1-1-6 (1-4-page 11)

Question 1

Which of the following describe the activities of stockbroking companies?

(i) To take orders from clients to buy and sell securities

(ii) To underwrite new issues of securities
(iii) To research and report on the listed companies and their securities
(iv) To facilitate payment and settlement of securities by clients

(A) (i) and (ii) only

(B) (i) and (iii) only
(C) (iii) and (iv) only
(D) All of the above

1-1-8 (1-1-page 2)

Question 2

‘Securities’ is the general term used to describe financial instruments which are:

(i) marketable or saleable in the marketplace

(ii) evidence of ownership or debt
(iii) interest bearing or dividend paying instruments
(iv) physical commodities that are traded in financial markets

(A) (ii) and (iv) only

(B) (i) and (iii) only
(C) (i), (ii) and (iii) only
(D) (ii), (iii) and (iv) only

1-1-16(1-1-page 8)

Question 3

The KLSE index is updated and calculated electronically once every:

(A) one (1) minute

(B) two (2) minutes
(C) five (5) minutes
(D) one (1) day
1-3-8(1-3-page 11)

Question 4

XYZ Bhd. had an initial public offering. The authorised capital of XYZ Bhd. is RM400
million divided into 800 million shares at 50 sen each. All the shares were issued and
have been partly paid to 40 sen per share. What is the issued capital of XYZ Bhd.?

(A) RM 80 million
(B) RM 320 million
(C) RM 400 million
(D) RM 720 million

1-3-17(1-3-page 19)

Question 5

A special resolution to alter a company’s memorandum and articles of association

requires which of the following?

(i) To be passed by a majority of more than 50 per cent of the members voting in
person or by proxy at a meeting
(ii) To be passed by a majority of not less than 75 per cent of the members voting
in person or by proxy
(iii) Thirty (30) days notice to be given for such resolution
(iv) Twenty-one (21) days notice to be given for such a resolution

(A) (i) and (ii) only

(B) (i) and (iv) only
(C) (ii) and (iii) only
(D) (ii) and (iv) only
1-4-8(1-4-page 4)

Question 6

Which of the following measures can be taken by the Commission against public
limited companies for failure to comply with the Securities Commission’s Policies and
Guidelines onfor Issues/Offer of SecuritiesIssuing of Shares?

(i) Issue a reprimand letter

(ii) Prosecution under the relevant section of the Securities Industry Act 1983
(iii) Non-acceptance of corporate proposals from the public listed company
(iv) Delisting of company from the exchange

(A) (i) and (ii) only

(B) (iii) and (iv) only
(C) (i), (ii) and (iii) only
(D) All of the above

1-4-12(1-4-page 7)

Question 7

By having a merchant bank appointed to underwrite the listing of a public company, a

company can guarantee which ONE of the following?

(A) The level of the issue price on the first day of the trading
(B) That the company profits for the next two (2) years will be guaranteed
(C) That any funds shortfall is made up by a bank loan of equal value
(D) That the full funds will be available at a specified time

1-5-7(1-2-page 5)

Question 8

The WinSCORE system can be used for which of the following?

(i) Order and trade routing

(ii) Order confirmation
(iii) Monitor KLSE’s stock market information on real time basis
(iv) Credit control management

(A) (i) and (iv) only

(B) (i) and (iii) only
(C) (ii) and (iv) only
(D) All of the above
1-5-10(1-5-page 11)

Question 9

Which two ways can a Dealer’s Representative receive confirmation that an order has
been accepted or executed?

(i) The order can be confirmed via a printer in the dealing room
(ii) The KLSE will immediately notify the dealer by e-mail
(iii) The stockbroking company’s own staff at the KLSE will notify the dealer
(iv) The order can be confirmed via an order status on-line screen on the dealer’s
work station

(A) (i) and (ii) only

(B) (iii) and (iv) only
(C) (ii) and (iii) only
(D) (i) and (iv) only

1-6-24(1-4-page 15)

Question 10

If a BUYING CLIENT does not pay for a share purchase by the due date, which ONE of
the following will occur?

