11. What is the role of a “market maker” in the capital market?
a) A financial institution that facilitates the trading of securities by providing liquidity
b) An individual who buys and sells stocks on behalf of clients
c) An investment advisor who provides guidance on investment strategies
d) A regulatory body that oversees the functioning of the capital market
12. What is a “volatility index”?
a) A measure of the price movement of a specific stock
b) A measure of the overall market sentiment
c) A measure of the expected price fluctuation in the market
d) A measure of the liquidity of a stock
13. What does the term “merger” refer to in the capital market?
a) The process of one company acquiring another company
b) The process of a company going public
c) The process of a company issuing bonds
d) The process of a company selling its assets
14. What does the term “short selling” mean in the capital market?
a) Selling a security with the hope of buying it back at a lower price in the future
b) Buying a security with the hope of selling it at a higher price in the future
c) Selling a security and immediately buying it back
d) Buying a security and immediately selling it
15. What is a “circuit breaker” in the capital market?
a) A mechanism to temporarily halt trading in case of significant price movements
b) A financial advisor who helps investors build their investment portfolios
c) A bond issued by banks to raise capital
d) A regulatory body that oversees the functioning of the stock exchange
