1. What is investment risk..? Ans: Probability that an actual return on an investment will be lower than the investor's expectations.

All investments have some level of risk associated it due to the unpredictability of the market's direction. 2. What are jobbers? Ans: A jobber is a market dealer, buying and selling in quick succession for a profit of few ticks ( few paise ). These are also called as "scalpers" at few places. 3. What is bull market? Ans: A financial market of a group of securities in which prices are rising or are expected to rise. The term "bull market" is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities. 4. What is risk free rate of return? Ans: The theoretical rate of return of an investment with zero risk. The risk-free rate represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time. 5. What is speculation? Ans: Taking large risks, especially with respect to trying to predict the future; gambling, in the hopes of making quick, large gains. speculation in the stock market is when someone believes a stock or commodity is going to to up, without basing that on any technical or fundamental analysis. 6. Expand OTCEI? Ans: 'Over-The-Counter Exchange Of India - OTCEI' An electronic stock exchange based in India that is comprised of small- and medium-sized firms looking to gain access to the capital markets. 7. What do u mean by book value.? Ans: A company's common stock equity as it appears on a balance sheet, equal to total assets minus liabilities, preferred stock, and intangible assets such as goodwill. This is how much the company would have left over in assets if it went out of business immediately.The value of an asset as it appears on a balance sheet, equal to cost minus accumulated depreciation. 8. What is zero coupon value? Ans: A zero-coupon bond (also called a discount bond or deep discount bond) is a bond bought at a price lower than its face value, with the face value repaid at the time of maturity.[1] It does not make periodic interest payments, or have so-called "coupons," hence the term zero-coupon bond. When the bond reaches maturity, its investor receives its par (or face) value.

9. What u mean by stop loss order? Ans: An order placed with a broker to sell a security when it reaches a certain price. A stop-loss order is designed to limit an investor's loss on a security position. Also known as a "stop order" or "stop-market order". 10. What are the uses on industrial analysis.? Ans: Uses of industrial analysis are:
1. 2. 3. 4.

It helps in finding out the cycle of industry. It helps in attaining economies of scale. Analysing the level of competition. It helps in differentiating your product with competitors.

11. How do u calculate P/E ratio? Ans: PriceEarningsRatio = Market priceper equity share Earning Per Share. 12. Define alpha? Ans: A measure of performance on a risk-adjusted basis. Alpha takes the volatility (price risk) of a mutual fund and compares its risk-adjusted performance to a benchmark index. The excess return of the fund relative to the return of the benchmark index is a fund's alpha. 13. What do u mean by KERB trading? Ans: Trading that occurs outside of general market regulations. Curb trading commonly occurs through computers or telephones after the official exchanges have closed. Also known as "kerb trading". 14. What do u mean by market making? Ans: A broker-dealer firm that accepts the risk of holding a certain number of shares of a particular security to facilitate trading in that security. Each market maker competes for investor order flow by displaying buy (bid) and sell (ask) quotations for a specific number of shares (size). Once an order is received, the market maker immediately sells from its own inventory or seeks an offsetting order. This process takes place in seconds. Market makers buy and sell for their own accounts to make a profit. 15. What do u mean by resistance level? Ans: Resistance level indicates that the stock or index is finding it difficult to break through it, and may head lower in the near term. The more times that the stock or index has tried unsuccessfully to break through the resistance level, the more formidable that area of resistance becomes. 16. How do u calculate interest coverage ratio?

17. What do u mean by circuit breaker? Ans: Refers to any of the measures used by stock exchanges during large sell-offs to avert panic selling. Sometimes called a "collar." After an index has fallen a certain percentage, the exchange might activate trading halts or restrictions on program trading. For example, if the Dow Jones Industrial Average falls by 10%, the NYSE might halt market trading for one hour. There are other circuit breakers for 20% and 30% falls. 18. What u mean by MACD.? Ans: Moving average convergence divergence (MACD) is a technical analysis indicator. It is used to spot changes in the strength, direction, momentum, and duration of a trend in a stock's price. 19. What u mean by market order? Ans: An order that an investor makes through a broker or brokerage service to buy or sell an investment immediately at the best available current price. A market order is the default option and is likely to be executed because it does not contain restrictions on the buy/sell price or the timeframe in which the order can be executed. A market order is also sometimes referred to as an "unrestricted order." 20. What do u mean by semi-strong form of EMH? Ans: The semi-strong form EMH Efficient market hypothesis (EMH) implies that the market is efficient, reflecting all publicly available information. This hypothesis assumes that stocks adjust quickly to absorb new information. The semi-strong form EMH also incorporates the weak-form hypothesis. Given the assumption that stock prices reflect all new available information and investors purchase stocks after this information is released, an investor cannot benefit over and above the market by trading on new information. 21. What do u mean by relative strength index? Ans: A technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula RSI = 100 - 100/(1 + RS*). 22. What are warrants ? Ans: A warrant is a security that entitles the holder to buy the underlying stock of the issuing company at a fixed exercise price until the expiry date. 23. What is SML? Ans: Security Market Line SML.A line that graphs the systematic, or market, risk versus return of the whole market at a certain time and shows all risky marketable securities. Also referred to as the "characteristic line".