(A) The KLSE will institute selling-out

(B) The KLSE will institute buying-in
(C) The stockbroking company will institute selling-out
(D) The stockbroking company will institute buying-in

2-1-7(2-2-page 18)

Question 11 (Rule 201.1)

The Committee of the KLSE may do all of the following EXCEPT:

(A) fine, suspend or expel a Member

(B) suspend a Dealer’s Representative licence
(C) investigate and adjudicate upon a complaint by a non-Member
(D) notify Members of a defaulting non-Member
2-3-5(2-3)

Question 12

Siti makes an offer by telephone to Fauzi to buy 1,000 shares in ABC Bhd. at RM10.00
per share with settlement due the following day. Fauzi agrees to buy the shares at
RM10.00 with settlement in five day’s time. Siti’s offer has been terminated primarily
because:

(A) it has been accepted by Fauzi

(B) it has been rejected by Fauzi
(C) it has been offset by Fauzi’s counter offer
(D) it has lapsed because Fauzi could not settle within one day

2-4-1(2-4-page 4)

Question 13

In the relationship between a stockbroking company and its clients, which of the
following statements are CORRECT?

(i) The stockbroking company is the principal of the client

(ii) The client is the agent of the stockbroking company
(iii) The client is the principal of the stockbroking company
(iv) The stockbroking company is the agent of the client

(A) (i) and (ii) only

(B) (i) and (iii) only
(C) (ii) and (iv) only
(D) (iii) and (iv) only

Question 14

Any differences resulting from a “contra” between outstanding purchases position

and outstanding sale position shall be settled between Member Companies and their
clients not later than the __________ market day following the date of such
“contra”.

(A) first (1st) Taken from Q10, M6S3 (A)

(B) third (3rd) (20 Oct 2000)
(C) fifth (5th)
(D) seventh (7th) Changed answer from (D) to (C)
(17 July 2001)
2-4-14(2-4-page 15)

Question 15

Money held in a stockbroking company’s client trust account on behalf of a client may
be disbursed for all of the following purposes EXCEPT:

(A) to pay brokerage due to the stockbroking company

(B) to pay money to another Member of the KLSE
(C) to pay money in accordance with the client’s written instruction
(D) to pay money in accordance with the requirements of the Court

Question 16

When a price traded in a Direct Business transaction exceeds ten (10) per cent of the
Volume-Weighted Average Price (VWAP) of the securities of the preceding trading
day, Member Companies are required to provide to the Exchange:

(i) the details of the buyer and seller

(ii) the number of transactions of the same securities by both parties for the last
one (1) month
(iii) the basis on which the price was transacted and agreed by both parties
(iv) the number of securities involved

(A) (i) and (iv) only Taken from Q6, M6S3 (C)
(B) (ii), (iii) and (iv) only (20 Oct 2000)
(C) (i), (iii) and (iv) only
(D) All of the above

2-6-27(2-6-page 9)

Question 17

In determining whether a corporation is ‘fit and proper’ to hold a dealer’s licence, the
Commission must consider which of the following?

(i) Ownership complies with the Malaysian economic policy

(ii) The reputation of the directors
(iii) The business plan
(iv) The financial status of related corporations

(A) (i) and (ii) only

(B) (ii) and (iv) only
(C) (i), (ii) and (iv) only
(D) All of the above
2-6-32(2-6-page 11)

Question 18

A licence granted under the Securities Industry Act 1983 is required to be renewed
after:

(A) six (6) months

(B) twelve (12) months
(C) two (2) years
(D) three (3) years

2-6-34(2-6-page 11)

Question 19

Under the Securities Industry Act 1983, a licence issued to a corporation may be
subject to all of the following EXCEPT:

