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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 a Singapore Government Security (SGS)?

    Answer: A debt instrument issued by the Singapore Government

    SGS are bonds issued by the Singapore Government, considered among the safest investments as they are backed by the government's full faith and credit.

  2. What is the difference between a secured and unsecured bond?

    Answer: Secured bonds are backed by specific assets; unsecured bonds have no asset backing

    Secured bonds are backed by specific collateral (assets), giving bondholders a claim on those assets. Unsecured bonds rely solely on the issuer's creditworthiness.

  3. What is a Real Estate Investment Trust (REIT)?

    Answer: A listed trust that invests in income-generating real estate

    A REIT is a trust listed on the stock exchange that owns and manages income-generating real estate, distributing most of its rental income to unitholders.

  4. What is an Exchange-Traded Fund (ETF)?

    Answer: A fund traded on the stock exchange that tracks an index or basket of assets

    An ETF is a fund that trades on a stock exchange like a share and typically tracks a market index, commodity, or basket of assets.

  5. What does 'ex-dividend' mean?

    Answer: The stock trades without entitlement to the declared dividend

    When a stock goes ex-dividend, buyers after that date will not receive the declared dividend. The dividend goes to whoever held the shares before the ex-date.

  6. What is a convertible bond?

    Answer: A bond that can be converted into a specified number of shares

    A convertible bond gives the holder the right to convert the bond into a predetermined number of shares of the issuing company.

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Sources & references

Exam facts on this page (fees, format, dates, passing scores) are checked against these official sources; the date is our last check. Editorial policy

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