Ats Batch 2 2014

100 Questions | Attempts: 86
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  • 1/100 Questions

    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
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Ats Batch 2 2014 - Quiz
About This Quiz

AUTOMATED TRADING SYSTEM EXAM QUESTION

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  • 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

    Correct Answer
    A. Continuous update, monitoring, assessment and reports on (i) and (ii) above to management and regulatory authorities
  • 3. 

    CSR stands for?

    • Corporate Social Responsibility

    • Corporation of Society Responsibility

    • Corporate Social Relationship

    • Composition of Social Relations

    Correct Answer
    A. Corporate Social Responsibility
  • 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

    Correct Answer
    A. 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

    Correct Answer
    A. The capital market
  • 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

    Correct Answer
    A. A legal document on a deceased estate who left behind a Will
  • 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

    Correct Answer
    A. All of the above
  • 8. 

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

    • Equities

    • Bonds

    • Futures

    • ETFs

    Correct Answer
    A. Futures
  • 9. 

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

    • Making announcements

    • Making arrests

    • Making rules

    • Making products

    • Making money

    Correct Answer
    A. Making rules
  • 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%

    Correct Answer
    A. The maximum downward price movement in one day for a security is 9.75%
  • 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

    Correct Answer
    A. 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

    Correct Answer
    A. Fast ranging
  • 13. 

    Your own orders can be withdrawn from All except:

    • Order book by order

    • Order book

    • Market View

    • My Open Orders

    Correct Answer
    A. Market View
  • 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

    Correct Answer
    A. Best Execution
  • 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

    Correct Answer
    A. Primary 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.

    Correct Answer
    A. Rules and Adjudication 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

    Correct Answer
    A. The member himself / itself is guilty of a breach of the rules and regulations of the exchange
  • 18. 

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

    • Limit and Market Orders

    • Limit Orders

    • Market Orders            

    Correct Answer
    A. Limit Orders
  • 19. 

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

    • Reference Price

    • Open Quantity

    • Bid Depth

    • Firm Name

    Correct Answer
    A. Firm Name
  • 20. 

    Trading Account Positions can be seen via which table?

    • Trading and Loss Account Table

    • Trading Account Table

    • Depository Account Table            

    • Trade Events Table

    Correct Answer
    A. Trading Account 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%

    Correct Answer
    A. The maximum upward price movement in one day for a security is 10.25%
  • 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

    Correct Answer
    A. He/she will leave the floor without taking permission from the market controller
  • 23. 

    Professional Etiquette is presenting a ______ professional image.

    • Basic

    • Passive

    • Positive

    • Intermediate

    Correct Answer
    A. Positive
  • 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

    Correct Answer
    A. Allocate scarce resources from savers to investors
  • 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

    Correct Answer
    A. The personal and 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

    Correct Answer
    A. Nigerian Council of Registered Insurance Brokers
  • 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

    Correct Answer
    A. FOK
  • 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

    Correct Answer
    A. The Broker, 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

    Correct Answer
    A. Pre-Open Adjust, Continuous Trading, Pre-Close Adjust
  • 30. 

    The back office department is made up of :

    • Customer service & Compliance

    • Operations & Finance

    • Customer Service & Finance

    • Operation & Business Development unit

    Correct Answer
    A. Operations & Finance
  • 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  

    Correct Answer
    A. Capital Market Correspondents Association of Nigeria
  • 32. 

    How many pillars drive the NSE strategy?

    • 4

    • 1

    • 3

    • 5

    Correct Answer
    A. 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

    Correct Answer
    A. Equities
  • 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

    Correct Answer
    A. Preparing of annual reports for client companies
  • 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

    Correct Answer
    A. Brokers Dealer Engagement
  • 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

    Correct Answer
    A. 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

    Correct Answer
    A. True
  • 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

    Correct Answer
    A. Securities and Exchange Commission
  • 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

    Correct Answer
    A. Market Makers
  • 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

    Correct Answer
    A. Pre-Open, Pre-Open Adjust, 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

    • An order quantity must be filled as soon as it becomes available on the market by only one client , otherwise the order remains open on the market.

    Correct Answer
    A. An order quantity must be filled as soon as it becomes available on the market by only one client , otherwise the order remains open on the market.
  • 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

    Correct Answer
    A. Do not show interest and enthusiasm
  • 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

    Correct Answer
    A. Select File, Workspace, Open Preset, NSE Trader
  • 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

    Correct Answer
    A. Nominal transfer
  • 45. 

    The Index is useful for :

    • Performance benchmarking

    • Measuring economic performance

    • To forecast

    • All of the above

    • None of the Above

    Correct Answer
    A. All 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

    Correct Answer
    A. 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

    Correct Answer
    A. Pre-Arrival, Arrival, Business Relationship and Satisfaction
  • 48. 

    What is the standard period for rules exposure to stakeholders:

    •   7 days

    •    14 days

    •    21 days

    •    28 days

    •   42 days.

    Correct Answer
    A.    14 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

    Correct Answer
    A. Issuing house, Stockbroker, Reporting Accountant, Solicitor, Registrar

Quiz Review Timeline (Updated): Mar 21, 2022 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2022
    Quiz Edited by
    ProProfs Editorial Team
  • Jul 08, 2014
    Quiz Created by
    Mcnse
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