Fundamentals of Stock Trading — DU Bachelor of Business Administration (Financial Investment Analysis) Previous Year Question Papers

1. Define investment and explain its key characteristics. How does it differ from speculation? Also, discuss the primary factors investors consider while planning an investment. (18) Discuss the various types of securities available for investment, focusing on equity shares, bonds, and government securities. Highlight their distinct features and suitability for different investors. (18) 5. Write a detailed note on the role of AMCs and custodians in ensuring transparency and accountability in mutual fund operations. (18) Write a short note on any two:- (c) Open-ended and Close-ended fund (d) After Market Order (AMO) (9x2) Write a short note on any two:- (a) Term Plan VS ULIP (b) Capital Market (d) Limit Price and Market Price (2x6) 2. Describe the process and significance of an Initial Public Offering (IPO) and a Follow-on Public Offering (FPO). Differentiate between the two modes of offering equity shares. (18) Discuss the clearing and settlement process of equity trades at NSE, highlighting the roles of NSCCL and depositories in ensuring smooth transactions. (18) 3. Define and differentiate the terms Bid Price, Ask Price, and Bid-Ask Spread with examples. Also, discuss the concepts of LTP (Last Traded Price) and ATP (Average Traded Price). (18) Describe the structure of a mutual fund and explain the roles of the sponsor, board of trustees, Asset Management Company (AMC), and custodian. 4. Define Net Asset Value (NAV). Explain how it is calculated and its significance in mutual fund investments with the help of real mutual fund details. (18)