(A) transfer to a third party by the Securities Commission

(B) suspension at the discretion of the Securities Commission
(C) revocation at the decision of the Securities Commission
(D) variation subject to the approval of the Securities Commission

1-2-1

Question 20

The Listing Rules Requirements of the Kuala Lumpur Stock Exchange covers the
following matters EXCEPT:

(A) the requirements for listing a company on the Main Board or Second Board of the KLSE
(B) the corporate disclosure policy and standards
(C) the procedure for register of securities
(D) the continuing listing requirements to ensure an informed market is maintained
1-3-14(1-3-page 15)

Question 21

Select the CORRECT statements regarding Non-Dealing Member.

(i) In the case of a natural person, such person does not hold a Dealer’s
Representative’s licence
(ii) In the case of a corporation, has entered into an arrangement to acquire at
least two (2) per cent of the shares of the Member Company
(iii) A Non-Executive director of the Member Company must be at all times a Non-
Dealing Member
(iv) A Non-Dealing Member must get consent from the board of director before
disposing any of his shares in the Member Company

(A) (i) and (iii) only

Taken from Q8, M6S5
(B) (ii) and (iv) only
(20 Oct 2000)
(C) (i), (ii) and (iii) only
(D) All of the above

2-5-19(2-6-page 8)

Question 22

An applicant for an investment representative’s licence must meet all of the following
requirements EXCEPT:

(A) not convicted of a criminal offence

(B) be at least eighteen (18) years of age
(C) not be an undischarged bankrupt
(D) have relevant experience in investment adviser activities

1-4-4(1-4-page 18)

Question 23

A company has issued 200 million of shares at a par value of 50 sen. The company
announces a bonus issues of 2 for 5. What is the total number of shares now issued?

(A) 280 million

(B) 360 million
(C) 500 million
(D) 700 million
Question 24

What is the minimum bid for securities that are priced between RM10.00 to
RM24.90?

(A) Two (2) sen

(B) Five (5) sen Taken from Q2, M6S4 (A)
(C) Ten (10) sen (20 Oct 2000)
(D) Twenty-five (25) sen

2-4-16(1-4)

Question 25

A client of a stockbroking company is entitled to request copies of all of the following

entries in the stockbroking company’s books EXCEPT:

(A) the amount of commission charged to the client over a specified period
(B) the name of the other party in a ‘married’ transaction involving the client
(C) the securities held by the stockbroking company on behalf of the client
(D) the amounts paid into the stockbroking company’s trust account on behalf of the client

New-s.40 SIA

Question 26

The Securities Industry Act 1983 requires a dealer (stockbroker) to inform the client
when dealing in securities as principals. Which of the following statements are
conditions of dealing as principals?

(i) When the dealer enters into a transaction on behalf of any person associated
with the dealer
(ii) The dealer dealing in securities on behalf of a corporation in which he has
controlling interest
(iii) The dealer acts on behalf of a corporation in which his interest and the
interests of his directors together constitute a controlling interest
(iv) When the dealer enters into a transaction for its own subsidiary company

(A) (i) and (ii) only

(B) (iii) and (iv) only
(C) (i), (ii) and (iii) only
(D) All of the above

New-s.43(4) SIA

Question 27

A dealer shall keep records in sufficient details to show separately particulars of all
transactions by the dealer with:

(i) the clients of the dealer

(ii) the dealer himself on dealings on his own account
(iii) the dealer’s representative
(iv) associate of the dealer

(A) (i) and (iv) only

(B) (ii) and (iii) only
(C) (i), (ii) and (iii) only
(D) All of the above

New-s.45 SIA

Question 28

Under the Code on Take-Overs and Mergers, a shareholder must make a mandatory
offer to acquire the company if the shareholder holds more than:

(A) 21 per cent of the voting shares

(B) 33 per cent of the voting shares Taken from Q49, M6S5
(C) 49 per cent of the voting shares (20 Oct 2000)
(D) 51 per cent of the voting shares

New- s.40A

Question 29

The Securities Industry Act 1983 requires an adviser to have a reasonable basis in
making his recommendation to a person. Which of the following constitute elements
of reasonable basis?

