Ethics and Professional Standards (1 - 35)

1.
Corporate governance is not concerned with which of the following questions?
A.
How are risks managed?
B.
How do we formulate operational strategies for the business?
C.
Who has the power to make decisions for the company?
D.
In whose interest is the company governed?
2.
Which of the following would most likely be considered a negative factor in assessing the suitability of a board member? The board member:
A.
Has served for ten years.
B.
Has served on other boards.
C.
Owns stock in the company.
D.
Is a former CEO of another firm.
3.
The CIS Code of Ethics specifically addresses all of the following except:
A.
Reasonable care.
B.
Professional competence.
C.
Integrity.
D.
None of the above.
4.
The CIS Standards of Professional Conduct include all the following except:
A.
Responsibilities to the employer.
B.
Responsibilities to supervisors.
C.
Responsibilities to the government.
D.
Responsibilities to the Institute and profession.
6.
Which of the following is an exemption to the duty of confidentiality of information entrusted on a Stockbroker? If:
A.
He needs the information to defend an action instituted against the firm.
B.
Disclosure is required to assist the client.
C.
The client does not object in writing to the use of such information.
D.
He uses the information for genuine marketing purposes.
7.
Duties to the employer includes the following except?
A.
Duty not to take up an employment offer from a competing firm without approval.
B.
Compliance with the lawful policies of the employer.
C.
Obligation to act for the benefit of the employer.
D.
Loyalty.
5.
Responsibilities to the Institute and the profession requires the following except?
A.
Knowledge of all applicable laws, rules and regulations.
B.
Proper use of professional qualifications.
C.
Not engaging in any act of dishonesty, fraud or deceit.
D.
Preservation of client confidentiality.
8.
Efe Edoh, who has just passed the final stage of the CIS professional examination and has been inducted by the NSE as a dealing member after completing the 40-day mandatory training, may be addressed as:
A.
Efe Edoh, ACS.
B.
Efe Edoh, Graduate CIS.
C.
Efe Edoh, ACIS.
D.
None of the above.
9.
Which of the following does not amount to misrepresentation as provided by the CIS
Code and Standards? If a CIS member or registered student:
A.
Discusses the expected performance of an investment with a client.

10.
Which of the following is likely to be the least important in enabling a corporate board to exercise its duty by acting in the long-term interest of shareholders?
A.
The board meets regularly outside the presence of management.
B.
A majority of the board members are independent of the management.
C.
The board had representatives from key suppliers and important customers.
D.
The board chairman is not the CEO.
11.
Which of the following statements about an investment supervisor’s responsibilities is true? A supervisor:
A.
Is not expected to know what constitutes an adequate compliance system.
B.
May not be responsible for instructing those to whom he has delegated authority about methods to detect and prevent violations of the law and standards.
C.
Should bring an inadequate compliance system to the attention of management and recommend corrective action.
D.
None of the above.
12.
The basic purpose of the provisions of CIS Code and Standards on “priority of transactions” is that employees should not:
A.
Be disorganized in their trading activities.
B.
Disrupt the trading policy of their firm.
C.
Treat all customers equally.
D.
Place their own personal interests above those of their customers or employer.
13.
Tayo Uche, a CIS student working as an analyst for an investment bank, recently suspected that one of her co-workers, Bello Peters, in the mergers and acquisitions department, has been illegally tipping off his brother-in-law about upcoming mergers. Tayo should:
A.
Report her discovery to her supervisor.
B.
Inform the SEC.
C.
Inform the NSE.
D.
Tell Peters to stop, because his activities are illegal.
B.
Gives assurances or guarantees regarding the return of an investment only orally and not in writing.
C.
Claims that his firm can provide a service it is not capable of providing, as part of marketing efforts.
D.
None of the above.
14.
While working on an imminent IPO, Abass Ojo, FCS, receives information from his client that leads him to believe that the firm’s financial statements were cosmetic and thus overstate the firm’s financial position. Abass should:
A.
Report his finding to the Securities and Exchange Commission.
B.
Immediately dissociate himself from the IPO in writing.
C.
Inform the client of the problem and issue a press release correcting the statements.
D.
Seek advice from his firm’s legal counsel as to the appropriate action to take.
15.
A CIS member at a brokerage firm, Mojo Jojo, ACS had just bought 3,000 shares of First Bank for his personal account. Mojo Jojo learns that his firm is preparing an investment report with a buy recommendation on the First Bank stock. According to the CIS Code and Standards, Mojo Jojo should:
A.
Sell his stock within 30 days and disclose this action to his firm.
B.
Take no action to disclose his beneficial ownership in the First Bank stock.
C.
Request that his firm disclose his beneficial ownership in the investment report.
D.
Sell his stock immediately and disclose this action to his firm.
16.
The SEC Code of Ethics for employees of Issuing Houses provides that an employee is allowed to:
A.
Lodge proceeds from an issue in his account or in the accounts of others
B.
Hold for a minimum period of six months subsequent to the issue, any holding in security packaged by his employer before sale may be executed.

