CMFAS Securities Regulations M1 2

Question 1

What is a prospectus in the context of securities regulation?

Accepted Answer

A document that provides details of a securities offering to the public

Answer

A company's annual report

Answer

A contract between two traders

Answer

A type of stock certificate

Question 2

Under the SFA, what is 'insider trading'?

Accepted Answer

Trading based on material non-public information

Answer

Trading during market hours

Answer

Trading in small quantities

Answer

Trading through a licensed broker

Question 3

What is the role of the Singapore Exchange (SGX)?

Accepted Answer

To operate securities and derivatives exchanges

Answer

To print currency

Answer

To regulate banks

Answer

To collect government revenue

Question 4

Which of the following is NOT a type of regulated activity under the SFA?

Accepted Answer

Retail banking

Answer

Dealing in securities

Answer

Fund management

Answer

Providing custodial services

Question 5

What must a licensed person do when they become aware of a material change in their circumstances?

Accepted Answer

Notify MAS within the prescribed timeframe

Answer

Ignore it

Answer

Resign immediately

Answer

Inform the media

Question 6

What is 'market manipulation' under the SFA?

Accepted Answer

Artificially influencing the price or volume of securities

Answer

Normal trading activity

Answer

Buying shares at market price

Answer

Selling shares through a broker