Practice: 100 questions + 20 exercises
Try each question before opening the answer. All numbers are hypothetical. Got one wrong? Go back to that level and re-read the topic.
100 practice questions
Level 1: FundamentalsReview level →
1.What is a share?Show answer
One unit of ownership in a company.
2.A company with 20,000 shares is worth ₹40 lakh. Value per share?Show answer
₹200.
3.You own 400 of those 20,000 shares. Ownership %?Show answer
2%.
4.Name the two ways to earn from shares.Show answer
Capital appreciation and dividends.
5.What does a demat account hold?Show answer
Shares and securities in electronic form.
6.Difference between primary and secondary market?Show answer
Primary: new shares from the company (IPO). Secondary: existing shares traded between investors.
7.Why do prices rise?Show answer
More demand (buyers) than supply (sellers), usually due to better expectations.
8.What is inflation?Show answer
The general rise in prices over time.
Level 2: Market structureReview level →
9.Who regulates India’s stock market?Show answer
SEBI.
10.How many stocks are in the Sensex?Show answer
30.
11.Name India’s two depositories.Show answer
NSDL and CDSL.
12.What is an ISIN?Show answer
A 12-character unique security identifier.
13.What are FPIs?Show answer
Foreign Portfolio Investors.
14.Define a bear market.Show answer
A prolonged fall in prices, often 20% or more from a high.
15.What does a market-cap weighted index mean?Show answer
Bigger companies have more influence on the index.
16.Which exchange is older?Show answer
BSE (1875).
Level 3: TerminologyReview level →
17.Previous close ₹250, LTP ₹260. Day change %?Show answer
+4%.
18.Price ₹800, shares 10 crore. Market cap?Show answer
₹8,000 crore.
19.Previous close ₹120, 5% band. Upper circuit?Show answer
₹126.
20.50 shares at ₹600; 1:3 split. New holding?Show answer
150 shares at about ₹200.
21.100 shares, 1:1 bonus. New shares?Show answer
200.
22.FV ₹5, dividend 200%. Dividend per share?Show answer
₹10.
23.What is T+1?Show answer
Settlement on the next working day.
24.What is a gap-down?Show answer
Opening well below the previous close.
25.Why is liquidity important?Show answer
It lets you buy/sell quickly at fair prices.
Level 4: Investing basicsReview level →
26.With ₹12,000 and a ₹750 share, how many shares?Show answer
16.
27.Difference between market and limit orders?Show answer
Market fills immediately at best price; limit fills only at your price or better.
28.Bought at ₹400, stop at ₹380, 25 shares. Planned max loss?Show answer
₹500.
29.What is a GTT order?Show answer
An order that stays active (up to ~1 year) and is sent when a trigger price is hit.
30.STT rate on equity delivery?Show answer
0.1% on buy and sell.
31.Is stamp duty charged on buy or sell?Show answer
Buy.
32.Held 14 months, gain ₹2 lakh. Taxable LTCG?Show answer
₹75,000 (after ₹1.25 lakh exemption).
33.After a 25% loss, what gain recovers it?Show answer
33.3%.
Level 5: Trading typesReview level →
34.Max intraday leverage for most equities?Show answer
5× (20% margin).
35.With 4× leverage, a 10% fall costs what % of your money?Show answer
40%.
36.Typical swing trade duration?Show answer
Days to a few weeks.
37.₹1 lakh at 10% for 3 years compounded?Show answer
≈ ₹1,33,100.
38.What is MTF?Show answer
Margin Trading Facility: delivery purchases funded partly by the broker with interest.
39.₹60,000 MTF loan at 15% for 45 days. Interest?Show answer
≈ ₹1,110.
40.What is a margin call?Show answer
A demand to add funds when your margin falls below requirement.
41.Rule of 72 at 9% return: years to double?Show answer
8 years.
Level 6: Fundamental analysisReview level →
42.Profit ₹900 cr, shares 30 cr. EPS?Show answer
₹30.
43.Price ₹750, EPS ₹30. P/E?Show answer
25.
44.Profit ₹400 cr, equity ₹2,000 cr. ROE?Show answer
20%.
45.Debt ₹1,500 cr, equity ₹3,000 cr. D/E?Show answer
0.5.
46.P/E 30, growth 20%. PEG?Show answer
1.5.
47.CFO ₹800 cr, capex ₹300 cr. FCF?Show answer
₹500 cr.
48.Name three red flags.Show answer
Negative CFO with rising profit, high promoter pledging, frequent auditor changes, high related-party deals, rising debt.
49.What is a moat?Show answer
A durable competitive advantage.
50.Which ratio is key for banks: ROCE or ROA?Show answer
ROA (and ROE, P/B).
Level 7: Technical analysisReview level →
51.Open ₹100, close ₹96: bullish or bearish candle?Show answer
Bearish.
52.Define an uptrend.Show answer
Higher highs and higher lows.
53.RSI above 70 is called?Show answer
Overbought.
54.What confirms a breakout?Show answer
A close above resistance on high volume.
55.Golden cross?Show answer
50-day MA crossing above 200-day MA.
