NISM Series XV · Unit 2 of 15 · about 2% of the paper
Introduction to the securities market: NISM Series XV notes and practice questions
A rapid overview of the market that analysts operate in.
What to know in Unit 2
- Primary and secondary markets, participants and regulators.
Key terms, examples and exam traps
Securities market regulators
SEBI regulates the securities market, RBI the money market and banks, and exchanges oversee their members.
Example. A research report on listed shares is subject to the capital-market regulator.
Exam trap. This statement is false: The RBI regulates research analysts.
Market segments
The securities market has equity, debt, derivatives and commodity segments, each with its own instruments and participants.
Example. An analyst may cover shares, bonds and futures contracts.
Exam trap. This statement is false: Securities markets have only an equity segment.
Listing and disclosure
Listed companies must make continuous disclosures under the SEBI listing regulations, which are the primary source of information for analysts.
Example. A company files its quarterly results and announces material events on the exchange.
Exam trap. This statement is false: Listed companies need not disclose results to the public.
6 practice questions
Read each question and choose your answer before opening the free mock, which shows the correct answer and the reason.
Q1. Which term is described here? SEBI regulates the securities market, RBI the money market and banks, and exchanges oversee their members.
- Technical analysis
- Interest coverage ratio
- Securities market regulators
- Free cash flow to firm
Q2. Which term is described here? Listed companies must make continuous disclosures under the SEBI listing regulations, which are the primary source of information for analysts.
- Bonus issue
- Listing and disclosure
- Delisting
- Free cash flow to firm
Q3. Which statement about “Listing and disclosure” is correct?
- Listed companies need not disclose results to the public.
- Commodity prices depend only on company earnings.
- Listed companies must make continuous disclosures under the SEBI listing regulations, which are the primary source of information for analysts.
- Net profit margin is profit divided by equity.
Q4. Which term is described here? The securities market has equity, debt, derivatives and commodity segments, each with its own instruments and participants.
- Market segments
- Chinese wall
- Relative valuation
- SWOT analysis
Q5. A research report on listed shares is subject to the capital-market regulator. Which idea does this illustrate?
- Current ratio
- Securities market regulators
- Risk-free rate
- Fiscal deficit
Q6. An analyst may cover shares, bonds and futures contracts. Which idea does this illustrate?
- Stochastic oscillator
- Demerger
- Market segments
- Trend
Frequently asked questions
How much of NISM Series XV comes from Unit 2?
Unit 2 (Introduction to the securities market) usually carries about 2% of the questions. The whole exam has 100 questions and the pass mark is 60%.
What should I study in NISM Series XV Unit 2?
Primary and secondary markets, participants and regulators.
Are these NISM Series XV practice questions free?
Yes. Take the full free mocks to see the correct answer and the reason for every question.
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