SRC

Question 1

What are the requisites of an investment contract?

Answer 1

• Investment of money
• In a common enterprise
• with expectation of profits
• Primarily from the efforts of others

Question 2

Who are considered insiders in insider trading?

Answer 2

• Issuer
• Director or officer of the issuer
• A person whose relationship to the issuer gave him access to material non-public
  information.
• Government employee, director or officer of an exchange, clearing agency
• A person who learns the info from communication from any of the insider

Question 3

What is the General Rule of Filing Annual Financial Statements in a Corporation using
Fiscal year?

Answer 3

General Rule: 120 calendar days from the end of fiscal year

Question 4

What are the exceptions to Filing Annual Financial Statements in a Corporation using
Fiscal year?

Answer 4

• Broker dealers- 110 calendar days from the end of the fiscal year.
• Listed and Public Companies - 105 days from the end of the fiscal year

Question 5

What government agency governs the registration of securities?

Answer 5

Securities and Exchange Commission

Question 6

The deadline for the filling of the general information sheet.

Answer 6

30 days following the date of the annual stockholder’s meeting

Question 7

The mandatory tender offer applies to any person who intends to acquire shares of
listed corporations amounting to?

Answer 7

At least 35%

Question 8

This is done by placing a purchase or sale order, at or near the close of trading period in
order to affect the closing price likewise affecting the opening price of the following day.

Answer 8

Marking the close

Question 9

What is the purpose of Republic Act 8799, otherwise known as The Securities Regulation
Code?

Answer 9

The Securities Regulation Code or RA No. 8799 aims to protect the investing public
primarily through a system of disclosure and provide punishment for fraudulent
practices.

Question 10

It is 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.

Answer 10

Squeezing the float

Question 11

Material Non-public Information

Answer 11

Information that will affect the price of the security or would influence a person in
deciding whether to buy, sell, or hold a security which is not available to the public.

Question 12

Who are allowed to the mandatory tender offer of at least 35% over a period of 12
months?

Answer 12

• Listed Corporations
• Corporations with:
  i. Assets of at least 50M and
  ii. Having at least 200 shareholders who each have at least 100 shares

Question 13

Insider Trading

Answer 13

An act committed whenever an insider is in possession of a material non-public
information, transacts on the securities