17.
Kunle Adara works for a small money management firm that specializes in pension accounts. Recently a friend asked him to act as a part-time manager for the Eko
Akete pension fund. Kunle is considering the offer. Before he accepts, he should:
A.
Inform his current clients in writing, get their permission, and discuss the offer with his employer.
B.
Obtain written permission from both his employer and the Eko Akete pension fund.
C.
Inform his current clients in writing and get their permission.
D.
Simply take up the offer since this is on a part-time basis.
18.
For the past eight years Raymond Ajala, FCS has worked for Landover Investments
Limited. Raymond will be leaving their employment at year end to start up his own investment management firm. Under the CIS Code and Standards, which of the following activities is permitted for Raymond to do after leaving the company:
A.
Poach two staff of Landover Investments.
B.
Solicit Landover Investments’ clients.
C.
Copy Landover Investments’ computerised stock evaluation model.
D.
Use promotional materials to launch his investment management business.
19.
Mary Audu, a CIS member, is a securities trader for a small stockbroking firm. Which of the following is least likely a requirement of CIS Code and Standards with respect to maintaining her competency?
A.
She should take reasonable action to ensure that she has sufficient knowledge of securities and investment practice.
B.
She has a responsibility to be competent, conscientious, and effective in her work.
C.
She should maintain her competency through professional development.
D.
She should be able to demonstrate her versatility by undertaking work in which she may not have had previous experience or competence.
20.
What is conflict of interest?
A.
Not to worry about someone else’s interest if it competes with your own.
B.
A tension between two employees of the same organization.
C.
You have the same obligations and responsibilities as another party.
D.
A tension between competing obligations and responsibilities.
C.
Knowingly submit false information to management or regulatory authorities.
D.
Engage in an alliance or arrangement with a view to interfering with the market
21.
If a CIS member or registered student gains access to material non-public information as a result of a fiduciary, special or confidential relationship, which of these represents the appropriate action he should take in line with the Code and
Standards?
A.
He should not communicate the information to other parties outside the relationship.
B.
He should not take investment action on the basis of such information.
C.
He should give a report on such information to his supervisor immediately.
D.
(A) and (B) only.
22.
Which of the following is most likely to conflict with the CIS Code and Standards?
A.
Analysts may change their investment recommendations without obtaining approval from their supervisors.
B.
A portfolio manager should conduct a fact-finding about a new customer before undertaking investment action on the customer’s behalf.

