RESEARCH & ANALYST
MOCK TEST DEMO
Explanation: The EBIT is Rs 400000 which is 40% of the business ie. sales. So Sales = Rs 10,00,000 (400000 / 40 x 100) Net Profit margin is 10% ie 10% of Rs 1000000 = Rs 100000
Explanation: Microeconomics focuses on individual households and firms. Macroeconomics deals with the economy as a whole. In other words, the focus of macroeconomics is on factors that influence aggregate supply and demand in an economy such as unemployment rates, gross domestic product (GDP), overall price levels, inflation, savings rate, investment rate etc.
Explanation: When an economy is going through tough times, less jobs are created and so the unemployment rate rises.
Explanation: Buy-side Analysts generate investment recommendations for their internal consumption viz. use by the fund managers within organization. They generally work for money managers like mutual funds, hedge funds,pension funds, or portfolio managers that purchase and sell securities for their own investment accounts or on behalf of their clients. Sell-side Analysts publish research reports on the securities of companies with specific recommendation to buy, hold, or sell. These analysts work for firms that provide investment banking, broking, advisory services for clients.
Explanation: In Options, the buyers have the RIGHT but no obligations. A CALL BUYER has the right to buy an asset at a predetermined price A PUT BUYER has the right to sell an asset at a predetermined price.
Explanation: Capital Employed can be calculated using two formulas. 1) Capital Employed = Total Assets – Current Liabilities 2) Capital Employed = Total Equity + Total Debt Here we use the second formula. Capital Employed = Total Equity + Total Debt = 700000 + 400000 = 1100000
Explanation: OTC markets are the markets where trades are directly negotiated between two or more counterparties. In this type of market, the securities are traded and settled over the counter among the counterparties directly. There is no Stock Exchange or Currency Exchange etc. involved.
Explanation: Share consolidation is the reverse of Stock split. A stock consolidation of 5:1 means consolidation of 5 existing share into 1 share. For example, if an investor holds 500 shares of a company with face value of Rs. 2 each, a stock consolidation in the ratio of 5:1 will reduce the number of shares held by him from 500 to 100 but the face value of each share will go up to Rs. 10.
Explanation: A Puttable bond gives the investor the right to seek redemption from the issuer before the original maturity date. This means the investor can sell back the bonds to the issuer before maturity. When interest rate rises, the investor would simply redeem the bonds and invest this money in higher coupon bonds.
Explanation: The main return from equity comes from capital appreciation ie. when the equity share prices rise.
Explanation: Job of a Research Analysts also involves close interaction with companies and clients.
Explanation: National Income may increase but faster increase in population may reduce the per capita income; which means standard of living in the country has gone down. So an increase in the Per Capita Income is the true indicator of improvement in Standard of Living and not increase in National Income. Per Capita Income = National Income / Total population
Explanation: The EBIT is Rs 200000 which is 40% of the business ie. sales. So Sales = Rs 500000 (200000 / 40 x 100) Net Profit margin is 25% ie 25% of Sales Rs 500000 25% of Rs 500000 = 125000 EPS = Net Profit / No. of Shares = 125000 / 10000 = 12.5
Explanation: P/E ratio = Market Price of Stock / EPS Therefore EPS = Market Price of Stock / PE ratio = 15 / 3 = 5 (Dividend need not be considered, the current market price is relevant)
Explanation: Investment Advisers, Asset Management Companies, Proxy Advisory Service providers and fund managers of Alternative Investment Funds shall not be required to be registered under the Securities and Exchange Board of India (Research Analyst) Regulations, 2014.
Explanation: Objective of all regulators is to create a fair and competitive market place with intermediaries ensuring high standard of services to the market participants and promote and ensure orderly growth of financial markets.
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