JAMB Commerce questions

307 questions with answers and explanations. Tap an option to check yourself.

1. Question 261· The stock exchange· JAMB

   A bull on the stock exchange

   • Asells shares expecting a fall
   • Bbuys shares expecting prices to rise
   • Cis a broker only
   • Dissues shares

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   Explanation and discussion

2. Question 262· The stock exchange· JAMB

   The Securities and Exchange Commission (SEC) in Nigeria

   • Aregulates the capital market
   • Bsells shares
   • Cruns banks
   • Dsets tax rates

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   Explanation and discussion

3. Question 263· The stock exchange· JAMB

   A rights issue means

   • Aselling shares to the general public
   • Boffering new shares to existing shareholders
   • Cbuying back shares
   • Dpaying dividends

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   Explanation and discussion

4. Question 264· The stock exchange· JAMB

   The price at which shares are first offered to the public is the

   • Amarket capitalisation
   • Bdividend
   • Cyield
   • Dissue price

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   Explanation and discussion

5. Question 265· The stock exchange· JAMB

   One function of the Nigerian Exchange (stock exchange) is to

   • Aprint the national currency
   • Bcollect taxes from companies
   • Cprovide a market for buying and selling existing securities
   • Dinsure company assets

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   Explanation and discussion

6. Question 266· The stock exchange· JAMB

   A share's dividend yield is ₦5 on a market price of ₦100. The yield is

   • A5%
   • B20%
   • C95%
   • D0.05%

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   Explanation and discussion

7. Question 267· The stock exchange· JAMB

   A speculator who applies for newly issued shares hoping to sell them at a premium as soon as trading begins is a

   • Abull
   • Bstag
   • Cbroker
   • Dbear

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8. Question 268· The stock exchange· JAMB

   The body that regulates the capital market in Nigeria is the

   • AFederal Inland Revenue Service
   • BCentral Bank of Nigeria
   • CCorporate Affairs Commission
   • DSecurities and Exchange Commission

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   Explanation and discussion

9. Question 269· The stock exchange· JAMB

   A speculator who buys shares expecting their price to rise is a

   • Abear
   • Bstag
   • Cbull
   • Dbroker

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   Explanation and discussion

10. Question 270· The stock exchange· JAMB

    A 'lame duck' on the stock exchange is

    • Aa broker
    • Ba successful investor
    • Ca speculator who cannot meet his obligations
    • Da newly listed company

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    Explanation and discussion

11. Question 271· The stock exchange· JAMB

    A stockbroker

    • Abuys and sells securities on behalf of clients
    • Bissues currency
    • Cprints share certificates for government
    • Druns insurance

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    Explanation and discussion

12. Question 272· The stock exchange· JAMB

    The charge paid by a bull to carry over a transaction to the next settlement period is

    • Abackwardation
    • Barbitrage
    • Cbrokerage
    • Dcontango

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13. Question 273· The stock exchange· JAMB

    A bonus issue is

    • Aa debenture
    • Bshares sold at a discount
    • Ca cash dividend
    • Dfree shares given to existing shareholders from reserves

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    Explanation and discussion

14. Question 274· The stock exchange· JAMB

    Government bonds are often called gilt-edged securities because they

    • Acarry very little risk of default
    • Bpay no interest
    • Care traded only abroad
    • Dcan be bought by banks alone

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15. Question 275· The stock exchange· JAMB

    A dealing member of the stock exchange who buys and sells securities on behalf of clients is a

    • Abear
    • Bjobber
    • Cstag
    • Dstockbroker

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    Explanation and discussion

16. Question 276· The stock exchange· JAMB

    A bear on the stock exchange is a speculator who

    • Abuys new issues
    • Bsells shares expecting their price to fall
    • Cbuys expecting a rise
    • Dholds shares for many years

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17. Question 277· The stock exchange· JAMB

    Bonds issued by government to borrow money are called

    • Aordinary shares
    • Bgovernment securities (gilt-edged)
    • Cpreference shares
    • Ddebentures of companies

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18. Question 278· Transport· JAMB

    A ship that sails on fixed routes according to a published timetable is a

    • Aliner
    • Btramp
    • Ccoaster
    • Dbarge

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19. Question 279· Transport· JAMB

    An air waybill is

    • Aa shipping document
    • Ba document issued by an airline for goods sent by air
    • Ca postage stamp
    • Da rail ticket

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20. Question 280· Transport· JAMB

    The main advantage of rail over road transport is that rail

    • Agives door-to-door service
    • Bcarries heavy and bulky goods cheaply over long distances
    • Cis more flexible
    • Dis faster over short distances

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    Explanation and discussion