JAMB and WAEC Commerce questions: The stock exchange

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

1. Question 21· 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

2. Question 22· The stock exchange· WAEC

   A stock exchange benefits a company by

   • Aguaranteeing profit
   • Bmaking it easier to raise capital
   • Cremoving taxes
   • Dproviding goods

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   Explanation and discussion

3. Question 23· 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

4. Question 24· The stock exchange· WAEC

   The Securities and Exchange Commission in Nigeria

   • Aregulates the capital market
   • Bprints money
   • Ccollects customs duty
   • Dinsures bank deposits

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   Explanation and discussion

5. Question 25· 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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   Explanation and discussion

6. Question 26· The stock exchange· WAEC

   A stock exchange market in which share prices are generally rising is called a

   • Abull market
   • Bbear market
   • Cstag market
   • Dblack market

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   Explanation and discussion

7. Question 27· The stock exchange· WAEC

   A person who buys and sells shares on behalf of clients is a

   • Astockbroker
   • Bshareholder
   • Cdebenture holder
   • Dauditor

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   Explanation and discussion

8. Question 28· 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

9. Question 29· The stock exchange· WAEC

   A stag on the stock exchange is a speculator who

   • Aholds shares for life
   • Bsells expecting a fall
   • Cis a registered broker only
   • Dbuys new issues hoping to sell quickly at a profit

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   Explanation and discussion

10. Question 30· 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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    Explanation and discussion

11. Question 31· 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

12. Question 32· 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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    Explanation and discussion

13. Question 33· The stock exchange· WAEC

    An investor who sells shares expecting prices to fall is a

    • Abull
    • Bbear
    • Cstag
    • Dbroker

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    Explanation and discussion

14. Question 34· 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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    Explanation and discussion