Indian Stock Market - Quiz Questions with Answers

1. Where is the Headquarters of the Bombay Stock Exchange?
Answer: Mumbai

2. How many Indices does the Bombay Stock Exchange has?
Answer: There are 5 indices of the BSE.

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: IPO stands for "Initial public offering". It is a public offering in which shares of a company are sold to institutional investors and retail investors.

8. What is the full form of LTP in context to the stock market?
Answer: Last Traded Price

9. Who is the CEO of Bombay Stock Exchange (BSE)?
Answer: Ashish Kumar Chauhan

10. What is the full form of NSE?
Answer: National Stock Exchange of India

11. Who is the Chairman of the National Stock Exchange (NSE)?
Answer: Girish Chandra Chaturvedi

12. What are the Main Indices of the National Stock Exchange?
Answer:
1) NIFTY 50
2) NIFTY NEXT 50
3) NIFTY 500

13. Which country does NASDAQ Stock Exchange belong to?
Answer: United States of America

14. What is the full form of 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 the National Stock Exchange of India Established?
Answer: 1992

18. What is the Full Form of SENSEX?
Answer: Stock Exchange Sensitive Index

19. What is the 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

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 the 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. What is Mutual Fund?
Answer: It is a managed Investment Fund, A Pool of Money collected 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 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. Which are the Top Discount Stockbrokers in India?
Answer:
1) Zerodha
2) Upstox
3) 5paisa
4) Angel Broking
5) Alice Blue
6) IIFL Securities
7) ICICI Direct
8) Edelweiss

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

59. What is a Trading Account?
Answer: It is an 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 does it mean to Square Off a trade?
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. It is also used in the context of options trading to close an open position before the option expiry.

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

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 terms 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 is referred to as an institutional investor.

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: Placing an order to Buy/Sell shares from the open market at a given point of time is referred to as the market price order.

75. Which organization is the regulatory authority of the Shock 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 move from your Demat account in India?
Answer: T+2 Days

81. What do 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) Reliance Industries Limited
2) Tata Consultancy Services
3) HDFC Bank
4) Hindustan Unilever
5) HDFC
6) ICICI Bank
7) ITC
8) Kotak Mahindra Bank
9) Infosys
10) State Bank of India

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 analyses:
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

101. How many parts is the 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 generally referred to as the Warren Buffett of India?
Answer: Rakesh Jhunjhunwala

105. Who are the 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