public Offer, Public Offer, Private Placement

Initial Public Offer, Public Offer, Private Placement, Introduction

Initial Public Offer, Public Offer, Private Placement, Special Placement

85. What is the TRIAD of Information Security?

Compliance, Integrity and Availability

People, Process and Technology

Confidentiality, Integrity and Availability

Process, Confidentiality and Integrity

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

1

2

3

4

87. What happens to an order which is set as a pre-close order duration when the market is in continuous trading session:

The order status is set to Private and the order is visible in the market

The order status is set to Pre-Close and the order is not visible in the market

The order status is set to Private and the order is not visible to the market until closing

The order status is set to Open and the order is visible in the market

88. Which of these is an invalid order status not shown in the Orders table

Expired

Matched

Unplaced

Placed

89. A Market order can only be entered when?

There are only market orders on the opposite side of the order book

There are exisiting Limit orders on the opposite side of the book

There are orders on the security already

The opposite side of the order book is empty

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

7

5

4

6

91. Describe what reconstruction is :

Increasing share volume/value

Decreasing share value/volume

Increasing/decreasing share volume/value

Increasing/decreasing share value/volume

92. When constructing a password you should :

Use your family member name, sports name, pet name and add a number on the end

Use phrases or misspelled words with embedded numbers and special characters

Use sequenced letters and numbers from your keyboard

All of the above

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

6

4

8

5

94. Which one of the following statements is incorrect on a Bear Market ?

A period of positive returns in the broader market of between 6-10 percent

A period in which investment prices rises and optimism

It must occur within six months of the year

It occurs when unemployment is low and inflation is slowing down

None of the above

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

4

2

3

1

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

Bell Ringing only

Bell Ringing and Facts Behind the Listing

Bell Ringing, Facts Behind the Listing, Facts Behind the Figures, Conferences

Trade Fair, Bell Ringing, Facts Behind the Figures, Facts Behind the Listing, Conferences

97. 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

III only

I and III

II and III

All of the above