Module 7 Questions (JB Branch)

1. Which of the following statement is correct?
a. Qualified opinion is …….
b. Unqualified opinion is …….
c. Disclaimer of opinion is …….
d. Exception opinion is …….

2. If inflation rate increases, effect on interest rate will ________, and rate of return will
__________
a. Increase, increase
b. Increase, decrease
c. Decrease, increase
d. Decrease, decrease

3. If the price of the stock increase lately, the computation use LIFO method, the current asset
will…

4. Credit analyst uses financial statement to …..

5. Assets & Liabilities of SHF

6. Subsidiaries _____ %
Minority interest _____ %
Associated companies _____ %
Investment _____ %

7. If quick asset ratio increase compare to last year, shows that …..

8. Which organisation set out the accounting standard?

9. Investment tools (risk relationship)
Arrange it from lowest risk to highest risk
✍ Treasury bills
✍ Corporate bonds
✍ Ordinary shares
✍ Derivatives

10. Calculate the intrinsic value of rights

11. 1 question - if economy up/down, which shares will likely to stable/ or unlikely will decline.
- defense shares

Module 6 : Topic 2 Notes

Topic 2 : Regulation of the Securities Industry
 ______________________________________________________________
Securities industry  law
The legislation which affects the securities industry :
• Securities Commission Act 1993 (SCA)
• Securities Industry Act 1983 (SIA)
• Securities Industry (Central Depositories) Act 1991
• Futures Industry Act 1993
• Companies Act 1965 (CA)
______________________________________________________________
Why have specific laws
The first objective of securities regulation is to establish a capital market in
which investors can have confidence.
The functions of regulation are to
• define key features of the financial system and the role of the securities
market institutions
• steer market participants towards the adoption of best practices
• create disincentives against behaviour that would be detrimental to the
market.
The objective pursued by regulators are therefore, market integrity, fairness and
efficiency.
______________________________________________________________
Regulation of stock  market
The recognition of the need for a securities regulator to ensure investor protection
and market integrity is embedded in the SCA, under which SC is established.
______________________________________________________________
Merit-based regulation
The framework currently applied by the SC includes both merit-based and
disclosure-based regulation.
Section 32(4) of the SCA mandates that all proposals involving issues or offers of
securities be subject to the SC’s prior approval.
______________________________________________________________
Disclosure-based regulation
The role of the regulator under disclosure-based regulation would focus more on
the protection of potential investors by ensuring that the information disclosed is
sufficient, true and timely.
In this capacity, the regulator has an obligation to insist that every issue of
offering of securities is accompanied by full disclosure of all material information
required to form an investment decision.
Disclosure-based regulation puts the burden of telling the whole truth on the
seller. Any information found to be false or misleading and any material
omissions of information would subject the promoters and their advisers to stiff
penalties.

Module 7 Past Year Questions

Module 7
1. Accounting standard practice issued by ___ .
2. P/E ratio
3. Bond: Calculate PV value (3 related questions)
4. Ex- and cum right issue
5. Called and uncalled capital
6. Rights of a shareholder: entitled for dividend, voting right, gain on capital etc
7. Features of a blue chip: financially strong, bright future, income stable etc
8. Some questions on fixed income and money market:-
Eg:  Time path of bond

SIDC Module 6 Questions

Module 6
1. What is "securities"? - definition
2. Immediate basis features i.e. transaction: delivery and payment
3. Capital Adequacy Ratio: 3 questions i.e. calculation
Reporting of CAR ratio: When to report daily, weekly & monthly?
A compliance officer noted CAR of a stock broking firm fell below the required level, what
should he do?
4. Direct business transaction: When do we need to report to MSEB? VWAP (10% - 15%),
done before and after 5.15 pm
5. Define "margin", "equity" & "outstanding balance". What to do if MOF reaches 130% and
150%
6. Designated securities: 3 questions i.e. criteria
7. License: 2 questions i.e. license issued by SC
8. Relationship employee and dealer
9. When a stock broking firm has low paid up capital within certain period. What are the
procedures?
10. Corporate disclosure policy: When the stock broking company not disclose the information to
the client (i.e. a particular counter's information), what the client should do?
11. Brokerage for remisier
i.e. Commission RM1000, how much a remisier get? RM400.
12. Reserve funds i.e. % of NPAT to be allocated to reserve funds
13. Win-score roles/functions
14. Consideration of adviser
15. Single client exposure i.e. husband and wife (margin account - 30% of PO's Adjusted Capital)
16. CDS free balance. When?
17. Paid up capital of main board listing requirement
i.e. Bumiputra 30%, aggregate NPAT for 5 years (1st and 2nd boards)
18. Compliance officer's and EDO's duties
19. What is "contra" - definition
20. Functions of a stock broking firm: transact stock, research etc.
21. SCAN's functions
22. Netting
23. ROC's functions

SIDC Module 7 Examinations Set 1

SIDC Module 7 Set 1

SIDC Module 6 Mock Exam with answer & explaination - Ipoh Branch

SIDC Module 6 Examination ! Past Year Question with answer :
PS* answer is not 100% correct.



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