GK On Indian Stock Market: 100+ Questions And Answers

GK On Indian Stock Market: Questions And Answers

Last Updated: 19 February 2021

Do you know which Stock Exchange was first established in India?

Well, it was the Bombay Stock Exchange that was first established in 1875. Bombay Stock Exchange commonly known as BSE is also the oldest stock exchange in Asia.

You might have heard of the terms like SENSEX, Indices, Stocks, Shares, Market Prize, LTP, NSE, etc, and had been wondering what really are those terms.

If you want to learn General Knowledge about the Indian Stock Market, how it works, what do those terms mean? You came to the right place.

Today You will learn GK On Indian Stock Market, which is presented as Questions And Answers format. Read all the GK On Indian Stock Market and take your one step ahead on Investing your money.

Operating Stock Exchanges In India


No.Stock ExchangeShort
1Bombay Stock ExchangeBSE
2National Stock Exchange of IndiaNSE
3Calcutta Stock ExchangeCSE
4India International ExchangeIndia INX
5Indian Commodity ExchangeICEX
6Metropolitan Stock Exchange of India LtdMSE
7Multi Commodity Exchange of India LtdMCX
8National Commodity & Derivatives Exchange LtdNCDEX
9NSE International ExchangeNSE IFSC

GK On Indian Stock Market


1. Where is the Headquarter of Bombay Stock Exchange?

Answer: Mumbai

2. How many Indices does Bombay Stock Exchange has?

Answer: 5 (Five)

3. What are the Indices of Bombay Stock Exchange?

Answer:
1) BSE SENSEX
2) S&P BSE SmallCap
3) S&P BSE MidCap
4) S&P BSE LargeCap
5) BSE 500

4. What does S&P mean in the S&P 500?

Answer: Standard & Poor’s

5. How many Indian Companies are included in the SENSEX?

Answer: 30 Companies

6. How many Indian Companies are included in the NIFTY 50?

Answer: 50 Companies

7. What is an IPO?

Answer: Initial public offering
Explanation: It is a Public offering in which shares of a company are sold to institutional investors and retail investors.

8. Full Form of LTP?

Answer: Last Traded Price

9. CEO of Bombay Stock Exchange?

Answer: Ashish Kumar Chauhan

10. What is NSE?

Answer: The National Stock Exchange of India

11. CEO of National Stock Exchange?

Answer: Vikram Limaye

12. What are the Indices of National Stock Exchange?

Answer:
1) NIFTY 50
2) NIFTY NEXT 50
3) NIFTY 500

13. Which country does NASDAQ Stock Exchange belong to?

Answer: America

14. What is SEBI?

Answer: Securities and Exchange Board of India

15. Nikkei is a stock market index for which exchange?

Answer: Tokyo Stock Exchange

16. What are “Blue Chip” Companies?

Answer: A company whose share always provides profit

17. When was National Stock Exchange of India Established?

Answer: 1992

18. Full Form of SENSEX?

Answer: Stock Exchange Sensitive Index

19. Full Form of NIFTY?

Answer: National Stock Exchange Fifty

20. Where is the Bombay Stock Exchange located?

Answer: Dalal Street (Mumbai)

21. When was SEBI founded?

Answer: 12 April 1992

22. Who does the registration of Brokers and Sub-Brokers?

Answer: SEBI

23. World’s First Electronic Stock Exchange?

Answer: NASDAQ (February 8, 1971)

24. Which Stock Exchange Nickname is Big Board?

Answer: New York Stock Exchange (NYSE)

25. When was the SEBI Act launched?

Answer: 1992

Related: Quiz On Constitution Of India (Important Objective Questions)

26. What is a Dividend?

Answer: Distribution of profits by a company or corporation to its shareholders.

27.  First Stock Exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act?

Answer: Bombay Stock Exchange (August 31, 1957)

28.  First International Exchange of India?

Answer: India International Exchange (India INX)

29. What is F&O?

Answer: Futures and Options

30. What is Commodity in Stock Market?

Answer: Commodity is a Raw Material or Primary Agricultural product or anything that can be bought and sold in stock exchange.

31. Asia’s Oldest Stock Exchange?

Answer: Bombay Stock Exchange

32. How many Companies are listed on BSE?

Answer: More than 5000

33. How many Companies are listed on NSE?

Answer: More than 1600

34. First Dematerialized Electronic Exchange in India?

Answer: National Stock Exchange of India Limited

35. Who manages Nifty 50?

Answer: NSE Indices Limited

36. What is Face Value?

Answer: Original cost of the stock on the certificate

37. What is Day Trading?

Answer: Someone who buys and sells shares over the Internet over a period of one day.

38. What is Long Term Investing?

Answer: Someone who buys and holds a share for more than one day and sells shares over the Internet after a certain period.

