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Capital Market > Chapter 3 > Flashcards

Chapter 3 Flashcards

1
Q

The two exchanges of the philippines before

A

Manila stock exchange established in 1927
makati stock exchange in 1963

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2
Q

When does the 2 exchanges agreed to a functional unification by a computer link-up, operating a one pricw, one market system

A

march 1994

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3
Q

The PSE organizational structure

A

The president will report to the board of directors.
Board of directors comprised of seven trading participants and eight independent individuals

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4
Q

The pse is divided into seven major divisions

A

Finance and investment decision
market operations decision
technology division
capital markets development decision
issuer regulation division
corporate services division
market regulation division

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5
Q

Other offices include

A

Office of the general counsel
corporate governance office

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6
Q

It is a self-regulatory organization, a status granted by sec in 1998

A

Pse

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7
Q

Being an , it is empowered to police its own ranks and make its own rules

A

SRO

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8
Q

This regularly audit the operations of member firms for net capital and customer protection examination and sales practice and business conduct compliance

A

PSE

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9
Q

Is the excess of liquid assets over the liabilities of brokers

A

net capital rule

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10
Q

It shows the capability of the broker to promptly settle customer claims and other obligations

A

Net capital rule

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11
Q

This ensures that the broker’s sales practices and business conduct confirms with the customer first policy rule whereby brokers orders must surrender priority to clients consistent with the securities regulation code

A

PSE

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12
Q

This detects breaches of trading rules market manipulation or inside their trading to ensure a fair efficient and transparent trading and the exchange

A

Market regulation division

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13
Q

Market regulation division is responsible for setting up

A

Price freeze rule and alert levels

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14
Q

Alert levels are as follows

A

Cumulative price alert
cumulative volume alert
run-off alert
share concentration alert
significant trading activity

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15
Q

To describe issues deviating beyond the variance limit of cumulative price

A

Cumulative price alert

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16
Q

To lease issues deviating beyond the variance limit of cumulative volume

A

Cumulative volume alert

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17
Q

to list all significant trading activity done proximately a few minutes prior to run of .

A

Run-off alert

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18
Q

List brokers with unusual concentration of trading activity

A

Share concentration alert

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19
Q

List issues with unusually significant market activity based on the company’s statistical average trading volume

A

Significant trading activity

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20
Q

SIPF

A

Securities Investor Protection Fund

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21
Q

This is envisioned to protect the investing public against losses in case of fraud failure or insolvency of brokers and dealers who are members of the exchange

A

SIPF

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22
Q

It is previously called the pse composite index

A

Market indices

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23
Q

The six sector indices of pse

A

Financials
industrial
holding firms
property
services
mining and oil

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24
Q

It is a basket of selected 30 stocks that mimicked the overall performance of the stock market

A

PSEi

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25
Q

This is computed using volume weighted average price of a listed stock during a particular review period

A

Free float market capitalization

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26
Q

It is a company’s first offering of shares to the general public

A

Initial public offering (IPO)

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27
Q

It usually involves new primary common shares and sometime secondary shares

A

IPO

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28
Q

Companies elect to do this, it is the system by buying in simply reorganizing a listed company, in effect by passing the ipo process saving time and money

A

backdoor listing

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29
Q

Is instrumental in reviewing the organization of the company formulating business plans evaluating the company’s viability and designing the terms of offering among others

A

Underwriter

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30
Q

It is a printed statement containing all material facts about the applicant operations, example risk factors, use of proceeds, terms of offering, financial statements, and projections

A

Prospectus

31
Q

Another way to list shares in the pse is via

A

Listing by way of introduction

32
Q

Trading is carried out through the use of this

A

Pse trade workstation

33
Q

This is a fully automated screen-based system that allows continuous order matching based on price account type - time priority

A

Pse trade workstation

34
Q

ROSS

A

registry of scrip less securities

35
Q

Settlement of transactions is scrip less and it is based on the

A

Book entry settlement system (bes)

