RFBT - SRC Flashcards
Which of the following is not a requisite of an investment contract?
a. It must involve an investment of money
b. The investment of money is made in a common enterprise
c. The investor must have an expectation of profits
d. The profit will be derived exclusively from the efforts of others
d. The profit will be derived exclusively from the efforts of others
Which government agency governs the registration of securities?
a. Securities and Exchange Commission
b. Securities Registration Commission
c. Securities Regulatory Board
d. Securities Registration Board
a. Securities and Exchange Commission
It is a contract between a buyer and a seller whereby the buyer is obligated to take delivery and the seller is obliged to deliver a fixed amount of an underlying commodity at a pre-determined price and date.
a. Futures
b. Warrant
c. Forward
d. Options
c. Forward
Statement 1: If the issuer of securities has filed for a judicial declaration of insolvency, then the SEC may revoke the registration of such securities.
Statement 2: If the issuer of securities has been convicted by final judgment of an offense involving moral turpitude, then the SEC may revoke the registration of such securities.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true
d. Both statements are not true.
b. Only Statement 2 is true.
Which of the following is not required to be registered with the SEC under the SRRC?
a. Shares of stock
b. Voting trust certificates
c. Certificates of deposit
d. Contract of real estate mortgages
d. Contract of real estate mortgages
Which of the following is required to be registered with the SEC under the SRC?
a. Treasury bills
b. Bonds of the Government of Japan
c. Membership certificates in non-stock corporations
d. Bonds issued by banks
c. Membership certificates in non-stock corporations
ABC Corporation is a close corporation. It applied for an increase in authorized share capital on January 5, 2021, which was approved by the Securities and Exchange Commission. Pursuant to the increase, ABC Corporation issued 10,000 shares of stock exclusively to its existing shareholders. No broker’s commission was paid in the transaction. Is the transaction required to be registered under the SRC?
a. No. Because the sale is only exclusive to its own stockholders only.
b. Yes. Because the object of the sale is shares covered by the SRC
c. Yes. Because no broker’s commission was paid.
d. No. Because the sale did not exceed 100,000 shares.
a. No. Because the sale is only exclusive to its own stockholders only.
On the requirement to register securities under the SRC, which of the following is generally an exempt transaction?
a. Pre-incorporation subscription
b. Reissuance of treasury shares
c. Flotation of bonds
d. Sale of shares with warrants
a. Pre-incorporation subscription
The deadline for the filing of the general information sheet is:
a. April 15 of the following year
b. 30 days following the date of the annual stockholder’s meeting
c. 60 days following the date stated in the by-laws of the corporation
d. 90 days following the date of the filing of the audited financial statements with the SEC.
b. 30 days following the date of the annual stockholder’s meeting
A material non-public information includes:
a. Information that concerns the internal management of the entity issuing securities
b. Information involving market studies and analyses
c. Information that will affect the price of the security
d. Information that constitutes falsity and manipulations
c. Information that will affect the price of the security
Who among the following is not an insider?
a. The issuer
b. Director of the issuer
c. Officer of a clearing agency
d. Relative within the fourth degree of consanguinity of the director of the issuer
d. Relative within the fourth degree of consanguinity of the director of the issuer
Gryffindor Corporation is engaged in the manufacturing of smartphones. In the product development stage is a top-secret smartphone which has four (4) back cameras, waterproof, no bezel, 5G technology, and tested to withstand a drop from a height of 100 feet. The Vice President for Research, Ginny, informed her husband, Neville, that such phone is on the works and is nearing the finishing stage. Ginny intimated that the phone will be a game-changer. Neville asks that Ginny email the details of the phone, which Ginny did. After viewing the email, Neville went to the restroom and inadvertently left his laptop and email open. Ron passed by Neville’s desk and saw the email. Curious, Ron read the contents of the email and saw the planned development and launch of the smartphone. Who is an insider?
a. Ginny only.
b. Ginny and Neville only.
c. Neville and Ron only.
d. Ginny, Neville, and Ron.
b. Ginny and Neville only.
If there is a purchase or sale of a security of the issuer made by an insider or such insider’s spouse or relatives by affinity or consanguinity within the 2nd degree, legitimate or common-law after such information came into existence, but prior to the dissemination of such information to the public and the lapse of a reasonable time for the market to absorb such information:
a. There is a presumption that the transaction is entered into fraudulently
b. There is a presumption that the transaction has been effected while in possession of material non-public information
c. There is a presumption that the transaction requires a tender offer
d. There is a presumption that the transaction was entered into regularly
b. There is a presumption that the transaction has been effected while in possession of material non-public information
This is done by placing of purchase or sale order, at or near the close of the trading period in order to affect the closing price likewise affecting the opening price the following day.
a. Securing the close
b. Drawing the open
c. Marking the close
d. Bringing the open
c. Marking the close
In this transaction, a part or portion of the issue/security which is outstanding but intentionally held by dealers or other person with a view of reselling them later for profit thereby affecting supply of the security or its availability while demand remains the same or increases, driving the prices up.
a. Squeezing the float
b. Painting the tape
c. Pushing the line
d. Washing the sink
a. Squeezing the float
