Free practice set

NCFM Beginner practice questions with answers

This is a free set of 20 original practice questions on topics that overlap with NCFM Financial Markets: A Beginner's Module. It is NSE Academy's entry-level module for people who are new to financial markets.

PaisaTrade is not affiliated with NISM, NSE Academy or SEBI. These are our own practice questions, not official exam questions, and they do not cover the full syllabus. Check the official website for the current syllabus, test pattern and fees.

Topic areas covered here

  • From the course

    Stocks 101

    • Primary and secondary markets
    • Trading, clearing and settlement
    • Market participants and indices
  • From the course

    Mutual Funds & SIP

    • Mutual funds as an investment route
  • From the course

    IPO Investing Guide

    • Primary market and public issues
    • Book building and allotment
  • From the course

    Tax Basics

    • Tax on capital gains and dividends
  • From the course

    Zero to Trader

    • Order types and trading
    • Clearing and settlement
  • From the course

    Scam Shield: Tips, Finfluencers & Frauds

    • Investor protection and SEBI's role

Practice questions

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  1. Question 1

    When you buy a share of a listed company, what do you own?

  2. Question 2

    Which account holds your shares?

  3. Question 3

    A share trades at ₹600 and its EPS is ₹30. What is the P/E?

  4. Question 4

    What sets the price you see on screen?

  5. Question 5

    What should you understand first about a company?

  6. Question 6

    After a 50% loss, what gain do you need to break even?

  7. Question 7

    What do you receive when you invest in a mutual fund?

  8. Question 8

    Which fund type can usually grow most over long periods but swing the most?

  9. Question 9

    A SIP invests…

  10. Question 10

    How long is the ELSS lock-in?

  11. Question 11

    What is the main difference between direct and regular plans?

  12. Question 12

    What does a SIP mandate do?

  13. Question 13

    In an offer for sale, who receives the money?

  14. Question 14

    Which section shows how IPO money will be used?

  15. Question 15

    What happens to your money with ASBA?

  16. Question 16

    Who regulates the grey market?

  17. Question 17

    How is a new listing's opening price set?

  18. Question 18

    Which combination is the strongest warning?

  19. Question 19

    Shares held 10 months are sold at a gain. What is the gain called?

  20. Question 20

    Dividends from shares are taxed…