39. What is PE Ratio?

Answer: Price–Earnings Ratio is Company’s Share Price Vs Company’s Earnings Per Share.

40. What is Debt?

Answer: A Sum of money that is Owed or Due

41. What is Volatility in the Stock Market?

Answer: Rapid change of Share Price that is unpredictable

42. What is IRR?

Answer: Internal Rate of Return

43. What are the Major Industries and Sectors in the Indian Stock Market?

Answer:
1) Bank
2) Health Care
3) Construction
4) Education
5) FMCG
6) Agriculture
7) Telecommunication
8) IT
9) Pharmaceutical 
10) Mining, etc

44. What is CAGR?

Answer: Compound Annual Growth Rate

45. What is Technical Analysis?

Answer: It is the Analysis of a Company’s Financial by looking at the history of its share price. Analyst study’s the Market Data or Pattern to identify trends and make predictions.

46. What are Support and Resistance?

Answer: Share Price level at which it is thought that the price will tend to Stop and Reverse.

47. Full-Form of GST?

Answer: Goods and Services Tax

48. What is Candlestick Chart in Trading?

Answer: It is a chart used by traders to determine possible price movements by studying past patterns.

49. What is NPA?

Answer: Non Performing Assets

50. How many Departments does SEBI have?

Answer: 20 Departments
1) Commodity Derivatives Market Regulation Department (CDMRD)
2) Corporation Finance Department (CFD)
3) Department of Economic and Policy Analysis (DEPA)
4) Department of Debt and Hybrid Securities (DDHS)
5) Enforcement Department – 1 (EFD1)
6) Enforcement Department – 2 (EFD2)
7) Enquiries and Adjudication Department (EAD)
8) General Services Department (GSD)
9) Human Resources Department (HRDM)
10) Information Technology Department (ITD)
11) Integrated Surveillance Department (ISD)
12) Investigations Department (IVD)
13) Investment Management Department (IMD)
14) Legal Affairs Department (LAD)
15) Market Intermediaries Regulation and Supervision Department (MIRSD)
16) Market Regulation Department (MRD)
17) Office of International Affairs (OIA)
18) Office of Investor Assistance and Education (OIAE)
19) Office of the Chairman (OCH)
20) Regional Offices (ROs)


Related: List Of Top Richest Person In The World 2021


Popular Stock Exchange Name With Country


No.Stock ExchangeShortCountry
1New York Stock ExchangeNYSEUnited States
2NasdaqNASDAQUnited States
3Japan Exchange GroupJPXJapan
4Shanghai Stock ExchangeSSEChina
5Hong Kong Stock ExchangeSEHKHong Kong
6Shenzhen Stock ExchangeSZSEChina
7TMX GroupTSXCanada
8Australian Securities ExchangeASXAustralia
9Korea ExchangeKRXSouth Korea
10Singapore ExchangeSGXSingapore

51. What is Mutual Fund?
Answer: It is a managed Investment Fund, A Pool of Money collection from many investors to invest in securities like stocks, bonds, and other assets.

52. What is an Asset?
Answer: Any resource or property owned by a person or company

53. What is a Liability?
Answer:  It is a sum of money legally responsible for something or a sum of money that you owe to someone.

54. What is the difference between Stock vs Share?
Answer:
Stock: Ownership Certificates of Any Company
Share: Ownership Certificates of a Particular Company

55. Can you buy Stocks or Shares directly from the Stock Exchange?
Answer: No, One can only buy shares through Stockbrokers

56. What is a Discount Stockbroker?
Answer: A Broker who provides trading services at a reduced commission rate.

57. Top Discount Stockbroker’s in India?
Answer:
1) Zerodha
2) Upstox
3) 5paisa
4) SAMCO
5) Master Trust

58. What is a Demat Account?
Answer: Account to hold Shares in Electronic Form

59. What is a Trading Account?
Answer: Account opened at a Stockbroker for trading stocks

60. Normal Trading Time in India?
Answer: 9:15 AM to 03:30 PM

61. What is the Base year of NIFTY?
Answer: 3 November 1995

62. What is the Base year of Sensex?
Answer: 1978-79

63. What is Equity?
Answer: Equity is the ownership of assets that may have debts or other liabilities attached to them.

64. What is Square Off?
Answer:  Squaring off is a trading style used by traders in day trading, in which a trader buys or sells a particular quantity of stocks. Later on, that day reverses the transaction in the hope of earning a profit.

65. What is EBITDA?
Answer: Earnings Before Interest, Taxes, Depreciation, and Amortization


Related: List Of Top 50 FMCG Companies In India With Their Brands


66. What is Revenue?
Answer: An income that a business has from its normal business activities

67. Where is the headquarter of SEBI?
Answer: Mumbai

68. What is Market Capitalization?
Answer: Worth of a company in term of its shares

69. What is a Stock Split?
Answer: Stock Split increases the number of shares in a company but the market capital remains intact.

