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SIDC eFPMR_1

Total questions: 15

Worksheet time: 30mins

Name
Class
Date
1.

The Capital Market is generally divided into the following broad markets:

i. bond market

ii. stock market

iii. wholesale market

iv. derivatives market

a)

(i) and (iii) only

b)

(ii) and (iv) only

c)

(i), (ii) and (iv) only

d)

All of the above

2.

_________ is an individual or entity having a surplus of money who participate in the capital market in the hope of obtaining returns on their investment.

a)

An issuer

b)

An investor

c)

An intermediary

d)

An industry association

3.

Which of the following are intermediaries for the Malaysian capital market?

i. A clearing institution

ii. A stockbroking company

iii. A fund management company

iv. Bursa Malaysia Securities Berhad

a)

(i) and (iv) only

b)

(ii) and (iii) only

c)

(i), (ii) and (iii) only

d)

All of the above

4.

The following products are typically trade in the Malaysian capital market EXCEPT:

a)

Shares

b)

Unit Trust

c)

Insurance

d)

Futures

5.

Which of the following instruments is a debt instrument?

a)

Bond

b)

Stock

c)

Unit Trust

d)

Derivatives

6.

- This market allows a company or other types of entities to raise initial capital

- This is usually done by a company issuing a prospectus through an underwriting stockbroking company

Which of the following capital market components is described in the above statement?

a)

Bond Market

b)

Primary Market

c)

Secondary Market

d)

Derivatives Market

7.

Which of the following transactions are conducted in the secondary market?

a)

When a rights issues exercise is being undertaken by Pohan Corporation Berhad

b)

When a company placed out one million new ordinary shares to XYZ Fund Management

c)

When Fazli sold his shares in ABC Berhad which is traded on Bursa Malaysia Securities Berhad trough his stockbroker

d)

When Syarikat Pembinaan Setia Berhad, a public listed company, issues shares to its shareholders via a bonus issue exercise

8.

The following are the basic prohibitions that will revoke the Shariah compliant status of a product, EXCEPT:

a)

Usury

b)

Hoarding

c)

Uncertainty

d)

Charging high fees

9.

A frontline regulator that is responsible for the Malaysian capital market with a duty to maintain a fair and orderly market for the securities and derivatives that are traded through its facilities. Which of the following is Entity X?

a)

Bursa Malaysia Berhad

b)

Securities Commission Malaysia

c)

Association of Stockbrokers Malaysia

d)

Bursa Malaysia Depository Sdn Bhd

10.

The following statements CORRECTLY describes the functions of the Securities Commission Malaysia, EXCEPT:

a)

Licenses persons engaged in regulated activities

b)

Regulates the take-over and mergers of companies

c)

Regulate all matters relating to unit trust schemes

d)

Approving authority for the opening of savings account

11.

Which of the following are functions of Bursa Malaysia Securities Berhad?

i. Governs the conduct of its Participants

ii. Responsible for surveillance of the stock market

iii. Responsible for enforcement of its Listing Requirements

iv. Regulates the takeover and merger activities of companies

a)

(i) and (iv) only

b)

(i), (ii) and (iii) only

c)

(ii), (iii) and (iv) only

d)

All of the above

12.

Who are the participants of the derivatives market?

i. Hedgers

ii. Borrowers

iii. Speculator

iv. Arbitrageurs

a)

(i) and (ii) only

b)

(i) and (iii) only

c)

(ii) and (iv) only

d)

(i), (iii) and (iv) only

13.

Which of the following capital market products are defined as securities under the Capital Market Services Act 2007?

i. Standardized derivatives

ii. Shares in a body corporate

iii. Units in a unit trust scheme

iv. Stocks issued by any government

a)

(i) and (iii) only

b)

(ii) and (iv) only

c)

(i), (ii) and (iii) only

d)

(ii), (iii) and (iv) only

14.

Which of the following statements best described a Participating Organization (PO)

a)

The issuer of securities traded on the Exchange

b)

The shareholders who own shares of stock of a publicity listed company

c)

A custodian of listed shares of stock that are traded on the stock exchange

d)

A licensed trading participant that is entitled to carry out the business of trading in securities on Bursa Malaysia Securities

15.

All of the following activities are regulated by the Securities Commission Malaysia EXCEPT:

a)

Fund Management

b)

Dealing in Securities

c)

Dealing in Money Lending

d)

Advising on Corporate Finance