1.

Read the passage carefully and answer the questionsMr. Rajan is an informed investor. He reads financial dailies to get updated and plan the portfolio accordingly. He follows the golden rules of investment and creates good Financial Corpus. He always buy defined securities. He trades through the registered market participant (Trading Member). He is comfortable with NEAT terminal and put bids on Market/Limit orders. The most important lesson he learnt from his experiences that always diversified his portfolio in a good manner which could be highly liquid. He not only trades in cash market but in derivatives also. He enters in derivatives by paying premium in option contract and initial margin in future contract. Future margin is releasable therefore he adjusts his MTM (Mark to Market) position accordingly. He believes that Overall stock market trading is a technique which requires knowledge, patient and comprehensive risk management.(i) Which of the following is not a rule to attain for smart investment? a. Invest early b. Invest regularly c. Invest for long term and not short term d. Invest for Short term and not Long term(ii) Do you know these following contracts are defined under SC(R) Act, 1956? a. Yes, Shares b. Yes, bonds c. Yes, debentures d. No, crypto currency(iii) Who is not the participant in the Securities Market? a. Issuers of securities b. Intermediaries c. Investors d. Lunatics(iv) Which trading terminal you would like to choose to trade in NSE? a. NEAT b. SBTS c. OECLOB d. TWS(v) Which bid price you would like to choose to hit the order? a. Highest Price b. Moderate Price c. Low Price d. Stop Loss Price(vi) ‘Don’t put all the egg in a one basket” if u believe this, then what to do to manage the risk? a. Buy IT sector b. Buy Pharma sector c. Buy Real Sector d. Diversification of Financial Assets(vii) If you trade in Derivative market, which Option Margin is not releasable to you? a. Initial Margin b. MTM Margin c. Option Premium d. Daily Margin

Answer»

(i) c. Invest for long term and not short term

(ii) d. No, crypto currency

(iii) d. Lunatics

(iv) a. NEAT

(v) a. Highest Price

(vi) d. Diversification of Financial Assets

(vii) c. Option Premium



Discussion

No Comment Found

Related InterviewSolutions