(i) The adviser has taken into account the investment objectives of that person
(ii) Consideration has been given on the subject matter of the recommendation by
the adviser
(iii) The adviser has conducted due diligence on the subject matter of the
recommendation
(iv) The financial situation and particular needs of the person considered by the
adviser

(A) (i) and (iv) only

(B) (ii) and (iii) only
(C) (i), (ii) and (iii) only
(D) All of the above
New-s.67 SIA

Question 30

Alpha-X Securities Bhd. has been a licensed dealer since 1995. Upon becoming a
licensed dealer, Alpha-X Securities Bhd. contributed RM30,000 to the compensation
fund. In 1996 and 1997, Alpha-X Securities Bhd contributed RM10,000 annually. In
November 1998, Alpha-X Securities was suspended. Which of the following
statement is CORRECT relating to Alpha-X Securities’s contributions to the
compensation fund? Alpha-X Securities Bhd.:

(A) can request a refund on the yearly payment to the compensation fund but not the initial
RM30,000
(B) will have to let the exchange to use it’s discretion on the percentage of the contribution
that can be refunded
(C) will have to pay RM10,000 to the compensation fund for 1999 before 31 st
December 1999
(D) can request a refund of the yearly payment and need not pay for 1999

New-3.4.3(5)

Question 31

In recommending a client on securities transactions, a Dealer’s Representative must

take into account the suitability of the client as well as the client’s investment
objectives and financial background. Which officer in the organisation is responsible
to ensure that the rule has been complied with?

(A) Executive Director-Operation

(B) Compliance Officer
(C) Audit Officer
(D) Credit Controller

New-3.4.4(2)

Question 32

Which of the following information must be recorded and maintained in opening a

client’s account?

(i) Types of transactions for which the account is approved

(ii) Name of the officer which approved the opening of the account
(iii) Amount of commission charged in respect of each transaction
(iv) The counterparty to the transaction

(A) (i) and (ii) only

(B) (iii) and (iv) only
(C) (i), (ii) and (iii) only
(D) All of the above
New-3.6.3

Question 33

What is the maximum period given to a Member Company to replace a Compliance

Officer who has resigned?

(A) Three (3) months

(B) Six (6) months
(C) Nine (9) months
(D) Twelve (12) months

New-4.4.1(2)

Question 34

Which of the following conditions may be taken by the Committee upon the
declaration of any listed securities as ‘Designated Securities’?

(i) A restriction on all trading of the ‘Designated Securities’

(ii) A restriction of all dealings of ‘Designated Securities’ to delivery before sale
bargains
(iii) A prohibition on any sale of the ‘Designated Securities’ unless the seller
delivers the ‘Designated Securities’ to the Member Company at the time of
entering into the contract sale
(iv) A margin of cover for all dealings relating to such ‘Designated Securities’

(A) (i) and (iii) only

(B) (ii) and (iv) only
(C) (ii), (iii) and (iv) only
(D) All of the above

New-4.8.2(7)

Question 35

Audrey, a Commissioned Dealer’s Representative for Miharja Securities Bhd. transacted securities
valued at RM100,000 for a client on Tuesday. The brokerage charged on the transaction by
Miharja Securities Sdn. Bhd. is RM1,000. What is the maximum amount of commission Audrey is
entitled to?

(A) RM200
(B) RM300
(C) RM400
(D) RM500
New-5.3.4

Question 36

The aggregate outstanding balances in the margin accounts maintained by all clients
of a Member Company shall not exceed ____________of the Adjusted Capital of the
Member Company.

