Chapter 1

Question 1

The 3 shares prices

Answer 1

1. Bid to buy price ( the buyers price )
2. The offer to sell price ( the sellers price)
3. Market price (the last trade price)

Question 2

The bid to buy price(buyers price)

Answer 2

He highest price buyers are prepared to pay for a share

Question 3

The offer to sell price ( sellers price)

Answer 3

Lowest price sellers are prepared to sell their shares

Question 4

The market price (last traded price)

Answer 4

Price at which the last transaction took place

Question 5

IPO

Answer 5

Initial public offering

Question 6

Pre-listing statement

Answer 6

Source of information about the proposed listing ( not an invitation to buy shares)

Question 7

Stags make profits from

Answer 7

New listing, and rights issue

Question 8

Mandatory corporate actions

Answer 8

Dividends, capitalization, subdivisions

Question 9

Voluntary corporate actions

Answer 9

Rights issues, share buy backs

Question 10

JSE settlement cycle

Answer 10

T+3

Question 11

Announcement dates

Answer 11

At least 13 days before the record date

Question 12

Record date

Answer 12

Alway son a Friday

Question 13

Payment date

Answer 13

Date dividends are paid to shareholder s

Question 14

Start of ex trading day until the payment date

Answer 14

Ex dividend period ( can buy shares but not entitled to a dividend )

Question 15

Subdivision: stock split purpose

Answer 15

To lower the market price of shares and make shares more affordable

Question 16

Opposite of stock split

Answer 16

Consolidation

Question 17

No de materialization

Answer 17

Starts on the same day as ex rights and ends on the record date