PFM - Ch.4 Stock Trading as an investment

Compared with the Main Board’s basic listing requirements,

- the operating history requirement for Growth Enterprise Market applicants is

    (I)    .

-the market capitalization requirement for Growth Enterprise Market applicants is     (II)    . (66%)

• (i) looser

  (ii) Stricter

• (i) stricter

  (ii) looser

• (i) stricter

  (ii) Stricter

• (i) looser

  (ii) looser

Which of the following statements about the Hang Seng Index is not correct? (62%)

• Its sub-indexes are: Finance, Utilities, Properties, and Commerce and Industry.

• It measure the performance of the largest and most liquid companies listed in Hong Kong.

• It includes 50 stocks listed on the Growth Enterprise Market.

• It serves as a benchmark of the general performance of the Hong Kong stock market

The following task are the basic listing requirements for new applicants to list their stocks on the Main Board of the Stock Exchange of Hong Kong except            . (56%)

• Size of workforce

• Amount of cash flow

• History of operation

• Profit attributable to shareholders

Which of the following will affect the share price of a listed company selling motorcars? (57%)

(1)       Fuel price

(2)       Interest rate

(3)       Divided policy of the company

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1) (2) and (3)

If the Hang Seng Index (HSI) rose by 10% during the past month, it means that _____________ during the past month. (64%)

 

(1) the ‘HIS-Commerce & Industry’ rose by 10%

(2) the turnover of the HSI constituent stocks increased by 10%

(3) the market prices of the HIS constituent stocks rose in general

• (1) only

• (2) only

• (3) only

• (2) and (3) only

In the basic listing requirements of the Growth Enterprise Market for new applicants, there is no minimum requirement relating to ______________. (30%)

• cash flow

• profit

• operating history

• market capitalization

Which of the following statements about the basic requirements for new applicants of listing on the Main Board is/are correct? (65%)

 

(1)   Applicants must fulfil the requirement in operating history.

(2)   Applicants must be multinational corporations.

(3)   Applicants must meet one of the following criteria: the profit test, the market capitalization/revenue test, or the market capitalization/revenue/cash flow test.

• (1) only

• (2) only

• (1) and (3) only

• (1), (2) and (3)

Which of the following statements about the Hang Seng Index is correct? (62%)

Hints：PP 2019

• It is composed of 60 constituent stocks.

• All of its constituent stocks are listed on the main board of the Stock Exchange of Hong Kong.

• It reflects the performance of the stock market in the Asia-pacific region.

• ‘Information technology’ is one of the four sub-indexes.

Which of the following descriptions of the Hang Seng Index is/are correct? (57%)

 

(1) ‘Utilities’ is a sub-index of the Hang Seng index.

(2) It indicates the dividend policies of the companies of the constituent stocks.

(3) It is a platform for businesses to raise capital.

• (1) only

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

Which of the following descriptions of the Main Board and GEM (previously known as Growth Enterprise Market) are correct? (19%)

 

(1) More companies are listed on the Main Board than on GEM.

(2) ‘Management continuity for at least the three preceding financial years’ is one of the basic listing requirements for applicants to list on the Main Board.

(3) The Main Board was set up for large and established companies.

• (1) and (2) only

• (1) and (3) only

• (2) and (3) only

• (1) (2) and (3)