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Part 1 : eFPMR Preparation Training

Total questions: 10

Worksheet time: 20mins

Name
Class
Date
1.

It brings together entities, which intend to raise money through the issue of new securities to individuals or organisations that seek to invest their savings or surplus funds.


Which best describe the above?

a)

Stock Market

b)

Bond Market

c)

Derivatives Market

d)

Money Market

2.

Which of the following are the issuers of bonds in Malaysia:


i. Malaysian Government Securities

ii. Bursa Malaysia Sdn Bhd

iii. Bank Negara Malaysia

iv. Khazanah Nasional

a)

i, ii dan iii

b)

i, ii dan iv

c)

i, iii dan iv

d)

ii, iii, dan iv

3.

Which of the followings are traded in Bursa Malaysia Derivatives Market :

a)

Equities

b)

Bonds

c)

Futures

d)

Call Warrants

4.

_______ activities allow corporations to raise capital by selling stock to investors.

a)

NYSE

b)

Secondary market

c)

Primary market

d)

Money market

e)

Centralized Nasdaq

5.

Which of the following describes a securities offering in which an existing shareholder sells a large block of stock to new investor?

a)

primary offering

b)

equity carve-out

c)

secondary offering

d)

negotiated offering

e)

none of the above

6.

Lim purchased iSaham Bhd shares for RM50. Later, she sold them in the secondary market for RM65. Who received the profits from this sale?

a)

Lim

b)

the exchange on which iSaham shares are traded

c)

the investor who purchased the shares

d)

no new cash flow was generated, so there was no profit

e)

iSaham Bhd

7.

Which of the following is an advantage of an IPO to an entrepreneur?

a)

New capital for the company

b)

Publicly traded stock for use in acquisitions

c)

Listed stock for use as compensation vehicle

d)

Personal wealth and liquidity

e)

All of the above

8.

Which of the following statements regarding financial markets and securities is the most accurate?

a)

Debt represents an ownership interest in the firm

b)

Trades of securities in the secondary market raise additional funds for corporations

c)

Trades in the primary market are between issuing corporations and investors

d)

More stock than bond transactions occur in the primary market

e)

U.S. security issuers account for only a small portion of worldwide issues

9.

The stock market is made up of two markets, i.e. the primary market and secondary market. The secondary market is a central market place provided by the stock exchange:

a)

which allows a company to raise initial capital

b)

where people can sell and buy securities previously issued

c)

to issue right issue and other securities

d)

to issue bonds and options

10.

Which of the following are Malaysia's sinonym indicator?


i. GDP

ii. Foreign Reserve

iii. Unemployment Rate

iv. Inflation Rate

a)

i, ii and iii

b)

ii, iii, and iv

c)

i, iii, and iv

d)

All of the above