Basic Stock Market Quiz

1. One of the essential regulatory bodies overseeing the Indian stock market is the Securities and Exchange Board of India (SEBI). SEBI plays a crucial role in ensuring transparency and protecting investor interests. Which of the following responsibilities does SEBI NOT hold?

2. Initial Public Offerings (IPOs) are a significant event in the Indian stock market, representing a company's transition from private to public ownership. Investors keenly anticipate IPOs, but they come with both opportunities and risks. What is a primary risk associated with investing in IPOs?

3. The Indian stock market consists of two main segments: the primary market and the secondary market. In the primary market, companies issue new securities to raise capital for expansion, debt repayment, or other corporate purposes. On the other hand, the secondary market involves the trading of existing securities among investors. Which of the following statements best describes the role of the primary market?

4. Understanding market indices is essential for investors to gauge the overall market performance. The National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) are the two primary stock exchanges in India. The NSE's benchmark index is the Nifty 50, representing the top 50 companies listed on the exchange. Similarly, the BSE's benchmark index is the Sensex, which tracks the performance of 30 prominent stocks. What do the Nifty 50 and Sensex represent?

5. Investors can choose between two primary types of analysis to make informed decisions: fundamental analysis and technical analysis. Fundamental analysis involves evaluating a company's financial health, including factors like earnings, revenue, and debt. On the other hand, technical analysis relies on studying price patterns and market trends to predict future price movements. Which of the following is a key focus of fundamental analysis?