Practice Test GeeksCMFAS Practice Test
← All CMFAS Flashcard Decks

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 an ordinary share?

    Answer: An ownership stake in a company with voting rights

    An ordinary share (common stock) represents an ownership interest in a company. Holders have voting rights and may receive dividends.

  2. What is a bond?

    Answer: A debt instrument where the issuer promises to repay the principal with interest

    A bond is a fixed-income debt instrument where the issuer borrows money from investors and agrees to pay interest and return the principal at maturity.

  3. What is the difference between a market order and a limit order?

    Answer: A market order executes immediately at the best available price; a limit order specifies a price

    A market order executes immediately at the current best available price, while a limit order only executes at the specified price or better.

  4. What is a preference share?

    Answer: A share that has priority over ordinary shares for dividends and asset distribution

    Preference shares have priority over ordinary shares for dividend payments and claims on assets during liquidation, but typically carry limited or no voting rights.

  5. What is an initial public offering (IPO)?

    Answer: The first time a company offers its shares to the public

    An IPO is when a private company first offers its shares to the public through a listing on a stock exchange.

  6. What is a dividend?

    Answer: A portion of a company's profits distributed to shareholders

    A dividend is a payment made by a company to its shareholders, usually from its profits, as a return on their investment.

How this page was made: written with AI tools and published by Nathan Beja, founder of Practice Test Geeks, who is responsible for its content. Exam facts are checked against the official sources listed below. Not reviewed by a subject-matter expert. Editorial policy

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