(A) 75 per cent

(B) 100 per cent
(C) 130 per cent
(D) 150 per cent

New-5.3.5

Question 37

Permata Securities Sdn. Bhd. has an Adjusted Capital of RM10 million. Lim, a client of
Permata Securities Sdn. Bhd. has requested for a credit facility for trading of
securities. What is the maximum amount of credit can Permata Securities Sdn. Bhd.
provide for Lim?

(A) RM1 million

(B) RM2.5 million
(C) RM3 million
(D) RM5 million

2-6-29(2-6-page 10)

Question 38

Under the Securities Industry Act 1983, a licensed representative must do all of the
following EXCEPT:

(A) have a reasonable basis for any recommendation made

(B) keep a Register of Securities
(C) provide information at the request of the Securities Commission
(D) keep a record of training courses attended
New-9.5.3(3)

Question 39

As a general rule, a Member Company must calculate and monitor its Capital
Adequacy Ratio and report to the Exchange:

(A) on a daily basis and not later than 4.00 p.m. on the following market day
(B) on a weekly basis, not later than 4.00 p.m. on the first market day of the following week
(C) on a monthly basis, not later than 4.00 p.m. on the tenth calendar day after the end of
the month
(D) on a quarterly basis, not later than 4.00 p.m. of the first week of the following quarter

New-11.1.3

Question 40

In the event where a Member Company has failed to maintain it’s Capital Adequacy
Ratio, which of the following actions may be taken immediately by the Committee?

(i) Prohibit or restrict the Member Company from carrying out or transacting the
business of dealing in securities
(ii) The Committee can appoint one or more persons to perform any duties or
functions with respect to the operation or management of the Member
Company
(iii) The committee can appoint one or more persons for the purpose of advising
the Member Company on any matters relating to the business operation or
management of the Member Company
(iv) To appoint one or more receivers or managers to manage the whole business
affairs and property of the Member Company

(A) (i) and (ii) only

(B) (iii) and (iv) only
(C) (ii) and (iii) only
(D) (i), (ii) and (iii) only

New-11.2.1

Question 41

A Dealer’s Representative was found guilty by the Committee to the act of falsifying
particulars of client’s account. Which of the following actions may be taken by the
Committee:

(i) a reprimand
(ii) a fine
(iii) a suspension of his right to trade
(iv) having his name struck off the register of Dealer’s Representative

(A) (i) only

(B) (ii) only
(C) (i), (ii) and (iii) only
(D) All of the above
New-Schedule 2A

Question 42

Select the CORRECT statements regarding the settlement for a ready basis contract.

(i) In respect of payment by buying clients to Member Companies, not later than
12.30 p.m. by the third (3rd) market day following the contract date
(ii) In respect of payment by the Clearing House to the net selling Member
Companies, not later than 10.00 a.m. on the third (3 rd) market day following
the contract date
(iii) In respect of payment by the net buying Member Companies to the Clearing
House, not later than 10.00 a.m. on the third (3 rd) market day following the
contract date
(iv) In respect of payment by Member Companies to selling clients, not later than
12.30 p.m. on the third (3rd) market day following the contract date

(A) (i), (ii) and (iii) only Taken from M6S3, Q53
(17 July 2001)
(B) (ii), (iii) and (iv) only
(C) (i), (ii) and (iv) only
(D) All of the above

New-Schedule 2A

Question 43
Salmah bought one lot of PQR shares on Tuesday 1/5/1999. The latest date for the
shares to be delivered into her CDS account is:

(A) 9.00 a.m. Friday 4/5/1999

Taken from M6S3, Q54
(B) 3.00 p.m. Monday 7/5/1999 (17 July 2001)
(C) 9.00 a.m. Tuesday 8/5/1999
(D) 9.00 a.m. Wednesday 9/5/1999
New-Schedule 2A

Question 44

Malik bought one lot of KLM shares on Monday 1/5/1999. Malik has to make full
settlement with his broker before:

(A) 4.00 p.m. on Tuesday 9/5/1999

Taken from M6S3, Q56
(B) 12.30 p.m. on Thursday 4/5/1999 (17 July 2001)
(C) 4.00 p.m. on Friday 5/5/1999
(D) 12.30 p.m. on Monday 8/5/1999

New-5.2.3

Question 45

Raj is a director in Prime Securities Sdn. Bhd. He wishes to buy MNO shares through
his trading account with West Securities Sdn. Bhd. As a director of a Member
Company, Raj has to obtain a written consent from the:

(A) board of directors of Prime Securities Sdn. Bhd.

