Professional Documents
Culture Documents
Question 1
1-1-8 (1-1-page 2)
Question 2
‘Securities’ is the general term used to describe financial instruments which are:
1-1-16(1-1-page 8)
Question 3
Question 4
XYZ Bhd. had an initial public offering. The authorised capital of XYZ Bhd. is RM400
million divided into 800 million shares at 50 sen each. All the shares were issued and
have been partly paid to 40 sen per share. What is the issued capital of XYZ Bhd.?
(A) RM 80 million
(B) RM 320 million
(C) RM 400 million
(D) RM 720 million
1-3-17(1-3-page 19)
Question 5
(i) To be passed by a majority of more than 50 per cent of the members voting in
person or by proxy at a meeting
(ii) To be passed by a majority of not less than 75 per cent of the members voting
in person or by proxy
(iii) Thirty (30) days notice to be given for such resolution
(iv) Twenty-one (21) days notice to be given for such a resolution
Question 6
Which of the following measures can be taken by the Commission against public
limited companies for failure to comply with the Securities Commission’s Policies and
Guidelines onfor Issues/Offer of SecuritiesIssuing of Shares?
1-4-12(1-4-page 7)
Question 7
(A) The level of the issue price on the first day of the trading
(B) That the company profits for the next two (2) years will be guaranteed
(C) That any funds shortfall is made up by a bank loan of equal value
(D) That the full funds will be available at a specified time
1-5-7(1-2-page 5)
Question 8
Question 9
Which two ways can a Dealer’s Representative receive confirmation that an order has
been accepted or executed?
(i) The order can be confirmed via a printer in the dealing room
(ii) The KLSE will immediately notify the dealer by e-mail
(iii) The stockbroking company’s own staff at the KLSE will notify the dealer
(iv) The order can be confirmed via an order status on-line screen on the dealer’s
work station
1-6-24(1-4-page 15)
Question 10
If a BUYING CLIENT does not pay for a share purchase by the due date, which ONE of
the following will occur?
2-1-7(2-2-page 18)
Question 12
Siti makes an offer by telephone to Fauzi to buy 1,000 shares in ABC Bhd. at RM10.00
per share with settlement due the following day. Fauzi agrees to buy the shares at
RM10.00 with settlement in five day’s time. Siti’s offer has been terminated primarily
because:
2-4-1(2-4-page 4)
Question 13
In the relationship between a stockbroking company and its clients, which of the
following statements are CORRECT?
Question 14
Question 15
Money held in a stockbroking company’s client trust account on behalf of a client may
be disbursed for all of the following purposes EXCEPT:
Question 16
When a price traded in a Direct Business transaction exceeds ten (10) per cent of the
Volume-Weighted Average Price (VWAP) of the securities of the preceding trading
day, Member Companies are required to provide to the Exchange:
(A) (i) and (iv) only Taken from Q6, M6S3 (C)
(B) (ii), (iii) and (iv) only (20 Oct 2000)
(C) (i), (iii) and (iv) only
(D) All of the above
2-6-27(2-6-page 9)
Question 17
In determining whether a corporation is ‘fit and proper’ to hold a dealer’s licence, the
Commission must consider which of the following?
Question 18
A licence granted under the Securities Industry Act 1983 is required to be renewed
after:
2-6-34(2-6-page 11)
Question 19
Under the Securities Industry Act 1983, a licence issued to a corporation may be
subject to all of the following EXCEPT:
1-2-1
Question 20
The Listing Rules Requirements of the Kuala Lumpur Stock Exchange covers the
following matters EXCEPT:
(A) the requirements for listing a company on the Main Board or Second Board of the KLSE
(B) the corporate disclosure policy and standards
(C) the procedure for register of securities
(D) the continuing listing requirements to ensure an informed market is maintained
1-3-14(1-3-page 15)
Question 21
(i) In the case of a natural person, such person does not hold a Dealer’s
Representative’s licence
(ii) In the case of a corporation, has entered into an arrangement to acquire at
least two (2) per cent of the shares of the Member Company
(iii) A Non-Executive director of the Member Company must be at all times a Non-
Dealing Member
(iv) A Non-Dealing Member must get consent from the board of director before
disposing any of his shares in the Member Company
2-5-19(2-6-page 8)
Question 22
An applicant for an investment representative’s licence must meet all of the following
requirements EXCEPT:
1-4-4(1-4-page 18)
Question 23
A company has issued 200 million of shares at a par value of 50 sen. The company
announces a bonus issues of 2 for 5. What is the total number of shares now issued?
What is the minimum bid for securities that are priced between RM10.00 to
RM24.90?
2-4-16(1-4)
Question 25
(A) the amount of commission charged to the client over a specified period
(B) the name of the other party in a ‘married’ transaction involving the client
(C) the securities held by the stockbroking company on behalf of the client
(D) the amounts paid into the stockbroking company’s trust account on behalf of the client
New-s.40 SIA
Question 26
The Securities Industry Act 1983 requires a dealer (stockbroker) to inform the client
when dealing in securities as principals. Which of the following statements are
conditions of dealing as principals?
