Capital Market in India

36. The ‘Open Offer’ is a mechanism for:

a) Acquiring majority stake in a company

b) Selling shares to the public

c) Dividing company profits among shareholders

d) Redeeming bonds before maturity

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37. The process of allotting shares in an IPO is known as:

a) Subscription

b) Listing

c) Underwriting

d) Demat

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38. In the derivatives market, a ‘futures contract’ represents an agreement to:

a) Buy or sell an underlying asset at a future date

b) Borrow or lend money at a fixed interest rate

c) Convert one currency into another at a specified exchange rate

d) Trade commodities such as gold or oil

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39. The ‘Stop-Loss Order’ is a mechanism used by investors to:

a) Limit potential losses by selling a security when it reaches a certain price

b) Buy more shares at a specific price

c) Place a bid at a fixed price in an IPO

d) Exercise the right to buy or sell an option

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40. Who can issue ‘commercial papers’ in the Indian capital market?

a) Companies

b) Banks

c) Government entities

d) Individuals

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