WorksheetsFIN 346 Chapter 3
Total questions: 25
Worksheet time: 13mins
Which of the following is NOT a function of Bursa Malaysia as a stock exchange?
Providing a platform for buying and selling securities
Regulating the issuance of new currency notes
Facilitating capital raising for companies
Ensuring transparency and fair market practices
In the primary market, what is the main purpose for companies to issue securities?
To allow public trading of shares
To increase market volatility
To raise capital for business expansion
To establish partnerships with banks
How does the secondary market benefit investors?
By offering a platform to trade existing securities
By creating a safe environment free from market fluctuations
By providing direct investment options in private companies
By avoiding regulatory oversight
Why might a company choose to list on Bursa Malaysia?
To become eligible for government grants
o increase its private shareholder base
To raise capital and enhance corporate reputation
To avoid public reporting requirements
Which of the following is the main index of Bursa Malaysia that tracks the performance of the top 30 companies?
FTSE Bursa Malaysia KLCI
Dow Jones Industrial Average
S&P 500 Index
Nikkei 225
In Malaysia, which market allows investors to buy and sell securities that have already been issued?
Primary Market
Secondary Market
Futures Market
OTC Market
What role does Bursa Malaysia play in the Malaysian economy?
Acts as a direct lender to corporations
Supports economic growth by facilitating capital raising and investment
Collects taxes on all trading activities
Controls monetary policy
What type of services does Bursa Malaysia Berhad provide through its subsidiaries?
Only trading services
Trading, clearing, settlement, and depository services
Auditing and compliance services
Loan and mortgage services
Which of the following acts governs the Malaysian capital market?
Malaysian Trade Act 2005
Securities Exchange Act 2008
Companies Act 2010
Capital Markets and Services Act 2007
What is the primary purpose of the secondary market on Bursa Malaysia?
To issue new securities
To provide loans to companies
To regulate public companies
To allow trading of existing securities
Which of these is NOT a reason for a company to list on Bursa Malaysia?
To improve company visibility and profile
To avoid public disclosure requirements
To raise additional funds
To enhance confidence among investors
What does FBM KLCI stand for?
Financial Banking Market Kuala Lumpur Composite Index
Federal Business Market Kuala Lumpur Composite Index
Financial Burgeoning Market Kuala Lumpur Composite Index
FTSE Bursa Malaysia Kuala Lumpur Composite Index
Which method is used to calculate the FBM KLCI?
Arithmetic average of stock prices
Weighted average based on outstanding shares
Simple average of all Geometric mean of selected stocksshares
Geometric mean of selected stocks
Why is interest rate movement a factor in stock market performance?
It influences alternative investment attractiveness
It decreases company profits
It directly increases stock market growth
It has no effect on stock prices
What does IPO stand for in stock market terms?
Initial Public Offering
Internal Private Organization
International Public Operation
Internal Profit Optimization
A stable political environment generally affects the stock market by:
Discouraging local investment
Reducing the need for foreign investment
Promoting industrial growth and stock performance
Limiting the capital market's regulatory scope
Which of the following is a penalty that Bursa Malaysia may impose for breach of listing requirements?
Company imprisonment
Fines exceeding the company’s market value
Forced merger with another company
Suspension of trading
Which factor relates to Bursa Malaysia’s policy on clarifying rumors and reports?
Ignoring baseless rumors
Ensuring fair trading practices
Clarifying material information when rumors impact trading
Releasing information only through closed channels
What is the primary purpose of the primary market on Bursa Malaysia?
To offer trading of existing securities
To regulate corporate practices
To allow companies to raise capital by issuing new securities
To conduct investor education programs
The Capital Markets and Services Act 2007 is primarily designed to:
Set regulations for securities trading in Malaysia
Oversee banking activities in Malaysia
Create lending standards for financial institutions
Manage personal finance laws
What does Bursa Malaysia require of a company when unusual market action takes place in its securities?
To adjust stock prices manually
To release information on trading activities
To investigate and address rumors if necessary
To avoid public statements on market conditions
Which of these is NOT a benefit of a company undergoing an IPO?
Enlarging its equity base
Creating public exposure
Increasing control over market prices
Gaining cheaper access to capital
What is the function of Bursa Malaysia's policy on insider trading?
To allow limited public disclosures before trading starts
To enable senior employees to act on private company information
To allow early access to information for institutional investors
To prevent unfair advantage based on undisclosed material information
Which of the following factors is likely to increase the performance of a stock market?
High inflation rates
Rising interest rates
Strong economic growth
High national debt levels
A company listing on the ACE Market in Malaysia is typically characterized by:
Being a newly established or fast-growing company
Meeting the same requirements as the Main Market
Aiming solely for large institutional investors
Operating primarily in the real estate sector