(B) board of directors of West Securities Sdn. Bhd.
(C) Compliance officer of Prime Securities Sdn. Bhd.
(D) Compliance officer of West Securities Sdn Bhd.

New-Article 8.8

Question 46

Jati Securities Sdn. Bhd. was found guilty of breaches of the Rules of KLSE by the
Committee and was fined RM150,000 on 1/5/19XX. Select the CORRECT statement
regarding the failure to abide by the decision imposed by the Committee.

(A) Failure to pay the fine within fourteen (14) days could lead to the suspension of
Jati Securities Sdn. Bhd. from further trading
(B) Jati Securities Sdn. Bhd. must pay the fine within twenty-one (21) days failing which, Jati
Securities Sdn. Bhd. will be suspended as a Member within the stipulated period
determined by the Committee
(C) Jati Securities Sdn Bhd. must pay the fine within fourteen (14) days failing which, Jati
Securities Sdn. Bhd. will be expelled from the Exchange
(D) Failure to pay the fine within seven (7) days would lead to the suspension of Jati Securities
Sdn. Bhd. and face public reprimand
New-3.6.2

Question 47

Which of the following are the duties of a Compliance Officer.

(i) Handling the complaints of clients and reporting the action taken to the board
(ii) Reviewing application forms and documents of accounts opened by clients
(iii) Approving transaction by Directors of Member Company
(iv) Reviewing proprietary trading of the Member Company undertaken by a
Salaried Dealer’s Representative

(A) (i) and (iii) only

(B) (ii) and (iv) only
(C) (i) and (iv) only
(D) All of the above

New-4.1.1

Question 48

Select the CORRECT statements regarding proprietary trading.

(i) Commissioned Dealer’s Representative can undertake proprietary trading on

behalf of the Member Company
(ii) All proprietary trading of the Member Company undertaken by a Salaried
Dealer’s Representative shall be subjected to review by the Compliance
Officer
(iii) No Salaried Dealer’s Representative undertaking proprietary trading on behalf
of the Member Company shall deal on behalf of the Member Company’s clients
(iv) Member Companies shall submit to the Exchange a list of all it’s Dealer’s
Representatives conducting client’s trading and proprietary trading
respectively on a monthly basis to the Exchange

(A) (iii) and (iv) only

(B) (i), (ii) and (iii) only
(C) (ii), (iii) and (iv) only
(D) All of the above
1/39

Question 49

Select the TRUE statements relating to the qualifications, functions and

responsibilities of an Executive Director.

(i) The Executive Director Operations oversees the functions of the Compliance
Officer
(ii) All Executive Directors have to be a member of a recognised stock exchange
(iii) He must pass an examination as stipulated by the exchange and the
Commission
(iv) An Executive Director who resigns must notify the exchange not less than
thirty (30) days in writing

(A) (i) and (iii) only

(B) (ii) and (iv) only
(C) (i), (iii) and (iv) only
(D) (ii), (iii) and (iv) only

New-7.2.2(1)(b)

Question 50

Suria Securities Sdn. Bhd. and Purnama Securities Sdn. Bhd. agreed upon a Direct
Business Transaction on Monday 4.00 p.m. When must this transaction be reported to
the Exchange?

