JAMB Commerce Past Questions & Answers - Page 95

471.

A prerequisite for admission into the Second Tier Securities Market is for a company to?

A.

make 20% of its equity share available to the public for subscription

B.

have a minimum of 100 shareholders

C.

have a maximum of 100 shareholders

D.

make 10% of its equity share available to the public for subscription

Correct answer is B

Second-Tier Securities Market (SSM); A second market established by The Stock Exchange in Lagos in 1985 to list the securities of smaller companies which are unable to meet the requirements for listing on the more stringent segment (main market) of the Exchange.

 Requirements for trading in a second-tier security market

  • The company must be incorporated as a public limited company.
  • The shareholders must not be less than 100.
  • The company must sign a general undertaking with the stock exchange market.

472.

The instrument used in the capital market is?

A.

treasury bills

B.

bill of exchange

C.

stock

D.

debenture

Correct answer is C

A stock is a type of investment that represents an ownership share in a company.  Stocks are traded in the Capital market

473.

A characteristics of money which ensures that its value is not lost is?

A.

homogeneity

B.

easy portability

C.

divisibility

D.

relative scarcity

Correct answer is D

Relative Scarcity: Money must be relatively scarce, that is, it must not be too many so as not to lose its value. 

474.

One of the functions of NACCIMA is?

A.

negotiating with labour unions in matters of wages and conditions of service

B.

pooling of members' resources for long-term investment

C.

disseminating information to members on matters relating to tariffs

D.

ensuring uniformity in labour matters and industrial relations

Correct answer is D

Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture is an organisation for all Nigerian state and related Chambers of Commerce, Ensuring the creation of a conducive atmosphere for the pursuit of commerce, industry and all other forms of economic activities of interest to the Private Sector.