Lecture 3

Question 1

What is the criteria for good investment information

Answer 1

timely
accurate
adequate
readily available

Question 2

What are the fundamental principles of SGX corporate disclosure?

Answer 2

immediate public disclosure of material information
clarification of rumours and reports
response to unusual market action
thorough public dissemination
factual, clear and succinct public annoucement
no insider trading

Question 3

What are the common primary sources of investment information (broad categories)

Answer 3

company generated
SGX terminal
economic and industrial data and indices

Question 4

What are the common secondary sources of investment information (broad categories)

Answer 4

SGX publications
Newspapers, periodicals and other mass media
publications of stockbroking firms
computer-based information

Question 5

What are the company generated sources of information?

Answer 5

prospectus
annual report
quarterly and final results
circular 
analysts and representative meeting 
Press release
AGM and EGM

Question 6

What is the use of stock index?

Answer 6

ascertain general market conditions
benchmark
technical analysis
index portfolio

Question 7

How are stocks picked in a stock index

Answer 7

high liquidity
market capitalisation
sector representation