JAMB Commerce questions: The stock exchange

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

1. Question 1· 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

   Show answer

   Explanation and discussion

2. Question 2· The stock exchange· JAMB

   The Securities and Exchange Commission (SEC) in Nigeria

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

   Show answer

   Explanation and discussion

3. Question 3· 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

   Show answer

   Explanation and discussion

4. Question 4· The stock exchange· JAMB

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

   • Amarket capitalisation
   • Bdividend
   • Cyield
   • Dissue price

   Show answer

   Explanation and discussion

5. Question 5· 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

   Show answer

   Explanation and discussion

6. Question 6· 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%

   Show answer

   Explanation and discussion

7. Question 7· 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

   Show answer

   Explanation and discussion

8. Question 8· 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

   Show answer

   Explanation and discussion

9. Question 9· The stock exchange· JAMB

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

   • Abear
   • Bstag
   • Cbull
   • Dbroker

   Show answer

   Explanation and discussion

10. Question 10· 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

    Show answer

    Explanation and discussion

11. Question 11· The stock exchange· JAMB

    A stockbroker

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

    Show answer

    Explanation and discussion

12. Question 12· 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

    Show answer

    Explanation and discussion

13. Question 13· 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

    Show answer

    Explanation and discussion

14. Question 14· 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

    Show answer

    Explanation and discussion

15. Question 15· 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

    Show answer

    Explanation and discussion

16. Question 16· 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

    Show answer

    Explanation and discussion

17. Question 17· The stock exchange· JAMB

    Bonds issued by government to borrow money are called

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

    Show answer

    Explanation and discussion