Gauhati University Question Papers
Investing in stock markets’ 2020
Paper: COM-GE-1046 (B)
1. Answer the following as directed: 1×10=10
(a) F.P.O. stands for
1) Follow on Premium Offer.
2) First Premium Offer.
3) First Public Offer.
4) Follow on Public Offer. (Choose the correct alternative)
(b) Which of the following exchanges provide the facility of commodity future trades?
4) All of the above. (Choose the correct alternative)
(c) State whether the following statement are ‘true’ or ‘false’. Share prices on Stock Exchanges are determined by SEBI. False
(d) State whether the following statement is ‘true’ or ‘false’: Investment in equity is safer than bank fixed deposit. False
(e) Liquidity ratio of a company basically consists of
1) Current ratio.
2) Acid test ratio.
3) Both (i) and (ii).
4) None of the above. (Choose the correct alternative)
(f) On which date SEBI introduced (New regulation) compulsory trading of shares of all the companies listed in the stock exchange in ‘DEMAT’ form?
1) 1st January, 2016.
2) 1st April, 2017.
3) 1st January, 2018.
4) 1st April, 2019. (Choose the correct alternative)
(g) Securities and Exchange Board of India (SEBI) was constituted in the year
4) 2000. (Choose the correct alternative)
(h) State whether the following statement is ‘True’ or ‘False’:
Commodity derivative are used only for hedging. True
(i) Which one of the following is the first public sector mutual fund in India?
1) SBI Mutual Fund.
2) Can Bank Mutual Fund.
3) UTI Mutual Fund.
4) HDFC Mutual Fund. (Choose the correct alternative)
(j) NSE was set up in the year
4) 1995. (Choose the correct alternative)
2. Answer the following questions in about 50 words each: 2×5=10
a) Mention two characteristics of investment.
b) What is Earning Per Share (EPS)?
c) What is meant by Money Market Mutual Fund?
d) Give the definition of derivative according to Securities Contract (Regulation) Act (SCRA) 1956.
e) What do you mean by company analysis?
3. Answer any four questions of the following in about 150 words each: 5×4=20
(a) Discuss the functions of Stock Exchange.
(b) Explain different types of financial futures.
(c) Write any five features of equity share.
Write a note on comparative analysis of companies.
(d) Give any five distinctions between primary market and secondary market.
(e) Describe the importance of NAV for the investor.
(f) Write a note on DMAT Account.
4. Answer the following questions in about 600 words each: 10×4=40
(a) Discuss in detail the features of capital market. 10
Give the meaning of bond and explain its advantages and disadvantages. 2+4+4=10
(b) Discuss different types of mutual funds based on structure. 10
“Mutual Funds provide stability to share prices, safety to investors and resources to prospective entrepreneurs.” Analyse. 10
(c) What is online stock trading? Elaborate the advantages and disadvantages of online stock trading. 2+(4+4)=10
Mention the common steps to be followed for investment in mutual fund online. 10
(d) What is meant by options? Also point out the distinction between option and future contract. 2+8=10
1) Why is forward contracting useful? 5
2) Write a note on Regulatory Framework of Indian Securities Market. 5