C.
An analyst shall not engage in any transaction with a client when acting as a principal or agent for an associate without the knowledge and consent of the client.
D.
The confidentiality of personal account transactions by brokers should always be guaranteed.
23.
Which of the following statements is least likely to be correct? A CIS member or registered student must:
A.
Cooperate to serve the objectives of the Code and Standards.
B.
Ensure all information documents reports and returns required by the CIS are produced accurately, honestly and timely.
C.
Not take adverse action against a person who discloses illegal conduct or a breach of the code of ethics and Standards.
D.
Comply with the more generally acceptable provision in the event of a conflict between the law and CIS Code and Standards.
24.
Based on the CIS Code and Standards, a member is not expected to:
A.
Report to his employer the receipt of gifts and additional compensation from clients.
B.
Disclose to clients his beneficial ownership of securities for which he makes recommendation or takes investment action.
C.
Put their employer’s interest above their client’s interest.
D.
None of the above.
25.
According to the CIS Code and Standards, which of the following is a breach of duty to a client?
A.
Having a reasonable basis for investment research and recommendation.
B.
Non-disclosure of basic principles and methods used for valuation of securities.
C.
Exercising diligence and thoroughness in investment analysis.
D.
Making reasonable effort to avoid material misrepresentation.
26.
Fatimah, a CIS member had copied and used in substantially the same form as the original, material that had been prepared by another person without acknowledging and identifying the name of the author, publisher or source of the material. Which of the following is correct?
A.
Fatimah has violated the CIS Code and Standards.
B.
Fatimah has not violated the CIS Code and Standards since she did not misrepresent herself as the original author.
C.
Fatimah has done nothing wrong as long as she did not make any commercial gain from the material.
D.
None of the above.
27.
The Code of Corporate Governance in Nigeria issued by SEC stipulates that membership of the Board of Directors should not be less than:
A.
3
B.
4
C.
5
D.
7
28.
According to the SEC Code of Conduct for Capital Market Operators and their
Employees, the names of staff dismissed for any fraudulent act, dishonesty, misbehavior or any other misconduct should be communicated to:
A.
EFCC.
B.
SEC, SROs and EFCC.
C.
SROs.
D.
SEC and SROs.

29.
Julie, a CIS member took a bet with his colleague about the future direction of the stock market in the foreseeable future. According to the CIS Code and Standards,
Julie:
A.
Had violated the Code and Standards by taking a bet on the market.
B.
Had done nothing wrong since he took a bet with a professional colleague.
C.
Had not violated the code because there was no monetary reward associated with the bet.
D.
Had violated the code because his supervisor was not aware of the bet.
30.
The SEC Code of Ethics for Investment Advisers/Portfolio Managers provides that an investment adviser shall do which of the following?
I.
Send at the end of every month statements to clients showing their investment position during the period.
II.
Display impartiality and objectivity in his relationship with his clients.
III.
Disclose to clients when giving investment advice whether the advice is based on facts or opinion.
A.
I and II only.
B.
I and III only.
C.
II and III only.
D.
All of the above.
31.
According to the CIS Code and Standards, a broker should update his knowledge about a client’s circumstances at least:
A.
Monthly.
B.
Quarterly.
C.
Half-yearly.
D.
Annually.
32.
Which of the following is incorrect in respect of ‘‘fiduciary duty’’ as defined in the
CIS Code and Standards?
A.
A fiduciary must always take responsibility if an inventor’s portfolio incurs losses in the capital market.
B.
It is the duty which is owed by a party who has a relationship of trust and confidence to another party.
C.
A person who has a fiduciary duty to another must act in the other’s best interest.
D.
A fiduciary is held to a higher standard of care and higher degree of knowledge than an average person.
33.
Which of these actions is inconsistent with the provisions of CIS Code and Standards with respect to fiduciary duties of members and registered students?
A.
Discharging their duties in the best interest of their clients.
B.
Performing their professional duties with care, skill, prudence and diligence.
C.
Seeking to maximize the gains of their employers at all times.
D.
Not giving priority to their own interests over those of any third party.
34.
Which of the following is critical to maintaining the public trust in financial markets and in the investments profession?
A.
High ethical standards and professional conduct.
B.
Effective regulatory monitoring and compliance.
C.
Transparency and accountability.
D.
All of the above.
35.
CIS Membership Regulation and Code of Conduct requires that when there is conflict or dispute between members, such grievances should be:
A.
Channelled to the Institute through the President.