36
Q

SCCP

A

Securities Clearing Corporation of the Philippines

37
Q

This ensures payment from the buyer and shares of the seller are deposited accordingly by brokers

A

SCCP

38
Q

PCD

A

Philippine Central Depository

39
Q

custodian/depository of scrip less shares

A

PCD

40
Q

Two trading floors of the exchange

A

Pse center in ortigas
pse plaza in makati

41
Q

It is done by board lot or round lot system

A

Normal equity market trading

42
Q

It determines the minimum number of share one can purchase or sell at a specific price range

A

Board lot table

43
Q

This is done with volume and quantity last than the defined board lot

A

odd lot market trading

44
Q

The types of orders that pse trade workstations except

A

day order
GTC order
GTD order
GTW order
sliding validity
FAK order

45
Q

Good for a particular day

A

day order

46
Q

orders are good until cancelled by the user until this reach the set expiration date of the instrument

A

GTC order

47
Q

Orders remain valid until the date specified when the order is entered

A

GTD order

48
Q

Orders are valid for 7 calendar days from the time of posting

A

GTW order

49
Q

Good for 360 calendar day

A

Sliding validity

50
Q

Are execute and eliminate orders with any remaining and executed portion eliminated

A

FAK order

51
Q

Lot sizes can take the form of

A

Regular order
odd lot order

52
Q

Conforms with the minimum shares based on price shown in table 3.5

A

Regular order

53
Q

Does not conform with table 3.5

A

odd lot order

54
Q

Most pse trades will fall under the following order types

A

Limit order
market order
market on opening or closing order
market to limit order
stop loss order
stop limit order

55
Q

An order to buy or sell securities at a specified volume and price with an expected potion added to the central book order at the entered limit price

A

Limit order

56
Q

An order to buy or sell securities without a specified price executed at the best bid offer price or last traded price, whichever is better

A

Market order

57
Q

An order to buy or sell securities at the end a captive opening or closing price

A

Market on opening or closing order

58
Q

Disorder has no specific price and accepted only during pre open and pre close .

A

Market on opening or closing order

59
Q

An order to immediately buy or sell securities at the best possible price between the best bid offer and the last traded price with the an executed potion automatically transform into a limited or at the executed price

A

Market to limit order

60
Q

An order which stays inactive until a trade occurs at a predetermined trigger price or butter and immediately treated as a market order

A

Stop loss order

61
Q

An order which stays inactive until a trade occurs at to predetermined prices namely the trigger price and the limit price

A

Stop limit order

62
Q

Other order types include

A

Volume qualifiers with minimum order quantity and iceberg order

63
Q

When a broker has one client buying in another selling at the same price transaction is immediately done via

A

cross sale

64
Q

It is the sale of securities not owned by the seller with the hope of buying back the same security at a lower price to lock in profits

A

Short sale

65
Q

They deliver borrowed certificates first and later on they purchase equity to cover the borrowed certificate

A

Short sellers

66
Q

The eligible for short selling in accordance with the following criteria

A

Market capitalization of at least 10 billion
tradability

67
Q

This rule states that no trading participant shall use the facility of the exchange to affect a short sale of any security and less the transaction is

A

Up Tick Rule

68
Q

It is the purchase of stocks partly financed by the broker’s with a purchase stocks as collateral

A

Margin trading

69
Q

These are the percentage of the bonds face value and no price fluctuations are necessary

A

Price quotes

70
Q

Occur when orders with a minimum transaction value of 20 million are transacted at a rated price with a positive negative 5% from the last adjusted closing price of the security to be traded

A

ordinary block sales

71
Q

LACP

A

Last adjusted closing price

72
Q

the PSE establishes this based on price and volume for all companies listed so as to monitor and detect unusual movements of share

A

alert levels

73
Q

involve a minimum transaction value of 50 million, approved by the PSE prior to execution, and maybe priced beyond positive negative 5% from the LACP

A

Special block sales

Capital Market (3 decks)

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