CBSE Class 12 Business Studies Viva Questions Stock Exchange

Q1 What do you mean by the term Stock Exchange?

Ans. It is an institution which provides a platform for buying and selling of existing securities.

Q2 State any two functions performed by Stock Exchange.

Ans. (i) Providing liquidity and marketability to existing securities.

(ii)Facilitates Price discovery

Q3 Who is a Bears?

Ans. A speculator who expects fall in the price of shares.

Q4 Who is a Bull?

Ans. A speculator who expects rise in the price of shares.

Q5 Give the full form of SEBI.

Ans. Securities and Exchange Board of India.

Q6 Name the index of Bombay Stock Exchange.

Ans. SENSEX

Q7 What do you mean by SENSEX.

Ans. SENSEX is the benchmark index of BSE. It comprises of the most actively traded stocks in the market.

Q8 What do you mean by Odd Lot Trading?

Ans. Trading in the multiples of 100 stocks or less.

Q9 Briefly describe the trading procedure on stock exchange.

Ans. Briefly describe all the steps related to procedure on stock exchange.

Q10 What is Demat Account?

Ans. It is an account which a person must open with depository participant to trade in securities listed on stock exchange.

Q11 What do you mean by Re-materialization?

Ans. Conversion of securities in electronic form to physical form.

Q12 State any one objective of setting SEBI.

Ans. To develop and implement code of conduct relating to stock exchange.

Q13 What is meant by ‘Bridge Financing’?

Ans. Raising funds through Commercial papers to meet the floatation costs is called Bridge Financing.

Q14 Who is a Stag?

Ans. A speculator who applies for new securities in expectation that prices will rise by the time of allotment and he can sell them at premium.

Q15 What are Blue chip stocks?

Ans. Stocks of leading and nationally known companies that offer a record of continuous dividend payments and other strong investment qualities.

Q16 What do you mean by Short Selling?

Ans. The selling of a security that the seller does not own (naked or uncovered short) or has borrowed (covered short). Short selling is a trading strategy. Short sellers assume the risk that they will be able to buy the stock at a lower price, cover the outstanding short, and realize a profit from the difference.

Q17 What do you mean by Chickens Stock Market?

Ans. A Chicken Market is fear. Chickens have no specific plan and are driven by fear of losing their money. Fear overrides common sense and any plan is quickly changed if a loss occurs.

Q18 Name any one document required for opening Demat Account.

Ans. PAN Card copy.

Q19 Briefly describe your project.

Ans. Subjective answer explaining the sequencing of the project.

Q20 What is the settlement cycle in NSE?

Ans. T+2