B.
Channelled directly to the Conflict/Dispute Resolution Committee.
C.
Channelled to the Institute through the Registrar.
D.
Channelled directly to the Council of the Institute.
Law Relating to Securities and Investments (36 - 65)
36.
A type of agent, who in consideration of extra commission, guarantees his principal that third parties introduced by him to the principal will pay all sums due under the contracts involved is referred to as a:
A.
Del indemintus agent.
B.
Del delegatus agent.
C.
Del credere agent.
D.
Del judicatus agent.
37.
Which of the following events will terminate an agency relationship by operation of law?
I.
Death of principal.
II.
Bankruptcy of agent.
III.
Intervening illegality.
IV.
Insanity of agent.
A.
I, II and III only.
B.
I, II and IV only.
C.
I, III and IV only.
D.
II, III and IV only.
38.
An obligation which though it must be performed, is not so vital that a failure to perform it goes to be substance of the contract, describes a:
A.
Condition.
B.
Warranty.
C.
Innaminate term.
D.
Representation.
39.
What action must be taken when a foreign bill is dishonoured either by nonacceptance of non-payment?
A.
Noting and protesting.
B.
Noting and presentation.
C.
Noting and litigation.
D.
Noting and information.
40.
What type of crossing of a cheque is effected by two traverse lines with or without anything being written between them?
A.
Ordinary crossing.
B.
Special crossing.
C.
General crossing.
D.
Extraordinary crossing.
41.
Which of the following are the duties of a banker to his customer?
I.
To grant overdraft facility to his customer.
II.
To honour the customer’s cheques.
III.
To regularly inquire about the business of the customer.
IV.
To pay only upon the customer’s instruction.
A.
I and II only.
B.
II and III only.
C.
II and IV only.
D.
II, III and IV only.

42.
Which of the following are not incorporation documents?
I.
Certificate of Incorporation.
II.
Statement of share capital.
III.
Statutory declaration of compliance.
IV.
Three years audited accounts of the promoter.
A.
I and II only.
B.
I and III only.
C.
I and IV only.
D.
I, II and III only.
43.
The minimum share capital of a private and a public company respectively are:
A.
N45,000 and N250,000
B.
N10,000 and N500,000
C.
N100,000 and N750,000
D.
N1 million and N5 million.
44.
Which of the following meetings must a public company hold within six months after its incorporation?
A.
Compulsory meeting.
B.
Statutory meeting.
C.
Initial meeting.
D.
Extra ordinary meeting.
45.
Which of the following are the essential formalities required for a valid Will?
I.
It must be prepared by a legal practitioner.
II.
It must be in writing.
III.
It must be deposited at the High Court.
IV.
It must be attested.
A.
I and II only.
B.
II and III only.
C.
II and IV only.
D.
II, III and IV only.
46.
Which of the following are not charitable trusts?
I.
Trust for the eradication of international terrorism.
II.
Trust for the relief of poverty.
III.
Trust for advancement of family life and co-existence.
IV.
Trust for the advancement education.
A.
I and II only.
B.
I and III only.
C.
I and IV only.
D.
II, III and IV only.
47.
What is the statutory maximum of trustees that may be appointed where the trust property does not include land?
A.
Two.
B.
Three.
C.
Four.
D.
Six.
48.
Under what conditions would a new trustee be appointed to replace an existing trustee?
I.
If the trustee desires to be discharged.
II.
If the trustee is continuously out of Nigeria for more than nine months.

