CME-1 Securities Regulations 2

Question 1

Which regulation governs the offering of securities to the public in Saudi Arabia?

Accepted Answer

Rules on the Offer of Securities and Continuing Obligations

Answer

Anti-Money Laundering Law

Answer

Banking Control Law

Answer

Companies Law only

Question 2

What is the minimum public float requirement for companies listing on the Main Market of Tadawul?

Accepted Answer

30% of shares

Answer

10% of shares

Answer

20% of shares

Answer

50% of shares

Question 3

Under CMA regulations, what is the cooling-off period during which investors can withdraw their subscription from an IPO?

Accepted Answer

Within 2 business days of the prospectus amendment

Answer

No cooling-off period exists

Answer

Within 3 business days of subscription

Answer

Within 30 calendar days of subscription

Question 4

A CMA-licensed investment fund manager must ensure client assets are held by which entity?

Accepted Answer

An independent custodian

Answer

The fund manager's own account

Answer

The client's personal bank account

Answer

Any commercial bank branch

Question 5

What constitutes market manipulation under Saudi securities law?

Accepted Answer

Creating a false or misleading impression of trading activity

Answer

Buying stocks at market price

Answer

Selling stocks after a profit

Answer

Holding stocks for long-term investment

Question 6

Which type of CMA license allows a firm to manage client portfolios on a discretionary basis?

Accepted Answer

Managing license

Answer

Advising license only

Answer

Dealing license only

Answer

Arranging license only