JAMB and WAEC Commerce questions: The stock exchange

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

1. Question 1· The stock exchange· WAEC

   A stock exchange is a market for

   • Abuying foodstuffs
   • Bbuying and selling securities
   • Cstoring goods
   • Dinsuring property

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   Explanation and discussion

2. Question 2· 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

3. Question 3· 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

4. Question 4· The stock exchange· WAEC

   A stag is a speculator who

   • Aacts as a broker
   • Bsells shares expecting a fall
   • Cbuys new shares hoping to sell them quickly at a profit
   • Dholds shares for many years

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5. Question 5· 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

6. Question 6· 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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7. Question 7· The stock exchange· WAEC

   The Nigerian Exchange Group is located in

   • APort Harcourt only
   • BKano
   • CAbuja only
   • DLagos

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   Explanation and discussion

8. Question 8· The stock exchange· WAEC

   A speculator who sells shares expecting their prices to fall is a

   • Abull
   • Bbear
   • Cstag
   • Djobber

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9. Question 9· The stock exchange· WAEC

   The Nigerian Exchange Limited (formerly the Nigerian Stock Exchange) is located in

   • AKano
   • BAbuja
   • CLagos
   • DPort Harcourt

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10. Question 10· The stock exchange· WAEC

    A stockbroker is

    • Aa central bank official
    • Ba speculator
    • Ca company director
    • Dan agent who buys and sells securities for clients

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11. Question 11· The stock exchange· WAEC

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

    • Astag
    • Bbear
    • Cbull
    • Dbroker

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    Explanation and discussion

12. Question 12· 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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13. Question 13· 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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14. Question 14· 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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15. Question 15· The stock exchange· WAEC

    Shares bought on the stock exchange are

    • Asecond-hand securities
    • Bnew bank notes
    • Cland titles
    • Dimport licences

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16. Question 16· The stock exchange· WAEC

    A speculator who buys new shares hoping to sell them quickly at a profit is a

    • Abull
    • Bbear
    • Cstag
    • Dlame duck

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17. Question 17· 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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18. Question 18· The stock exchange· JAMB

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

    • Abear
    • Bstag
    • Cbull
    • Dbroker

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19. Question 19· The stock exchange· WAEC

    Before a company can sell its shares on the Nigerian Exchange, it must be

    • Alisted (quoted) on the exchange
    • Ba sole proprietorship
    • Ca partnership
    • Downed by government

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20. Question 20· The stock exchange· WAEC

    Dividends are paid to

    • Acreditors
    • Bdebenture holders
    • Cshareholders
    • Ddirectors only

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    Explanation and discussion