III.
If the trustee commits a breach of contract.
IV.
If the trustee is removed under a power in the trust instrument.
A.
I and II only.
B.
I and III only.
C.
I and IV only.
D.
III and IV only.
49.
Which of the following courts has jurisdiction to grant Letters of Administration in respect of the estate of a deceased person who died intestate?
A.
High Court of a State.
B.
Federal High Court.
C.
Court of Appeal.
D.
High Court of Federal Capital Territory.
50.
Which of the following are not required for the creation of a valid trust?
I.
Certainty of trustworthiness.
II.
Certainty of subject matter.
III.
Certainty of transparency.
IV.
Certainty of beneficiaries.
A.
I and II only.
B.
I and III only.
C.
II and III only.
D.
III and IV only.
51.
A type of mortgage which is created when the mortgaged property is transferred to the mortgagee and then re-transferred to the mortgagor when the debt is paid is:
A.
Enforceable mortgage.
B.
Legal mortgage.
C.
Common mortgage.
D.
Statutory mortgage.
52.
Which of the following types of property remains with the pledgor in a pledge transaction?
A.
De factor property.
B.
Special property.
C.
General property.
D.
Beneficial property.
53.
A document which a company intending to issue its securities to the general public must prepare, register and publish is referred to as a:
A.
Document of Offer.
B.
Invitation to treat.
C.
Prospectus.
D.
Notice to offer.
54.
Which of the following qualifies as a “Capital Market Operator” under the
Investment and Securities Act (Cap I. 24) 2004?
I.
Commissioner of the Securities and Exchange Commission.
II.
Fellows of the Chartered Institute of Stockbrokers.
III.
Trustees of a trust deed.
IV.
Dealers.
A.
I and II only.
B.
II and III only.
C.
III and IV only.
D.
II, III and IV only.
55.
Equity is a system of rules which:

A.
Replaces the common law.
B.
Supplements the common law and is subordinate to it.
C.
Supplements the common law and prevails in the event of a conflict.
D.
Has fallen into disuse in modern times.
56.
Which of the following are the functions of the Central Bank of Nigeria:
I.
To issue legal tender currency in Nigeria.
II.
To act as banker and financial adviser to the three arms of government.
III.
To act as banker and financial adviser to the Federal Government.
IV.
To institute investigation into the financial affairs of government parastatals at all levels.
A.
I and II only.
B.
I and III only.
C.
I and IV only.
D.
I, III and IV only.
57.
Which of the following are the attributes of the Nigerian Investment Promotion
Commission?
I.
It is created under a Statute of General Application.
II.
It is a body corporate.
III.
It is an agent of all the States in Nigeria for the purpose of co-ordinating and monitoring all their investment promotion activities.
IV.
It has perpetual succession.
A.
I and II only.
B.
II and III only.
C.
II and IV only.
D.
II, III and IV only.
58.
Which of the following is “the market” created under the Foreign Exchange
(Monitoring and Miscellaneous Provisions) Act 1995?
A.
International Foreign Exchange Market.
B.
National Foreign Exchange Market.
C.
Independent Foreign Exchange Market.
D.
Autonomous Foreign Exchange Market.
59.
Which of the following is not a category of contractual terms?
A.
Innominate.
B.
Conditions.
C.
Warranties.
D.
Guarantees.
60.
What is meant by pecuniary loss?
A.
Non-monetary loss.
B.
Physical injury.
C.
Mental distress.
D.
Monetary loss.
61.
Which of the statements is untrue?
A.
Decisions of the Supreme Court bind all other courts.
B.
The Supreme Court is not bound by its previous judgment.
C.
The decisions of the Supreme Court can render an Act of the National Assembly void.
D.
Appeals can be made from the Supreme Court to the West African Court of
Appeal.
62.
Statutory meetings are held by a:
A.
Company limited by share.

