Nigerian Stock Exchange - JSS3 Social studies Past Questions and Answers - page 1
What does SEC stand for?
Securities and Exchange Commission
Stock and Equity Committee
Systematic Economic Control
What does a share represent?
Ownership in a company
A loan to a company
A government bond
What is the primary role of the Nigerian Stock Exchange (NSE)?
Market Facilitation
Weather Forecasting
Road Infrastructure Development
How does the NSE contribute to capital formation?
By facilitating the issuance of new shares
By providing loans to companies
By reducing market volatility
What is the purpose of securities like stocks and bonds?
Recipe for cooking
Construction of buildings
Investment and earning returns
Why do companies issue securities?
To raise capital
To distribute free products
To hire more employees
How does the NSE contribute to price discovery?
By determining the fair market price
By fixing prices arbitrarily
By ignoring market forces
What is one benefit of owning securities for investors?
Risk Concentration
Risk Elimination
Risk Diversification
What role does liquidity play in securities?
Securities are difficult to trade
Securities can only be exchanged on weekends
Securities can be easily bought or sold
What role does liquidity play in securities?
Securities are difficult to trade
Securities can only be exchanged on weekends
Securities can be easily bought or sold