Unit ko samjho · NISM Series XXI-B
Introduction to Securities Markets and Participants
3 questions is unit mein
Sawaal aur jawaab English mein hain, kyunki NISM ka exam paper bhi English mein hota hai.
Is unit mein kya hai
Zaroori ideas
Practice bank se · 1
Which transaction raises fresh equity capital for a company in the primary market?
Issuing new shares raises fresh equity capital because the company receives the subscription money. A trade in existing shares normally pays the selling investor instead. Remember: Distinguish fresh issuance from a transfer of existing ownership.
Hint Follow the money and identify who receives it. Common mistake: Assuming every purchase of company shares finances that company.
XXI-B-005Practice bank se · 2
Which institution maintains securities in electronic form within the depository system?
A depository maintains securities in electronic form, with investors accessing its services through depository participants. Trading and rating are separate activities. Remember: The depository system supports electronic ownership records.
Hint Distinguish holding securities from trading them or assessing an issuer. Common mistake: Confusing the trading venue with the institution maintaining electronic holdings.
XXI-B-006Practice bank se · 3
Shares trade at ₹200 before a one-for-four rights issue at ₹100. What is the theoretical ex-rights price, ignoring other changes?
The theoretical ex-rights price is ₹180 because five shares share the combined value. Old-share value = 4 × ₹200 = ₹800. Add the subscription of ₹100 to obtain ₹900. Divide ₹900 by 5 shares to obtain ₹180. Remember: A rights adjustment uses the number of old and newly issued shares.
Hint Compare the combined value with the total shares after subscription. Common mistake: Averaging the old price and subscription price without their share weights.
XXI-B-007