56.300 shares at ₹50 and 700 at ₹52. VWAP?Show answer
₹51.40.
57.Shape of a double bottom?Show answer
W.
58.Are indicators guaranteed predictors?Show answer
No.
Level 8: Mutual fundsReview level →
59.₹6,000 at NAV ₹30. Units?Show answer
200.
60.Direct vs regular: which is cheaper?Show answer
Direct.
61.What is an ELSS lock-in?Show answer
3 years.
62.Max maturity in a liquid fund?Show answer
91 days.
63.Return 14%, risk-free 6%, SD 16%. Sharpe?Show answer
0.5.
64.NAV peak ₹80, trough ₹56. Drawdown?Show answer
−30%.
65.Large-cap funds must hold at least 80% in which companies?Show answer
The top 100 by market cap.
66.Why is 1-year return not enough?Show answer
It may reflect luck or one market phase, not consistency.
67.What is an ETF?Show answer
A fund that trades on the exchange like a share.
Level 9: Market capitalizationReview level →
68.Mid-cap rank range?Show answer
101–250.
69.Who publishes the classification list?Show answer
AMFI, every January and July.
70.Which group is typically most volatile?Show answer
Small caps.
71.Why can mid caps grow faster?Show answer
Proven but smaller base, room to multiply.
72.Approx. large-cap cut-off in the July 2026 list?Show answer
About ₹1.06 lakh crore average market cap.
Level 10: IPOsReview level →
73.Lot 45, cap price ₹330. One-lot amount?Show answer
₹14,850.
74.Retail application limit?Show answer
₹2 lakh.
75.In an OFS, who gets the money?Show answer
Selling shareholders.
76.Listing timeline after issue close?Show answer
T+3.
77.Issue ₹400, lists ₹360. Listing gain %?Show answer
−10%.
78.Is GMP regulated?Show answer
No.
79.Anchor lock-in periods?Show answer
50% for 30 days, 50% for 90 days.
80.Where are risks listed in the RHP?Show answer
"Risk Factors".
Level 11: Futures & optionsReview level →
81.Nifty 25,200 × lot 65. Contract value?Show answer
₹16,38,000.
82.Long 1 Nifty future at 25,000, exit 24,850. P&L?Show answer
−₹9,750.
83.Call strike 24,800, premium 160. Breakeven?Show answer
24,960.
84.Put strike 25,000, spot 24,600. Intrinsic value?Show answer
400.
85.Premium 250, intrinsic 100. Time value?Show answer
150.
86.Max loss of a short naked call?Show answer
Unlimited.
87.Bull call spread: buy at 180, sell at 70, strikes 300 apart. Max profit per unit?Show answer
300 − 110 = 190.
88.Which Greek measures time decay?Show answer
Theta.
89.Straddle strike 25,000, total premium 360. Breakevens?Show answer
24,640 and 25,360.
Level 12: Risk & psychologyReview level →
90.Capital ₹2 lakh, risk 1%, entry ₹300, stop ₹285. Shares?Show answer
₹2,000 ÷ ₹15 = 133 shares.
91.Risk ₹15, reward ₹45. R:R?Show answer
1:3.
92.Gain needed after a 60% loss?Show answer
150%.
93.What is revenge trading?Show answer
Trading emotionally to win back losses.
94.What is FOMO?Show answer
Fear Of Missing Out.
95.What should a journal record?Show answer
Reason, entry, stop, target, size, result, emotion, lesson.
Level 13: Tax & rulesReview level →
96.STCG rate on listed equity?Show answer
20% (+ cess).
97.How is intraday income taxed?Show answer
As speculative business income at slab rates.
98.Can F&O losses be set off against salary?Show answer
No.
99.What is UPSI?Show answer
Unpublished Price Sensitive Information.
100.Where do you file a complaint with SEBI?Show answer
SCORES.
20 numerical exercises
Work these out on paper first. Each solution shows every step.
Exercise 1. You have ₹25,000. A stock trades at ₹1,200. How many shares can you buy, and how much is left?Show solution
- ₹25,000 ÷ ₹1,200 = 20.83 → 20 shares.
- 20 × ₹1,200 = ₹24,000.
Answer: 20 shares; ₹1,000 left (before charges).
Exercise 2. You bought 40 shares at ₹350 and sold at ₹392. Find profit and return %.Show solution
- (392 − 350) × 40 = ₹1,680.
- ₹1,680 ÷ ₹14,000 × 100 = 12%.
Answer: ₹1,680 profit; 12% return.
Exercise 3. Average price: 10 shares at ₹500, then 20 at ₹440.Show solution
- Cost = ₹5,000 + ₹8,800 = ₹13,800.
- ÷ 30 shares = ₹460.
Answer: Average ₹460.
Exercise 4. Company profit ₹1,200 cr, 40 cr shares, price ₹600. Find EPS and P/E.Show solution
- EPS = 1,200 ÷ 40 = ₹30.
- P/E = 600 ÷ 30 = 20.
Answer: EPS ₹30; P/E 20.