70. What are ETFs?
Answer: Exchange-Traded Funds

71. Who is a Retail Investor?
Answer: An individual investor who buys and sells securities, mutual funds, and ETFs through online brokerage firms.

72. Who is an Institutional Investor?
Answer: A company or organization that invests money on behalf of other people

73. What is the name of the order that you place to Buy/Sell a share at a specific price?
Answer: Limit Order

74. What is a Market Price Order?
Answer:
Buying/Selling Price of a share on the open market at a given point of time.

75. Which organization Controls Share Market in India?
Answer: SEBI

76. What is FPO?
Answer: Follow-On Public Offering

77. What does Delivery mean in Stock Market?
Answer: Buying shares and holding them for more than one day

78. What are the Two Depositories in India?
Answer:
1) National Securities Depository Limited (NSDL)
2) Central Depository Services Limited (CDSL)

79. When does the share you Buy gets into your Demat account in India?
Answer: T+2 Days (Where T is the trading day)

80. When does the share you Sell moves from your Demat account in India?
Answer: T+2 Days


Related: 400+ Taglines Of Indian Companies And Brands With Slogans


81. What does Bonus Shares in the ratio of 5:1 mean?
Answer: One bonus share for every five shares held

82. Who is the founder of Zerodha?
Answer: Nithin Kamath

83. List of Top Largest Company in India by Market Cap?
Answer:
1) Indian Oil Corporation
2) Reliance Industries Limited
3) Oil and Natural Gas Corporation
4) State Bank of India
5) Tata Motors
6) Bharat Petroleum
7) Hindustan Petroleum
8) Tata Steel
9) Tata Consultancy Services
10) Larsen & Toubro
Read More List Here.

84. What is a Recession?
Answer: It is a period of temporary economic fall. During this period trade and industrial activity are reduced and identified by a fall in GDP in two successive quarters.

85. What is FD?
Answer: A Fixed Deposit (FD) is a type of deposit, provided by banks or NBFCs that gives you a fixed rate of interest after maturity. The rate of interest is higher than a regular savings account.

86. What is NBFC?
Answer: Non-Banking Financial Company

87. What is EPS?
Answer: Earning Per Share

88. What are Penny Stocks?
Answer: A share whose value is less than one dollar (or say less than ₹100).

89. What is a Bull Market?
Answer: Condition of a Stock Market in which share prices are rising or expected to rise.

90. What is a Bear Market?
Answer: Condition of a Stock Market in which share prices are falling or expected to fall.

91. When did MCX begin its operations in India?
Answer: November 2003

92. When was Bangalore Stock Exchange closed?
Answer:  2014

93. Which stock exchange was closed in 2018?
Answer: Ahmedabad Stock Exchange

94. What is a Circuit Breaker in Stock Market?
Answer: Regulatory measures taken by the Stock Exchange to temporarily halt in trading. This is done to prevent stock market crashes from occurring.

95. What are Derivatives?
Answer: A contract that derives its value from the performance of an underlying entity

96. What are the two types of Derivatives?
Answer: Futures and Options

97. What is Fundamental Analysis?
Answer: Analysing the financial statements of a company. Fundamental Analyst looks for 3 major analysis:
1) Company analysis
2) Industry analysis
3) Economy analysis

98. What is Technical Analysis?
Answer: Analysis of a company by patterns in market data (Say Share Price) to identify trends and make predictions. It helps in forecasting the future price of the share on the basis of historical movements of the share price.

99. What is SIP?
Answer: Systematic Investment Plan

100. Who is widely regarded as the most successful investor in the world?
Answer: Warren Buffett


Related: Top 100 Indian Brands And Companies That Sound Foreign


101. How many parts is Debt Market divided?
Answer: 3 Parts
1) Government securities Market
2) Money Market
3) Corporate Debt Market

102. What is a Stop Loss Order?
Answer: It is an order that is placed with a broker to buy or sell once the stock reaches a certain price. Stop Loss order is mainly used to limit an investor’s loss on a security position.

103. What is DJIA?
Answer: Dow Jones Industrial Average (Market Index)

104. Who is India’s, Warren Buffett?
Answer: Rakesh Jhunjhunwala

105. Top Investors in India?
Answer:
1) Radhakishan Damani
2) Raamdeo Agrawal
3) Porinju Veliyath
4) Dolly Khanna
5) Amitabh Bachchan
6) Ashish Kacholia
7) Vijay Kedia
8) Rakesh Jhunjhunwala
9) Anil Kumar Goel
10) Ashish Dhawan, etc

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