What is the market capitalization threshold for a company to be classified as a small-cap in India?

Rs. 100 Crore Rs. 250 Crore Rs. 500 Crore Rs. 1000 Crore

What characteristic of small-cap stocks makes them potentially suitable for investors seeking high returns?

Low volatility Government backing Fixed dividends Potential for high growth

Which of the following is a significant risk associated with small-cap stocks?

Guaranteed returns Low expense ratios High volatility Immunity to market fluctuations

What investment strategy can help mitigate the risks associated with small-cap stocks?

Concentrating investments in a single stock Short-term trading based on daily market fluctuations Long-term investment horizon Investing only during market peaks

How are the returns from small-cap stocks taxed in India if the shares are held for less than a year?

Tax-free Long-term capital gain tax at 10% Short-term capital gain tax at 15% Wealth tax at 20%

Which of the following is NOT a reason to consider investing in small-cap stocks?

Potential to benefit from the growth of smaller companies Opportunity to buy stocks at potentially lower prices Guaranteed high returns with minimal risk Access to stocks less influenced by large financial institutions

What advantage do small investors have over institutional investors in the small-cap market?

Access to insider information Ability to influence stock prices Opportunity to buy stocks at fairer prices Lower brokerage fees

What makes small-cap companies potentially attractive for growth-oriented investors?

Established market presence Guaranteed dividends Higher organic growth rate compared to large-cap companies Low risk of bankruptcy

Which of the following is a risk associated with small-cap stocks due to their limited trading volume?

High dividend payouts Lower expense ratios Difficulty in selling shares quickly Guaranteed returns

Which investment option is considered less risky than small-cap stocks?

Venture capital funds Hedge funds Large-cap stocks Cryptocurrencies