Exercise 5. Equity ₹5,000 cr; profit ₹750 cr; debt ₹2,000 cr; EBIT ₹1,100 cr. Find ROE, D/E and ROCE.Show solution
- ROE = 750 ÷ 5,000 = 15%.
- D/E = 2,000 ÷ 5,000 = 0.4.
- ROCE = 1,100 ÷ 7,000 ≈ 15.7%.
Answer: ROE 15%; D/E 0.4; ROCE ≈ 15.7%.
Exercise 6. Dividend ₹18; price ₹600. Dividend yield? How much do 75 shares receive?Show solution
- 18 ÷ 600 = 3%.
- 18 × 75 = ₹1,350.
Answer: 3% yield; ₹1,350.
Exercise 7. Revenue grew from ₹2,000 cr to ₹3,500 cr in 5 years. CAGR?Show solution
- (3,500 ÷ 2,000)^(1/5) − 1 = 1.75^0.2 − 1.
- ≈ 1.1184 − 1.
Answer: ≈ 11.8% a year.
Exercise 8. ₹5,000 monthly SIP for 3 months at NAV ₹20, ₹16, ₹25. Units and average cost?Show solution
- 250 + 312.5 + 200 = 762.5 units.
- ₹15,000 ÷ 762.5 ≈ ₹19.67.
Answer: 762.5 units; average ≈ ₹19.67.
Exercise 9. ₹2,00,000 invested for 15 years at 11% a year (compounded). Final value?Show solution
- 2,00,000 × 1.11^15.
- 1.11^15 ≈ 4.785.
Answer: ≈ ₹9,57,000.
Exercise 10. Fund A: TER 1.6%, Fund B: TER 0.4%; both earn 12% gross. ₹1 lakh for 10 years: difference?Show solution
- A: 1.104^10 ≈ 2.689 → ₹2,68,900.
- B: 1.116^10 ≈ 2.996 → ₹2,99,600.
Answer: About ₹30,700 more in B.
Exercise 11. Intraday: buy 200 shares at ₹480 with 20% margin, sell at ₹472. Loss and % of margin?Show solution
- Loss = 8 × 200 = ₹1,600.
- Margin = 20% × ₹96,000 = ₹19,200.
- 1,600 ÷ 19,200 ≈ 8.3%.
Answer: ₹1,600 loss ≈ 8.3% of margin (before charges).
Exercise 12. Position sizing: capital ₹80,000, risk 1.5%, entry ₹640, stop ₹616.Show solution
- Risk = ₹1,200.
- Per share = ₹24.
- 1,200 ÷ 24 = 50.
Answer: 50 shares (₹32,000 position).
Exercise 13. Entry ₹220, stop ₹210, target ₹250. R:R? If you win 35% of such trades, are you profitable per 100 trades?Show solution
- Risk 10, reward 30 → 1:3.
- 35 × 30 − 65 × 10 = 1,050 − 650 = +400 per share.
Answer: 1:3; yes, +₹400 per share over 100 trades (before costs).
Exercise 14. IPO band ₹540–₹570, lot 26. Max retail lots and amount?Show solution
- One lot = 26 × 570 = ₹14,820.
- 2,00,000 ÷ 14,820 = 13.5 → 13 lots.
- 13 × 14,820 = ₹1,92,660.
Answer: 13 lots; ₹1,92,660.
Exercise 15. IPO: issue ₹450, post-issue shares 30 cr, FY profit ₹540 cr. Market cap and P/E?Show solution
- Market cap = 450 × 30 cr = ₹13,500 cr.
- EPS = 540 ÷ 30 = ₹18 → P/E = 25.
Answer: ₹13,500 cr; P/E 25.
Exercise 16. Nifty futures: long 2 lots (lot 65) at 24,900; exit 25,180. P&L?Show solution
- 280 × 65 × 2.
Answer: +₹36,400 (before charges).
Exercise 17. Long 25,100 CE at 140 (lot 65). Expiry at 25,400. Profit?Show solution
- Intrinsic = 300.
- (300 − 140) × 65 = ₹10,400.
Answer: +₹10,400.
Exercise 18. Iron condor: credit 90, wings 200 wide (lot 65). Max profit and max loss?Show solution
- Max profit = 90 × 65 = ₹5,850.
- Max loss = (200 − 90) × 65 = ₹7,150.
Answer: ₹5,850 profit; ₹7,150 loss.
Exercise 19. STCG and LTCG in one year: STCG ₹40,000; LTCG ₹1,60,000. Tax (before cess)?Show solution
- STCG: 20% × 40,000 = ₹8,000.
- LTCG: 12.5% × (1,60,000 − 1,25,000) = ₹4,375.
Answer: ₹12,375 (+ 4% cess).
Exercise 20. Delivery round trip of ₹50,000 each way. Estimate STT and stamp duty.Show solution
- STT = 0.1% × ₹1,00,000 = ₹100.
- Stamp duty = 0.015% × ₹50,000 = ₹7.50.
Answer: ≈ ₹107.50 plus exchange fees, GST and DP charge.