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101.

National Stock Exchange of India was recognised as Stock Exchange in the yearA. 1992B. 1993C. 1994D. 1995

Answer» Correct Answer - (a)
(a)1992 option is a correct answer.
Discussion
102.

The above figures are taken from the website of National Stock Exchange of India. They illustrate the movement of NSE stock indices as well as world stock indices on the date indicated. What factors affect the movement of stock indices? Elaborate on the nature of these factors.

Answer» The fall in the domestic market, as given in the above table, can significantly be attributed to the market sentiments of world market. We can see that the world indices and NSE indices are moving in the same direction. Some other factors which affect the movement of stock indices are:
(i)Demand and supply of vatious shares.
(ii) Earnings of the companies.
(iii) Growth prospects of the companies.
(iv) Speculation.
(v) State of economy,whether there is boom, depression , etc.
(vi) Political stability and decisions.
(vii) Financial institutions support.
(viii) Economic factors like, bank rate, inflation, etc.
Discussion
103.

What are the objectives NSE?

Answer» The main objective of NSE are :
(i) Establishing a nationwide trading facility for all types of securities.
(ii) Ensuring equal access to investors all over the country.
(iii) Providing a fair, efficient and transparent securities market.
(iv) Enabling shorter settlement cycles and book entry settlements.
(v) Meeting international standards and benchmarks.
Discussion
104.

The above figures are taken from the website of National Stock Exchange of India. They illustrate the movement of NSE stock indices as well as world stock indices on the date indicated. What conclusions can you draw from the various movements of NSE atock indices?

Answer» There is a downward swing in the stock market. While comparing the previous and current index of NSE, we can say that there is a bearish phase in the market as index is down for all the sectors.
Discussion
105.

The above figures are taken from the website of National Stock Exchange of India. They illustrate the movement of NSE stock indices as well as world stock indices on the date indicated. What do you mean by a stock index?How is it calculated?

Answer» Stock index refers to the index used to capture the movement of the stock market. It is a barometer which measures overall market trend through a set of stocks which are representatives of the market. An ideal index must represent changes in the prices of securities and also show the price movement of different classes of shares. A stock exchange selects a few most commonly traded shares. Then, the market price of these shares is found out by taking an average of highest price and the lowest price on a day. Then to find out the market capitalisation, the outstanding number of particular shares is multiplied by the price.
Most of the stock market uses the following three methods of calculating stock index:
(i) Price weighted index An index reflecting the sum of the prices of the sample share in a certain year/month/week/day with reference to base year.
(ii) Equal weighted index An index reflecting the simple arithmetic average of the price relatives of a sample of shares in a certain period with reference to base year.
(iii) Value weighted index It is an index reflecting the aggregate market capitalisation of the sample shares in certain period in relation to base year.
Discussion
106.

The National Stock Exchange of India was recognised as stock exchange in the yearA. 1992B. 1993C. 1994D. 1995

Answer» Correct Answer - A
The National Stock Exchange of India was recognised as stock exchange in the year 1992.
Discussion
107.

Clearing and settlement operations of NSE are carried out byA. NSDLB. NSCCLC. SBID. CDSL

Answer» Correct Answer - B
The clearing and settlement operations of NSE are carried out by NSCCL. NSCCL (National Securities Clearing Corporation Ltd.) was incorporated in august, 1995 and it commenced its clearing operations for NSE in April 1996.
Discussion
108.

NSE commenced future trading in the yearA. 1999B. 2000C. 2001D. 2002

Answer» Correct Answer - B
The National Stock Exchange of India Limited (NSE) commenced trading in derivatives with the launch of index futures on 12 June 2000. The futures and options segment of NSE has made a global mark.
Discussion