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Securities Products M2 Flashcards

6 cards from real CMFAS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 Securities Products M2 flashcards as text

  1. What is the yield of a bond?

    Answer: The return an investor earns on the bond, expressed as a percentage

    Bond yield is the return earned by an investor, typically expressed as a percentage of the bond's price. It includes interest payments.

  2. What is a rights issue?

    Answer: An offer to existing shareholders to buy additional shares at a discounted price

    A rights issue gives existing shareholders the right to purchase additional shares at a discounted price, usually to raise new capital.

  3. What is the price-to-earnings (P/E) ratio?

    Answer: The price of a share divided by earnings per share

    The P/E ratio compares a company's share price to its earnings per share, indicating how much investors are willing to pay for each dollar of earnings.

  4. What is a warrant?

    Answer: A derivative that gives the holder the right to buy shares at a predetermined price

    A warrant is a security that gives the holder the right, but not the obligation, to buy underlying shares at a fixed exercise price before expiry.

  5. What does 'market capitalisation' mean?

    Answer: The total market value of a company's outstanding shares

    Market capitalisation = share price × total number of outstanding shares. It represents the total market value of a company.

  6. What is a corporate bond?

    Answer: A bond issued by a company to raise capital

    A corporate bond is a debt security issued by a corporation to raise funds. The company pays interest and returns the principal at maturity.

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  1. ibf.org.sg — Eligibility, fees, score release, registration, retake policy, exam format, passing score, time limit · verified Oct 2026