(i) When the dealer enters into a transaction on behalf of any person associated
with the dealer
(ii) The dealer dealing in securities on behalf of a corporation in which he has
controlling interest
(iii) The dealer acts on behalf of a corporation in which his interest and the
interests of his directors together constitute a controlling interest
(iv) When the dealer enters into a transaction for its own subsidiary company
New-s.43(4) SIA
Question 27
A dealer shall keep records in sufficient details to show separately particulars of all
transactions by the dealer with:
New-s.45 SIA
Question 28
Under the Code on Take-Overs and Mergers, a shareholder must make a mandatory
offer to acquire the company if the shareholder holds more than:
New- s.40A
Question 29
The Securities Industry Act 1983 requires an adviser to have a reasonable basis in
making his recommendation to a person. Which of the following constitute elements
of reasonable basis?
(i) The adviser has taken into account the investment objectives of that person
(ii) Consideration has been given on the subject matter of the recommendation by
the adviser
(iii) The adviser has conducted due diligence on the subject matter of the
recommendation
(iv) The financial situation and particular needs of the person considered by the
adviser
Question 30
Alpha-X Securities Bhd. has been a licensed dealer since 1995. Upon becoming a
licensed dealer, Alpha-X Securities Bhd. contributed RM30,000 to the compensation
fund. In 1996 and 1997, Alpha-X Securities Bhd contributed RM10,000 annually. In
November 1998, Alpha-X Securities was suspended. Which of the following
statement is CORRECT relating to Alpha-X Securities’s contributions to the
compensation fund? Alpha-X Securities Bhd.:
(A) can request a refund on the yearly payment to the compensation fund but not the initial
RM30,000
(B) will have to let the exchange to use it’s discretion on the percentage of the contribution
that can be refunded
(C) will have to pay RM10,000 to the compensation fund for 1999 before 31 st
December 1999
(D) can request a refund of the yearly payment and need not pay for 1999
New-3.4.3(5)
Question 31
New-3.4.4(2)
Question 32
Question 33
New-4.4.1(2)
Question 34
Which of the following conditions may be taken by the Committee upon the
declaration of any listed securities as ‘Designated Securities’?
New-4.8.2(7)
Question 35
Audrey, a Commissioned Dealer’s Representative for Miharja Securities Bhd. transacted securities
valued at RM100,000 for a client on Tuesday. The brokerage charged on the transaction by
Miharja Securities Sdn. Bhd. is RM1,000. What is the maximum amount of commission Audrey is
entitled to?
(A) RM200
(B) RM300
(C) RM400
(D) RM500
New-5.3.4
Question 36
The aggregate outstanding balances in the margin accounts maintained by all clients
of a Member Company shall not exceed ____________of the Adjusted Capital of the
Member Company.
New-5.3.5
Question 37
Permata Securities Sdn. Bhd. has an Adjusted Capital of RM10 million. Lim, a client of
Permata Securities Sdn. Bhd. has requested for a credit facility for trading of
securities. What is the maximum amount of credit can Permata Securities Sdn. Bhd.
provide for Lim?
2-6-29(2-6-page 10)
Question 38
Under the Securities Industry Act 1983, a licensed representative must do all of the
following EXCEPT:
Question 39
As a general rule, a Member Company must calculate and monitor its Capital
Adequacy Ratio and report to the Exchange:
(A) on a daily basis and not later than 4.00 p.m. on the following market day
(B) on a weekly basis, not later than 4.00 p.m. on the first market day of the following week
(C) on a monthly basis, not later than 4.00 p.m. on the tenth calendar day after the end of
the month
(D) on a quarterly basis, not later than 4.00 p.m. of the first week of the following quarter
New-11.1.3
Question 40
In the event where a Member Company has failed to maintain it’s Capital Adequacy
Ratio, which of the following actions may be taken immediately by the Committee?
(i) Prohibit or restrict the Member Company from carrying out or transacting the
business of dealing in securities
(ii) The Committee can appoint one or more persons to perform any duties or
functions with respect to the operation or management of the Member
Company
(iii) The committee can appoint one or more persons for the purpose of advising
the Member Company on any matters relating to the business operation or
management of the Member Company
(iv) To appoint one or more receivers or managers to manage the whole business
affairs and property of the Member Company
New-11.2.1
Question 41
A Dealer’s Representative was found guilty by the Committee to the act of falsifying
particulars of client’s account. Which of the following actions may be taken by the
Committee:
(i) a reprimand
(ii) a fine
(iii) a suspension of his right to trade
(iv) having his name struck off the register of Dealer’s Representative
Question 42
Select the CORRECT statements regarding the settlement for a ready basis contract.
