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Worksheets

Virtual Social Hour

Total questions: 20

Worksheet time: 20mins

Name
Class
Date
1.

The IPO allows the company ‘offering' their shares to tap a large pool of investors to provide it with capital for future growth, repayment of debt or even for working capital.

a)

TRUE

b)

FALSE

2.

What is the name of the company who can sell small packets of stock for no brokerage fees that all proceeds go to charity?

a)

Stock giver

b)

Charity give away

c)

Share giver

d)

Sharegift

3.

Which statement is correct for a Share split?

a)

A share split is the multiplication of shares into a larger number of shares each with a correspondingly lower market value.

b)

A share split is the subdivision of shares into a larger number of shares each with a correspondingly lower market value.

c)

A share split is the multiplication of shares into a larger number of shares each with a correspondingly larger market value.

d)

A share split is the subdivision of shares into a smaller number of shares with a marginally higher value

4.

What does IPO stand for?

a)

Internal Public Offer

b)

Initiating Process Offer

c)

Initial Public Offering

d)

Internal Private Offer

5.

What is a take over?

a)

When someone buys another persons holdings

b)

A term used when there is a change of management

c)

When a company makes a bid for another companies shares

d)

When a company sells all its assets

6.

What is an unmarketable parcel?

a)

a trade that was required to be purged

b)

a trade placed for a value not equal to those of a specific holding

c)

a trade placed with a value less than $500

d)

a trade placed outside of 3 points of the market value

7.

True or False? If the takeover has reached the unconditional level (90% or more), the remaining investors (who have not responded to the offer) no longer have any choice over whether they will accept or reject the takeover offer.

a)

TRUE

b)

FALSE

8.

Which description below is correct?

a)

A corporate action is an event initiated by a company or corporation that brings or could bring an actual change to the securities-equity or debt-issued by the company.

b)

A corporate action is an event initiated by shareholders that brings or could bring an actual change to management of a company

c)

A corporate action is an event initiated by a government that brings or could bring an actual change to the company structure- impacting share holders

d)

A corporate action is an event initiated by a company or corporation that needs to be agreed upon by the respective government

9.

When responding to corporate actions - where do you send the task when there is a payment to be made?

a)

Scrip

b)

Client services

c)

Cash Account

d)

Business Operations

10.

Which of the following is type of takeover?

a)

On Market bid

b)

Below Market bid

c)

Above Market bid

11.

When responding to corporate actions - where do you send the task when there is anything other than a payment to be made?

a)

Scrip

b)

Client Services

c)

Business Operations

d)

Cash Account

12.

What does SPP stand for in corporate actions processed by Scrip?

a)

Standard Purchase Plan

b)

Stock Person Purchase

c)

Share Purchase Plan

d)

Share Problem Plan

13.

When does is a trading amount less than $500 acceptable?

a)

When someone purchases through SRN

b)

When someone already owns a portion of the selected stock

c)

When someone appears fraudulent

d)

If someone doesn't have enough money to pay for the shares

14.

True or False: Buys backs are the purchase by an issuer of its own shares. When shares are bought back by the Issuer they are doubled and value increases. Hence doubling the number of shares on a company's register.

a)

TRUE

b)

FALSE

15.

What is the record date for dividends?

a)

When all details need to be provided to the share registry

b)

The account reconciliation date

c)

Determining the payment and ownership of stock

d)

The actual payment date

16.

If someone purchased shares for a company on the ex dividend date, are they likely to be eligible for the dividend payment?

a)

YES

b)

NO

17.

True or False? During a demerger, clients will receive shares in the new demerge company at no charge. The effect on this however, is that their existing shares would go down in value and the difference would be the market price of the demerged share.

a)

TRUE

b)

FALSE

18.

What is de-listing?

a)

The removal of a company's shares from listing on the stock exchange.

b)

When a company loses its SEO ranking

c)

The removal of a company's name from the telephone and online number registries

d)

When a company is classified as bankrupt

19.

A good site for checking de-listed companies is which of the below?

20.

As an ASX trading rule, clients may only take up to $10000 worth of share purchase plans per year

a)

TRUE

b)

FALSE