Module 1 - Organization of Financial and Equities Markets

Question 1

By investing in bonds, investors expect their returns to come in the following form/s:

Answer 1

Coupon or interest rate & Potential capital gains by selling the bond at a higher value from the original value when it was purchased

Question 2

Market resiliency is defined as:

Answer 2

The speed with which a market recovers from a shock

Question 3

How many companies are part of the PSEi?

Answer 3

30

Question 4

A primary market issuance can be made in the stock exchange through:

Answer 4

Initial Public Offering and Private Placement

Question 5

he following are characteristics of dark pools EXCEPT:

Answer 5

Bid and offer prices are transparent and displayed to the public

Question 6

When a company raises funds through an equity offering of common shares, it is expected to repay its investors/shareholders of these common stocks through:

Answer 6

Cash dividends based on profits

Question 7

Which of the combinations below make up the three main criteria in selecting members of the PSEi?

Answer 7

Free float, liquidity, and market capitalization

Question 8

Which exchanges below DO NOT offer local derivatives trading?

Answer 8

Philippine Stock Exchange

Question 9

The following statements reflect the beginnings of a financial market EXCEPT:

Answer 9

There is an oversupply of people who are looking for new jobs in the financial sector

Question 10

The difference between the bid and ask prices is called:

Answer 10

Bid-ask spread