Top 50+ Solved Prospectus MCQ Questions Answer
Q. When there is a untrue statement in a prospectus who can sue
a. Subscribed in primary market
b. Subscribed in secondary market
c. Rights issue
d. None of the above
Q. Which of the following are not required to issue prospectus?
a. Private company
b. In case of right issue
c. Sweat equity issue
d. All the above
Q. _______are the prospectus issued instead of full prospectus
a. Abridged
b. Statement in lieu
c. Shelf
d. Red herring
Q. Which one of the following has a right to claim compensation for any loss due tomisstatement in prospectus
a. Purchasing shares in Primary Market
b. Secondary Market
c. Subscribers to memo.
d. All the above
Q. What is the liability not delivering that can be imposed for statement in lieu ofprospectus_________
a. Fine – 10,000
b. Imprisonment – 2 years
c. Both (a) & (b)
d. None of the above
Q. _______ are the prospectus issued by the issuing house
a. Deemed prospectus
b. Shelf prospectus issued by the issuing house
c. Red herring
d. None of the above
Q. _________ prospectus were issued in case securities were issued in stages
a. Deemed
b. Shelf
c. Red herring
d. None of the above
Q. ________are required to file prior to making second and subsequent issue of securitiesin case shelf prospectus are filed:
a. Information memorandum
b. Information articles
c. Form 13
d. None of the above
Q. Information memorandum + shelf prospectus together constitutes ________
a. Memorandum
b. Articles
c. Prospectus
d. None of the above
Q. _________ prospectus were issued in order to test the market before finalizing issue size/price.
a. Deemed
b. Shelf
c. Red herring
d. None of the above
Q. What is the punishment for directors, promoters and other persons for Misrepresentationin prospectus
a. Fine 50,000
b. 2 years imprisonment
c. Both of the above
d. None
Q. When a private company is converted into public company. In which form it should be
a. Schedule III
b. Schedule IV
c. Schedule VI
d. None of these