Business And Commerce - Study Mode

[#421] New issue market is an integral part of the ___________.
Correct Answer

(B) capital market

Explanation

Solution: New issue market is an integral part of the capital market. The most important type of capital market is the primary market. It is what we call the new issue market. It exclusively deals with the issue of new securities, i.e. securities that are issued to investors for the very first time.

[#422] Contango charge is paid by __________.
Correct Answer

(A) bull speculator to bear speculator

Explanation

Solution: Contango charge is paid by bull speculator to bear speculator. When the spot price is higher than the futures price, the market is said to be in backwardation. It is often called 'normal backwardation' as the futures buyer is rewarded for risk he takes off the producer. If the spot price is lower than the futures price, the market is in contango".

[#423] In India there are __________ recognized stock exchanges at present.
Correct Answer

(D) twenty three

Explanation

Solution: As of now there are 23 SEBI approved Stock Exchanges in the country. Stock market is managed and regulated by the Securities and Exchange Board of India (SEBI). Indian stock exchanges may refer to the 18 official stock exchanges located in India, the largest of which are the NSE and BSE.

[#424] A firm which outsources its works requires ___________.
Correct Answer

(B) less employees

Explanation

Solution: A firm which outsources its works requires less employees. Outsourcing is the business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff.

[#425] When a right to purchase securities is acquired it is know as ________.
Correct Answer

(A) Call option

Explanation

Solution: A call option is the right (not obligation) to buy stock in the future at a fixed price and a put option is the right (not obligation) to sell