Securities

Question 1

interest or right which the owner, who is a shareholder or stockholder,
has in the management of the corporation

Answer 1

Share of stock

Question 2

written representations of debt securities or obligations of
corporations

Answer 2

Evidences of indebtedness

Question 3

a long-term debt security supported by a mortgage on corporate property

Answer 3

Bond

Question 4

certificates issued by a Special Purpose Entity (SPE), the
repayment of which shall be derived from the cash flow assets in accordance with the plan

Answer 4

Asset-backed securities

Question 5

a contract, transaction or scheme whereby a person invests his
money in a common enterprise and is led to expect profits primarily from the efforts of others.

Answer 5

investment contract

Question 6

interests in a profit sharing agreement
providing for a participation in the profit of a business venture by the participants of the
agreement.

Answer 6

Certificates of interest or participation

Question 7

participation certificates, debt instruments or

similar instruments issued by a special purpose vehicle company incorporated

Answer 7

Investment unit instruments (IUIs)

Question 8

evidences of money placed as

security for the issuance of future subscriptions.

Answer 8

Certificates of deposit for future subscriptions

Question 9

form of obligation issued as security for the repayment of the money
or property held by the trustee

Answer 9

Trust certificate

Question 10

evidence of interest or participation or privilege in a
corporation which not only entitles the holder to enjoy the use of a specific property, but also
to dividends or earning of said company, and upon liquidation of the company, a holder of a
proprietary share shall have proportionate ownership right over its assets.

Answer 10

Proprietary share or certificate

Question 11

an evidence of interest or privilege over a certain
property of a corporation in view of the amount paid by the holder for the said share/certificate.
While the holder is entitled to the use of the property, he has no right over dividends or of the
assets of the company upon liquidation thereof

Answer 11

Non-proprietary share or certificate

Question 12

require the issuer to repay the principal amount loaned to it by fixed maturity date, and at a stated rate of interest

Answer 12

Debt securities

Question 13

a random or indiscriminate offering of securities in general to anyone who will buy, whether solicited or unsolicited

Answer 13

Public Offering

Question 14

also covers the act of accepting future subscription deposits

Answer 14

Offered for sale or distribution

Question 15

contract providing for the making or taking delivery at a prescribed time in the future of a specific quantity and quality of a commodity or the cash value thereof

Answer 15

Commodity futures contract

Question 16

A publicly announced intention by a person acting alone or in concert with other persons to acquire equity securities of a “public company.”

Answer 16

Tender offer

Question 17

Any corporation with assets in excess of P50M and having 200 or more holders, at least 200 
    of which are holding at least 100 shares of a class of its equity securities.

Answer 17

Public Company

Question 18

This occurs when stocks are traded without a genuine change in actual beneficial
ownership making it appear that the stocks are actively traded

Answer 18

Wash Sale

Question 19

a change in the ownership of the securities.

Answer 19

matched orders

Question 20

occurs when both the buy and sell orders are

entered at the same time with the same price and quantity by different colluding parties

Answer 20

Matched order

Question 21

This is a practice of placing an order near the close of the trading day in an
effort to close price higher or lower than the previous price.

Answer 21

Marking the close

Question 22

This is a practice of buying activity at increasingly higher
prices and then selling securities in the market at the higher prices after announcing a glossy
picture of a particular issue as good investment contrived to sustain public interest in the
shares and thus lure investors to trade.

Answer 22

Hyping and dumping the stock

Question 23

This is 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.

Answer 23

Squeezing the float

Question 24

This is an order placed to protect a recognized gain in the price of securities
against potential loss.

Answer 24

Stop loss order

Question 25

It is a series of transactions in securities that are reported publicly to give
the impression of activity or price movement in a security.

Answer 25

Painting the tape

Question 26

This occurs when a speculator sells stocks which he does not own, in
anticipation that the price will decline and that he will be able to cover the sale by purchasing
them back at a later date at a lower price. This is done by borrowing stocks from another party
who still receives the dividends paid on the stocks while the short sale remains in effect.

Answer 26

Short selling

Question 27

A buyback by the issuer of its own shares,
sometimes has the effect of raising the market price of shares above the level that would
otherwise prevail.

Answer 27

Repurchase of outstanding stock by issuers

Question 28

involves the purchase of an equal number of put options and call options on the same underlying security at the same strike price and maturity date. Each option may be exercised separately, although the combination of options is usually bought and sold as a unit.

Answer 28

Straddle

Question 29

This is a situation where a broker-dealer is the sole or dominant market-maker in a
particular security and creates a market in that security by repeated purchases from, and
resells to, its individual retail customers at steady increasing prices.

Answer 29

Churning

Question 30

This is a situation in which a broker-dealer or an investment adviser recommends
the purchase of securities without disclosing its practice of purchasing such securities before
making the recommendation and them selling them at a profit when the price rises after the
recommendation is disseminated.

Answer 30

Scalping

Question 31

This is a practice of buying and selling shares in a single trading
session, where the investors settle their accounts at the end of the day

Answer 31

Single day trading practice

Question 32

an improper extension of
credit or purchase of shares without the intent of paying at all or with the intent of paying only
if the price goes up by the settlement date.

Answer 32

Free riding

Question 33

This a market malpractice whereby brokers, also acting as dealers, prioritize
their own dealer accounts by executing their own orders on a particular issue ahead of their
clients.

Answer 33

Front-running

Question 34

The selling or buying of a security by an insider while in possession of material non-public information with respect to the issuer or the security.

Answer 34

Insider Trading