B.
Public company.
C.
Partnerships.
D.
Company limited by guarantee.
63.
By what means may a company protect itself against under subscription of its shares which has been offered to the public?
A.
Insurance.
B.
Placement.
C.
Public Offer.
D.
Underwriting.
64.
_________ occurs when a person dies after making a will, but the will is subsequently declared invalid:
A.
Probate.
B.
Intervivos.
C.
Donatio Mortis Causa.
D.
Intestacy.
65.
Who manages a debenture issued generally to the public on behalf of the debenture holders?
A.
Directors.
B.
Trustees.
C.
Corporate Affairs Commission.
D.
The debenture holders themselves.
Regulations of Securities and Corporate Finance (66 - 100)
66.
How many months after initial payment are dividends due to a shareholder considered ‘unclaimed dividends’?
A.
12 months.
B.
15 months.
C.
30 months.
D.
36 months.
67.
Which of the following parties is not required to attend a completion board meeting?
A.
The issuer.
B.
The underwriter.
C.
Stockbroker to the issue.
D.
Representative of Senate Committee on Capital Market.
68.
The settlement period for equities in the Nigerian Stock Exchange is:
A.
T
B.
T+2
C.
T+4
D.
None of the above.
69.
Every Exchange member, broker or dealer is required to preserve daily records of transactions and other related records for a minimum period of _________
A.
3 years.
B.
4 years.
C.
5 years.
D.
6 years.
70.
Customers’ orders transmitted through which of the following means is not acceptable?
A.
By fax.
B.
By telephone.
C.
By e-mail.
D.
None of the above.
71.
In line with NSE Article 2, a dealing member who is aware of any breach of rules and regulations has a responsibility to___________

A.
Report the breach to the regulatory authorities.
B.
Report the breach to the police.
C.
Educate the erring member on the breach.
D.
Document the breach in writing and keep a proper record of it.
72.
What is the acceptable limit allowed for payment of cash for sale or purchase of securities in Nigeria?
A.
Cash payment is prohibited.
B.
Maximum limit of N20,000
C.
Maximum limit of N50,000
D.
Maximum of N100,000
73.
Which of the following is not a function of the Nigerian Stock Exchange?
A.
Registration of securities.
B.
Investors’ education.
C.
Provision of trading platform.
D.
Ensuring transparency and market integrity.
74.
Under SEC Rule 110, which of the following parties is considered an insider?
A.
A shareholder who own 5% of the shares of a company.
B.
The Chairman.
C.
The CEO’s brother.
D.
(A) and (B) only.
75.
James would like to open a stockbroking account with Megawealth Limited, a stockbroking firm. Which of the following information is not required?
A.
Mother’s maiden name.
B.
Occupation.
C.
Means of identification e.g. drivers licence.
D.
Two referees.
76.
According to SEC Rule 40 on the book building process for equities, what is the minimum percentage of an offer that must be reserved for retail investors?
A.
20%
B.
25%
C.
30%
D.
40%
77.
SEC Rule 89 requires that the offer of private placement should be to no than
____________ subscribers.
A.
50
B.
100
C.
500
D.
1000
78.
What is the implication of the fact that Chartered Institute of Stockbrokers is an
SRO?
A.
Members regulate their own activities.
B.
CIS reports directly to the Federal Ministry of Finance.
C.
CIS cannot sanction its members.
D.
None of the above.
79.
What can an aggrieved investor do to seek redress if he feels he has been unfairly treated by a broker in issues relating to his transactions or investment in the capital market?
A.
Report the case to Chartered Institute of Stockbrokers.
B.
Report the case to the NSE.
C.
Report the case to the SEC.

D.
Any of the above.
80.
Which of the following parties has a part to play in the transmission of share certificates?
A.
The NSE.
B.
The SEC.
C.
The Registrar.
D.
The settlement bank.
81.
Which of the following procedures and practices would not enhance the effective supervision and control of the day-to-day operations in a stockbroking firm, in line with the provisions of NSE Articles?
A.
Proper authorization of transactions.
B.
Comprehensive policy manuals on key areas of operations.
C.
Training and education of staff.
D.
None of the above.
82.
Securities offered through which of the following medium does not need to be registered with SEC?
A.
Offer for introduction.
B.
Rights issue.
C.
Private placement by private companies.
D.
Private placement by public companies.
83.
A company Registrar is expected to issue shares certificate to allottees in the case of public issues within:
A.
Two weeks of of allotment.
B.
Two months of allotment.
C.
Three months of allotment.
D.
Six months of allotment.
84.
An investor in stocks in the Nigerian capital market is expected to have:
A.
An investor’s account number.
B.
A unique CSCS clearing house number.
C.
A unique NSE identification number.
D.
(A) and (B) only.
85.
Which of the following is not a benefit of introducing the CSCS into the Nigerian stock market?
A.
Improvement in market liquidity.
B.
Improvement in market transparency.
C.
Reduction in market risk.
D.
Increase in market turnover.
86.
E-dividends are expected to be paid into the bank account of a shareholder within_____________ hours after payment by a quoted company.
A.
24 hours.
B.
48 hours.
C.
36 hours.
D.
72 hours.
87.
What is the first step to be taken by a potential investor in the secondary market of the NSE, who has never participated in the market before?
A.
Open an investor’s account with a stockbroking firm of his choice.
B.
Complete the investor’s identification form at the NSE.
C.
Register with the CSCS.
D.
None of the above.

