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Capital Market > Chapter 4 > Flashcards

Chapter 4 Flashcards

1
Q

argues that failures in financial markets have come about because of poorly designed incentive structures, inadequate competition, and inadequate transparency.

A

Joseph Stiglitz

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2
Q

Agencies involved to ensure the efficient working of the capital market

A

Securities and Exchange Commission
Insurance Commission
Bangko Sentral ng Pilipinas

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3
Q

What does SEC Regualtes

A

the Philippine Stock Exchange (PSE),
the Fixed Income Exchange and
Mutual funds.

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4
Q

regulates insurance firms and their products.

A

The Insurance Commission

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5
Q

regulates banks of all stripes, currency trading, and bank originated products and services.

A

Bangko Sentral ng Pilipinas

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6
Q

UITFs Meaning

A

Unit investment trust Funds

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7
Q

is a government agency created by law under Commonwealth Act No. 83 (the securities act) in 1936.

A

Securities and exchaneg commission

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8
Q

SEC primary task is to enforce compliance Its primary task is to enforce compliance with the following:

A

a. The Corporation Code
b. The Securities Regulation Code
c. The Investment Company Act
d. The Investment Houses Law
e. Financing Company Act
f. Securitization Act of 2004
g. Personal Equity and Retirement Account (PERA) Act of 2008

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9
Q

REIT Meaning

A

Real estate Investment Trust

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10
Q

AMLA Meaning

A

Anti Money Laundering Act

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11
Q

From a capital market investor’s point of view, the provisions of the Corporation code of the Philippines that are important in the creation of securities are:

A

Capital Stock
Treasury Stock
Pre-emptive Rights
Dividends Distribution
Merger

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12
Q

No corporation shall increase or decrease its capital stock or incur, create or increase any bonded indebtedness unless approved by a

A

majority vote of the board of directors and by a two-thirds (2/3) of the outstanding capital stock at a stockholders’ meeting duly called for the purpose.

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13
Q

are shares of stock which have been issued and fully paid for, but subsequently reacquired by the issuing corporation by purchase, redemption, donation or through some other lawful means.

A

Treasury Stocks

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14
Q

Such shares may again be disposed of for a reasonable price fixed by the board of directors.

A

Treasury Stocks

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15
Q

SRC meaning

A

Securities Regulation Code

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16
Q

is the law that regulates the sale of securities and securities market professionals.

A

Securities regulation Code

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17
Q

It was signed into law on July 19, 2000 and became effective on August 8, 2000.

A

SRC

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18
Q

RSA Meaning

A

Revised Securities Act

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19
Q

IRR Meaning

A

Implementing Rules and Regulations

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20
Q

SBL Meaning

A

Securities borrwing and Lendnig

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21
Q

MSLA Meaning

A

Master securities lending agreement

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22
Q

SLAA Meaning

A

securities lending authorization agreements

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23
Q

is the practice of formerly unlisted firms to purchase a majority control of a dormant or inactive firm that is listed

A

Backdoor Listing

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24
Q

PERA Meaning

A

Personal Equity and retirement Account

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25
Q

as amended by RA 9194 was enacted to curb the flow and legitimization of illegally sourced or acquired funds.

A

Anti money laundering act of 2001

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26
Q

AMLC Meaning

A

Anti-Money Laundering Council

27
Q

The AMLC is composed of ?

A

Heads of the BSP, the Insurance Commission and the SEC

28
Q

Who is the chairperson of the AMLC

A

BSP Governor

29
Q

has the authority to investigate complaints, referrals, covered, and or suspicious transaction reports.

A

AMLC

30
Q

What are the highligts of Anti-money laundering act

A

AMLC
Unlawful Acts
Covered transactions

31
Q

Rule 4 of the AMLA Implementing Rules and Regulations (IRR) likewise contains an extensive discussion of the offenses called

A

Predicate crimes and the penalties thereto.

32
Q

ICA Meaning

A

Investment Company Act

33
Q

is the law that regulates investment companies.

A

Investment Company Act

34
Q

NAVPS Meaning

A

Net assets Value per Share

35
Q

Regulation and creation and offering of securities for public offering, equity and tradable debt instruments in the Philippines is covered both by the

A

Corporation code and the SRC

36
Q

NHMFC Meaning

A

National Home Mortgage and Finance Corporation

37
Q

RMBS Meaning

A

Residential Mortgage-backed Securities

38
Q

The PSE has three boards namely:

A

The First board
the second board
the small and medium Enterprise Board

39
Q

Foreign domiciled listed firms in the PSE are currently in what board

A

First board

40
Q

requirements for listing in PSE

A

Required documentations for IPO and /or listing
Size of public offering

41
Q

What are the Required documentations for IPO and /or listing

A

audited financial statements,
prospectus (red herring and final offering), registration statement with the SEC, several corporate secretary certifications, offering timetable,

42
Q

PDEX Meaning

A

Philippine Dealing and Exchange Sysetm

43
Q

There are two classifications of required reports

A

Structured reports
Unstructured Rerports

44
Q

are regular quarterly and annual reports. These reports must contain the firm’s financial statements and a corresponding management discussion and analysis of operations.

A

Structured Reports

45
Q

are reports emanating from the firm at any given point in time during the year.

A

Unstructured Reports

46
Q

is a report being mandated and voluminous, are submitted first to the SEC

A

Structured Reports

47
Q

SRO Meaning

A

Self-Regulatory Organizations

48
Q

is one who trades for his own account

A

Dealer

49
Q

is one who trades for others or the customers’ account/s.

A

Broker

50
Q

is a natural person offering or selling securities.

A

Salesman

51
Q

Abuses or Examples of unlawful price manipulation practices as defined in the Rule include:

A

Painting the Ticket
Marking the Close
Hype and Dump
Squeezing the float
Wash Sales
Improper Matched Orders

52
Q

engaging in a series of transactions in securities to give the impression of activity or price movement in a security;

A

Painting the Ticker

53
Q

buying and selling securities at the close of the market in an effort to alter the closing price of the security;

A

Marking the close

54
Q

engaging in buying activity at increasingly higher prices and then selling securities in the market at the higher prices;

A

Hype and Dump

55
Q

taking advantage of a shortage of securities in the market by controlling the demand side and exploiting market congestion during such shortages in a way as to create artificial prices;

A

Squeezing the Float

56
Q

engaging in transactions in which there is no genuine change in actual ownership of a security;

A

Wash Sales

57
Q

engaging in transactions where both buy and sell orders are done at the same time with the same price and quantity by different but colluding parties.

A

Improper Matched Orders

58
Q

CAIF Meaning

A

customer account information forms

59
Q

are those holding more than ten percent of the shares outstanding.

A

Principal stockholders

60
Q

is a publicly announced intention by a person, an entity, or a group of persons or entities, to acquire equity securities of a public company.

A

Tender Offers

61
Q

The state collects its taxes through the?

A

bureau of Internal Revenue

62
Q

NIRC Meaning

A

National Internal Revenue Code

63
Q

Certain provisions of the Amended National Internal Revenue Code are:

A

Taxes on Dividends and Interest Income
Capital gains and stock transfers
Documentary stamp tax (DST)
Taxes on local exchange listing via IPO
Taxes on mutual funds’ dividends

64
Q

Sale, barter or exchange of listed companies done through the PSE (local exchange) are subject to a tax rate of

A

½ of 1% of the gross amount received for the shares.

Capital Market (4 decks)

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