JAMB Commerce Past Questions & Answers - Page 86

426.

Second-tier Securities Market differ from the First-tier Securities Market in that the former is?

A.

highly restricted

B.

regulated by the SEC

C.

regulated by the NIPC

D.

less restricted

Correct answer is D

The First Tier Securities Market provides a forum for buying and selling of shares of companies in the market. The First-Tier markets are for well established large scale. companies.

 A second-tier security market is a market where securities of companies that cannot be traded in the first-tier security market are quoted. It is for smaller companies which are unable to meet the requirements for listing on the more stringent segment (main market) of the Exchange

427.

A broker is an agent who links a potential investor with?

A.

a shareholder who wants to register a company

B.

other members of the exchange who want to trade

C.

governement official on the exchange

D.

a quoted company

Correct answer is D

A stockbroker is a professional who executes buy and sell orders for stocks and other securities on behalf of clients.

428.

An example of a trade association is?

A.

ALGON

B.

NLC

C.

NURTW

D.

NULGE

Correct answer is A

No explanation has been provided for this answer.

429.

A source of business financing which involves pledging of a specific assets is?

A.

bond

B.

mortage

C.

debentures

D.

loan

Correct answer is B

A mortgage is a loan in which property or real estate is used as collateral. The borrower enters into an agreement with the lender (usually a bank) wherein the borrower receives cash upfront then makes payments over a set time span until he pays back the lender in full.

430.

In the event of voluntary liquidation, the appointed of a liquidator is the responsibility of the?

A.

directors

B.

creditors

C.

promoters

D.

court

Correct answer is A

What is a Liquidator? A liquidator or an official receiver manages the entire liquidation process. He or she is appointed when a company goes into liquidation or is wound up by the Court in a compulsory liquidation process, which is brought about by a disgruntled creditor. In a voluntary liquidation, the board of directors appoint a liquidator