(A) Within fifteen (15) minutes after the transaction is completed

(B) Within fifteen (15) minutes on the following market day
(C) On the following market day, within thirty (30) minutes before commencement of the
morning trading session
(D) On the following market day, within thirty (30) minutes of the morning trading session

Question 51

Arcadia Bhd., a Member Company, has shareholders’ fund (including reserve fund) of
RM9.2 million. Audited profit after tax for the year 1998 is RM50 million. How much
must Arcadia Bhd. transfer into its Reserve Fund?

(A) RM2.5 million

(B) RM5 million Taken from Q16, M6S4
(C) RM7.5 million (20 Oct 2000)
(D) RM10 million
1-3-3(1-3-page 8)

Question 52

Which of the following are TRUE about unlimited companies.

(i) Shareholders are jointly and severally liable without limit for the debts of the
company if it is wound up through insolvency
(ii) They are usually used to passively hold property and investments where
liabilities are unlikely to be incurred
(iii) One member may be required by the company’s liquidator to pay the debts
without seeking a contribution from the other members
(iv) It is possible for an unlimited company to convert to a limited company

(A) (i) and (ii) only

(B) (ii) and (iv) only
(C) (i), (ii) and (iii) only
(D) All of the above

1-3-10(1-3-page 11)

Question 53

Which of the following describes authorised capital.

(A) The maximum amount of share capital as stated in the company’s

memorandum
(B) Part of the share capital that has been issued or alloted to shareholders
(C) The share capital that has been issued or alloted to shareholders
(D) The amount of the share capital that has been subscribed by the share owners

1-4-21(Listing Rules)

Question 54

The following are the relevant criteria for listing under the KLSE Listing Rules
Requirements EXCEPT:

(A) paid-up capital

(B) length of time in business
(C) forecast market share
(D) track record
1-5-21(1-5-page 10)

Question 55

Matching of orders is done during trading by which preferences:

(A) price only

(B) size of spread
(C) price and time
(D) size of order and price

1-5-24(1-5-page 3)

Question 56

Without an approval of extension from the Commission, a dealer shall lodge an

auditor’s report to the Commission within:

(A) one (1) month after the close of the financial year Taken from M6S3, Q33
(B) two (2) months after the close of the financial year (17 July 2001)
(C) three (3) months after the close of the financial year
(D) five (5) months after the close of the financial year

2-2-6

Question 57

A Member may resign from KLSE by giving at least __________ notice.

(A) seven (7) days

(B) fourteen (14) days
(C) twenty-one (21) days
(D) thirty (30) days

Question 58

Four clients of ABC stockbroking company sell 1,000, 2,000, 3,000 and 4,000 of X
securities respectively and one client of ABC buys 20,000 X securities. For the
stockbroking company under SCANS, this will result in:

(A) a net sell of 10,000 shares

(B) a gross sell of 10,000 shares Taken from Q46, M6S4
(C) a net buy of 10,000 shares (20 Oct 2000)
(D) a gross buy of 20,000 shares
2-3-6(2-3)

Question 59

Hassan accepts Woon’s proposal to manage his investment portfolio for him by
sending a letter by post together with a cheque for the first quarter’s fee. Hassan is
deemed to accept Woon’s proposal:

(A) within a reasonable period of the letter being posted

(B) when Woon cashes Hassan’s cheque
(C) when Hassan posts his letter to Woon
(D) when Hassan’s letter is received by Woon

New-9.5.3

Question 60

Every Member Company must maintain the Capital Adequacy Ratio. Which of the
following are conditions prescribing the computation of the Capital Adequacy Ratio?

(i) Its Liquid Capital is at all times greater than its Total Risk Requirements
(ii) Its Gearing must be at all times less than 50 per cent
(iii) Its Core Capital is at all times greater than its Operational Risk Requirements
(iv) Its Current ratio is at least 2:1

(A) (i) and (iii) only

(B) (ii) and (iv) only
(C) (i), (ii) and (iii) only
(D) All of the above