(i) In respect of payment by buying clients to Member Companies, not later than
12.30 p.m. by the third (3rd) market day following the contract date
(ii) In respect of payment by the Clearing House to the net selling Member
Companies, not later than 10.00 a.m. on the third (3 rd) market day following
the contract date
(iii) In respect of payment by the net buying Member Companies to the Clearing
House, not later than 10.00 a.m. on the third (3 rd) market day following the
contract date
(iv) In respect of payment by Member Companies to selling clients, not later than
12.30 p.m. on the third (3rd) market day following the contract date
(A) (i), (ii) and (iii) only Taken from M6S3, Q53
(17 July 2001)
(B) (ii), (iii) and (iv) only
(C) (i), (ii) and (iv) only
(D) All of the above
New-Schedule 2A
Question 43
Salmah bought one lot of PQR shares on Tuesday 1/5/1999. The latest date for the
shares to be delivered into her CDS account is:
Question 44
Malik bought one lot of KLM shares on Monday 1/5/1999. Malik has to make full
settlement with his broker before:
New-5.2.3
Question 45
Raj is a director in Prime Securities Sdn. Bhd. He wishes to buy MNO shares through
his trading account with West Securities Sdn. Bhd. As a director of a Member
Company, Raj has to obtain a written consent from the:
New-Article 8.8
Question 46
Jati Securities Sdn. Bhd. was found guilty of breaches of the Rules of KLSE by the
Committee and was fined RM150,000 on 1/5/19XX. Select the CORRECT statement
regarding the failure to abide by the decision imposed by the Committee.
(A) Failure to pay the fine within fourteen (14) days could lead to the suspension of
Jati Securities Sdn. Bhd. from further trading
(B) Jati Securities Sdn. Bhd. must pay the fine within twenty-one (21) days failing which, Jati
Securities Sdn. Bhd. will be suspended as a Member within the stipulated period
determined by the Committee
(C) Jati Securities Sdn Bhd. must pay the fine within fourteen (14) days failing which, Jati
Securities Sdn. Bhd. will be expelled from the Exchange
(D) Failure to pay the fine within seven (7) days would lead to the suspension of Jati Securities
Sdn. Bhd. and face public reprimand
New-3.6.2
Question 47
(i) Handling the complaints of clients and reporting the action taken to the board
(ii) Reviewing application forms and documents of accounts opened by clients
(iii) Approving transaction by Directors of Member Company
(iv) Reviewing proprietary trading of the Member Company undertaken by a
Salaried Dealer’s Representative
New-4.1.1
Question 48
Question 49
(i) The Executive Director Operations oversees the functions of the Compliance
Officer
(ii) All Executive Directors have to be a member of a recognised stock exchange
(iii) He must pass an examination as stipulated by the exchange and the
Commission
(iv) An Executive Director who resigns must notify the exchange not less than
thirty (30) days in writing
New-7.2.2(1)(b)
Question 50
Suria Securities Sdn. Bhd. and Purnama Securities Sdn. Bhd. agreed upon a Direct
Business Transaction on Monday 4.00 p.m. When must this transaction be reported to
the Exchange?
Question 51
Arcadia Bhd., a Member Company, has shareholders’ fund (including reserve fund) of
RM9.2 million. Audited profit after tax for the year 1998 is RM50 million. How much
must Arcadia Bhd. transfer into its Reserve Fund?
Question 52
(i) Shareholders are jointly and severally liable without limit for the debts of the
company if it is wound up through insolvency
(ii) They are usually used to passively hold property and investments where
liabilities are unlikely to be incurred
(iii) One member may be required by the company’s liquidator to pay the debts
without seeking a contribution from the other members
(iv) It is possible for an unlimited company to convert to a limited company
1-3-10(1-3-page 11)
Question 53
1-4-21(Listing Rules)
Question 54
The following are the relevant criteria for listing under the KLSE Listing Rules
Requirements EXCEPT:
Question 55
1-5-24(1-5-page 3)
Question 56
(A) one (1) month after the close of the financial year Taken from M6S3, Q33
(B) two (2) months after the close of the financial year (17 July 2001)
(C) three (3) months after the close of the financial year
(D) five (5) months after the close of the financial year
2-2-6
Question 57
Question 58
Four clients of ABC stockbroking company sell 1,000, 2,000, 3,000 and 4,000 of X
securities respectively and one client of ABC buys 20,000 X securities. For the
stockbroking company under SCANS, this will result in:
Question 59
Hassan accepts Woon’s proposal to manage his investment portfolio for him by
sending a letter by post together with a cheque for the first quarter’s fee. Hassan is
deemed to accept Woon’s proposal:
New-9.5.3
Question 60
Every Member Company must maintain the Capital Adequacy Ratio. Which of the
following are conditions prescribing the computation of the Capital Adequacy Ratio?
(i) Its Liquid Capital is at all times greater than its Total Risk Requirements
(ii) Its Gearing must be at all times less than 50 per cent
(iii) Its Core Capital is at all times greater than its Operational Risk Requirements
(iv) Its Current ratio is at least 2:1