Prelims-IAS –ECONOMICS MCQ-23
- GDR is denominated in some freely convertible currency generally in Dollar but euro etc. is also possible.
- Both way conversion is possible.
- A rise in ‘SENSEX’ means an overall rise in prices of shares of group of companies registered with Bombay Stock Exchange.
- Market capitalization is calculated by multiplying a company’s shares outstanding by the current market price of one share.
- The investment community uses this figure to determine a company’s size, as opposed to sales or total asset figures, frequently referred to as market cap or M-Cap.
- In share market bulls and bears are in constant struggle, lets learn about these terms,
- A bull market is when everything in the economy is great, people are finding jobs, gross domestic product (GDP) is growing, and stocks are rising.
- Picking stocks during a bull market is easier because everything is going up.
- Bull markets cannot last forever though, and sometimes they can lead to dangerous situations if stocks become overvalued.
- If a person is optimistic and believes that stocks will go up, he or she is called a “bull” and is said to have a “bullish outlook”.
- A bear market is when the economy is bad, recession is looming and stock prices are falling.
- Bear markets make it tough for investors to pick profitable stocks.
- One solution to this is to make money when stocks are falling using a technique called short selling.
- Another strategy is to wait on the sidelines until you feel that the bear market is nearing its end, only starting to buy in anticipation of a bull market.
- If a person is pessimistic, believing that stocks are going to drop, he or she is called a “bear” and said to have a “bearish outlook”.
- Mutual funds are regulated by SEBI.
- In case of Inflation Indexed Bond, interest rate is calculated as per the CPI.
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