Unit study guide · NISM Series II-B
Characteristics of Other Securities
5 questions in this unit
What this unit covers
- What does a share warrant generally give its holder?
- What is the core feature of a convertible debenture?
- Which instrument represents securities through certificates issued by a depositary arrangement?
- How does an ETF typically differ from a conventional non-exchange-traded index fund?
- A product primarily holds income-generating infrastructure assets. Which listed trust structure is most relevant?
Key ideas
From the practice bank · 1
What does a share warrant generally give its holder?
A share warrant gives a contractual right to obtain shares on specified terms.
Hint Recall whether a warrant is a right or existing ownership.
II-B-020From the practice bank · 2
What is the core feature of a convertible debenture?
A convertible debenture allows conversion of debt into equity according to its conditions.
Hint Look for the transition from debt to equity.
II-B-021From the practice bank · 3
Which instrument represents securities through certificates issued by a depositary arrangement?
A depository receipt represents underlying securities held under a custody arrangement.
Hint Think about holding local securities through a foreign-market instrument.
II-B-022From the practice bank · 4
How does an ETF typically differ from a conventional non-exchange-traded index fund?
An ETF may be bought or sold on an exchange while it is open.
Hint Consider how investors buy and sell fund units.
II-B-023From the practice bank · 5
A product primarily holds income-generating infrastructure assets. Which listed trust structure is most relevant?
An Infrastructure Investment Trust is designed to hold qualifying infrastructure assets.
Hint Distinguish infrastructure assets from property assets.
II-B-024