Financial Instruments and Exchange Act Flashcards
When a financial instrument business operator is to carry out advertisements in connection with the financial instrument business in which it engages in, the FIBO is it strictly prohibited from representing expectations of gains from caring out an act OF financial instrument trading.
False
If registration as a sales representative for an employee of a financial instruments business operator has been revoked as a supervisory disposition prescribed in the financial instruments and exchange act, the said employee may be registered as a sales representative after one year from the date of the revocation
False
The relevant person might not be registered for five years from the date of revocation
It is prohibited for a financial instruments business operator to conduct activities by establishing principal office or other businesses in the same building as the principal business office of a financial institution
False
The FIBO must take appropriate steps so that the customers do not confuse the FIBO with the financial institution.
it is not necessarily prohibited
Notice of reconciliation shall be delivered whenever changes occur in balance of credits and liabilities of the customer and every time the customer requested the document
False
Notice of reconciliation shall be delivered according to category of customers which depends on the degree of transactions
Limit orders have price priority over market orders in transactions during training session of the Tokyo stock exchange market
False
Market orders have price priority of a limit orders
The trading unit of listed government bonds is face value five 50,000 ¥
Correct
Stock certificates once listed in the first section market of Tokyo stock exchange shell never be redesignated to the second section market under any circumstances
False
If an issue listed on the first section market falls within any of items in the Tokyo stock exchange standards, the issue is to be re designated to the second market
Under tender offer system tender offer must purchase all of the shares of share offered if the shareholding ratio of the share certificates after the purchase is to exceed 1/2
Wrong
Tender offer must purchase all of the shares if the shareholding ratio of the share certificates, after the purchase is to exceed two-thirds.
If financial statement included in annual sec reports have been audited by the BOD of the issuer, auditor’s certification from a public accountant or auditing firm is not required
False
Auditor’s certification from a certified public accountant or auditing firm who do not have special interest in the issuer is required for financial statements included in annual report
A financial instrument business operator, or an officer or an employee may not continue to solicit if a customer who has received solicitation has indicated his/her intention not to enter into the contract for margin transitions
False
Prohibition against repeated solicitation does not apply to margin transactions
Under insider regulations, an act of acquiring a share certificate as a result of exercising share option by holder of the said share option shall be exempted from insider trading regulations even if elements of insider trading are satisfied
Correct
Under insider trading regulations, material fact pertaining to business or other matter of a listed company are deemed to have been publicized when the representative director or the executive officer of the relevant listed company has announced the material facts to more than 2 press institutions and more than 12h has elapsed since the announcement
Correct
Under the disclosure system of status of large volume holding of share certificates, if a person has the necessary authority to invest in share certificates pursuant to a discretionary investment contract holds more than 5% of shares listed company, such person is obliged to submit a report of possession of large volume
Correct
Duties of Sales Representative which may be conducted by Class 2 Sales Rep
Foreign Investment Trust Beneficiary Certificates
Listed Convertibles Bonds with Share Option
Disclosure Status of large volume holding of share certificates a person holding share certificates of a list of the company having a holding ratio exceeding 5% must feel a report of position of large volume to the Prime Minister who is in five days from the date on which the person became a large volume holder
True
