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Capital Market > Chapter 3 > Flashcards

Chapter 3 Flashcards

(73 cards)

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1
Q

The two exchanges of the philippines before

A

Manila stock exchange established in 1927
makati stock exchange in 1963

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2
Q

When does the 2 exchanges agreed to a functional unification by a computer link-up, operating a one pricw, one market system

A

march 1994

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3
Q

The PSE organizational structure

A

The president will report to the board of directors.
Board of directors comprised of seven trading participants and eight independent individuals

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4
Q

The pse is divided into seven major divisions

A

Finance and investment decision
market operations decision
technology division
capital markets development decision
issuer regulation division
corporate services division
market regulation division

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5
Q

Other offices include

A

Office of the general counsel
corporate governance office

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6
Q

It is a self-regulatory organization, a status granted by sec in 1998

A

Pse

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7
Q

Being an , it is empowered to police its own ranks and make its own rules

A

SRO

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8
Q

This regularly audit the operations of member firms for net capital and customer protection examination and sales practice and business conduct compliance

A

PSE

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9
Q

Is the excess of liquid assets over the liabilities of brokers

A

net capital rule

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10
Q

It shows the capability of the broker to promptly settle customer claims and other obligations

A

Net capital rule

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11
Q

This ensures that the broker’s sales practices and business conduct confirms with the customer first policy rule whereby brokers orders must surrender priority to clients consistent with the securities regulation code

A

PSE

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12
Q

This detects breaches of trading rules market manipulation or inside their trading to ensure a fair efficient and transparent trading and the exchange

A

Market regulation division

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13
Q

Market regulation division is responsible for setting up

A

Price freeze rule and alert levels

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14
Q

Alert levels are as follows

A

Cumulative price alert
cumulative volume alert
run-off alert
share concentration alert
significant trading activity

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15
Q

To describe issues deviating beyond the variance limit of cumulative price

A

Cumulative price alert

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16
Q

To lease issues deviating beyond the variance limit of cumulative volume

A

Cumulative volume alert

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17
Q

to list all significant trading activity done proximately a few minutes prior to run of .

A

Run-off alert

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18
Q

List brokers with unusual concentration of trading activity

A

Share concentration alert

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19
Q

List issues with unusually significant market activity based on the company’s statistical average trading volume

A

Significant trading activity

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20
Q

SIPF

A

Securities Investor Protection Fund

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21
Q

This is envisioned to protect the investing public against losses in case of fraud failure or insolvency of brokers and dealers who are members of the exchange

A

SIPF

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22
Q

It is previously called the pse composite index

A

Market indices

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23
Q

The six sector indices of pse

A

Financials
industrial
holding firms
property
services
mining and oil

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24
Q

It is a basket of selected 30 stocks that mimicked the overall performance of the stock market

A

PSEi

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25
This is computed using volume weighted average price of a listed stock during a particular review period
Free float market capitalization
26
It is a company's first offering of shares to the general public
Initial public offering (IPO)
27
It usually involves new primary common shares and sometime secondary shares
IPO
28
Companies elect to do this, it is the system by buying in simply reorganizing a listed company, in effect by passing the ipo process saving time and money
backdoor listing
29
Is instrumental in reviewing the organization of the company formulating business plans evaluating the company's viability and designing the terms of offering among others
Underwriter
30
It is a printed statement containing all material facts about the applicant operations, example risk factors, use of proceeds, terms of offering, financial statements, and projections
Prospectus
31
Another way to list shares in the pse is via
Listing by way of introduction
32
Trading is carried out through the use of this
Pse trade workstation
33
This is a fully automated screen-based system that allows continuous order matching based on price account type - time priority
Pse trade workstation
34
ROSS
registry of scrip less securities
35
Settlement of transactions is scrip less and it is based on the
Book entry settlement system (bes)
36
SCCP
Securities Clearing Corporation of the Philippines
37
This ensures payment from the buyer and shares of the seller are deposited accordingly by brokers
SCCP
38
PCD
Philippine Central Depository
39
custodian/depository of scrip less shares
PCD
40
Two trading floors of the exchange
Pse center in ortigas pse plaza in makati
41
It is done by board lot or round lot system
Normal equity market trading
42
It determines the minimum number of share one can purchase or sell at a specific price range
Board lot table
43
This is done with volume and quantity last than the defined board lot
odd lot market trading
44
The types of orders that pse trade workstations except
day order GTC order GTD order GTW order sliding validity FAK order
45
Good for a particular day
day order
46
orders are good until cancelled by the user until this reach the set expiration date of the instrument
GTC order
47
Orders remain valid until the date specified when the order is entered
GTD order
48
Orders are valid for 7 calendar days from the time of posting
GTW order
49
Good for 360 calendar day
Sliding validity
50
Are execute and eliminate orders with any remaining and executed portion eliminated
FAK order
51
Lot sizes can take the form of
Regular order odd lot order
52
Conforms with the minimum shares based on price shown in table 3.5
Regular order
53
Does not conform with table 3.5
odd lot order
54
Most pse trades will fall under the following order types
Limit order market order market on opening or closing order market to limit order stop loss order stop limit order
55
An order to buy or sell securities at a specified volume and price with an expected potion added to the central book order at the entered limit price
Limit order
56
An order to buy or sell securities without a specified price executed at the best bid offer price or last traded price, whichever is better
Market order
57
An order to buy or sell securities at the end a captive opening or closing price
Market on opening or closing order
58
Disorder has no specific price and accepted only during pre open and pre close .
Market on opening or closing order
59
An order to immediately buy or sell securities at the best possible price between the best bid offer and the last traded price with the an executed potion automatically transform into a limited or at the executed price
Market to limit order
60
An order which stays inactive until a trade occurs at a predetermined trigger price or butter and immediately treated as a market order
Stop loss order
61
An order which stays inactive until a trade occurs at to predetermined prices namely the trigger price and the limit price
Stop limit order
62
Other order types include
Volume qualifiers with minimum order quantity and iceberg order
63
When a broker has one client buying in another selling at the same price transaction is immediately done via
cross sale
64
It is the sale of securities not owned by the seller with the hope of buying back the same security at a lower price to lock in profits
Short sale
65
They deliver borrowed certificates first and later on they purchase equity to cover the borrowed certificate
Short sellers
66
The eligible for short selling in accordance with the following criteria
Market capitalization of at least 10 billion tradability
67
This rule states that no trading participant shall use the facility of the exchange to affect a short sale of any security and less the transaction is
Up Tick Rule
68
It is the purchase of stocks partly financed by the broker's with a purchase stocks as collateral
Margin trading
69
These are the percentage of the bonds face value and no price fluctuations are necessary
Price quotes
70
Occur when orders with a minimum transaction value of 20 million are transacted at a rated price with a positive negative 5% from the last adjusted closing price of the security to be traded
ordinary block sales
71
LACP
Last adjusted closing price
72
the PSE establishes this based on price and volume for all companies listed so as to monitor and detect unusual movements of share
alert levels
73
involve a minimum transaction value of 50 million, approved by the PSE prior to execution, and maybe priced beyond positive negative 5% from the LACP
Special block sales

Capital Market (3 decks)

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