88.
Which of the following is not correct about rules and procedures when using shares as collateral for borrowing?
A.
A memorandum, jointly signed by the lender and borrower is required before
CSCS could place a lien on the shares.
B.
Lien is placed on share whose owners are the direct borrowers, not third parties to the contract.
C.
Once all conditions are satisfied, CSCS moves affected stocks to a reserve lien account with the interest of lender noted.
D.
Only the borrower should advise CSCS to remove the lien when due.
89.
Who manages the trade guarantee fund?
A.
CSCS.
B.
NSE.
C.
Settlement banks.
D.
Trustees.
90.
The investor protection fund is not meant to compensate investors who suffer pecuniary loss through which of the following?
A.
Bankruptcy of a dealing member firm.
B.
Negligence of a dealing member firm.
C.
Defalcation committed by employees of a dealing member firm in the course of normal business.
D.
Wrong investment advice by the stockbroker.
91.
Insider dealing occurs:
A.
Where a person has access to confidential and price sensitive information not generally available to the public.
B.
Where a person has access to confidential and price sensitive information not generally available to the public and utilizes such information for his own account or for his benefit.
C.
Where a person has access to confidential and price sensitive information not generally available to the public and makes it available to a third party who utilises it for his benefit.
D.
(B) and (C) only.
92.
Stock prices in the secondary market are affected by which of the following factors?
A.
The global economy.
B.
Speculative activities.
C.
Regulatory pronouncements.
D.
All of the above.
93.
Which of the following is not a benefit of listing a company on the stock exchange?
It:
A.
Enhances access to capital.
B.
Eliminates the risk of takeover.
C.
Enhances marketability of shares.
D.
Improves corporate governance.
94.
Which of the following is not correct? A broker-dealer:
A.
Must be registered with SEC.
B.
Must be registered with NSE.
C.
Must have at least 3 qualified brokers in its employment.
D.
Earns commission on transaction done on behalf of its clients.
95.
At the regulatory approval stage of a primary issue, which of the following activities does not take place?
A.
Application to SEC by the issuing house.
B.
Application to NSE submitted by stockbroker.

C.
Vetting and approval by the quotation committee of NSE.
D.
Verification of offer documents by CIS.
96.
For a company to commence trading after an initial public offer, which of the following documents are required?
A.
Declaration of compliance.
B.
Copy of allotment proposal.
C.
Copies of newspaper adverts announcing allotment.
D.
All of the above.
97.
Which of the following does not regulate the conduct of securities and investment business in Nigeria?
A.
Investment and Securities Act, 2007.
B.
NSE Articles.
C.
CSCS Investment Codes and Guidelines.
D.
CIS Code of Ethics and Standards of Professional Conduct.
98.
Margin trading:
A.
Is currently prohibited in Nigeria.
B.
Involves selling securities that the seller does not own.
C.
Is synonymous with securities lending.
D.
Can be extremely risky because both gains and losses are amplified.
99.
A member firm of the Nigerian Stock Exchange is required to submit audited annual account to the Exchange within __________ of the accounting year end.
A.
1 month.
B.
2 months.
C.
3 months.
D.
6 months.
100.
Which of the following indexes currently exist on the Nigerian stock exchange?
A.
NSE 30 Index.
B.
NSE Oil & Gas 10 Index.
C.
NSE Banking 5 Index.
D.
(A) and (C) only.
Total = 100 marks