1) ZZZ Stock Broking Company Pte Ltd has 2000 lots of ABC shares in its stock account. Recommendation of ABC shares by its research department is: (A) Strictly prohibited due to conflict of interest (B) Allowed as there is proper Chinese walls between the dealing and research department (C) Allowed provided a statement on the Company's interest in ABC shares is included and the font is not smaller than the remainder of the written communication (D) Allowed provided a concise statement of the nature of the Company's interest included and the font is not smaller than the remainder of the written communication (A) After due date (B) On purchase date (C) One day after due date (D) One day after purchase date 3) If a Trading Representative is subject to SGX ‐ ST disciplinary committee, he can appoint a lawyer to defend him. True or False? (A) TRUE (B) FALSE 4) Who is the most suitable person to conduct a compliance check on a Trading Member? (A) Internal Auditor who reports to a person independent of sales, operations and dealing functions (B) Compliance officer who reports directly to the Head of Operations (C) Head of Dealing as he can monitor the activities in the trading (D) Head of Corporate Finance Department 5) Does a client need the approval from the designated director of the Member Company to open a trading account? (A) Yes (B) No 6) Upon acquiring any interest in securities, a Trading Member must enter the particulars of the securities in the Register of Securities within: (A) 30 days (B) 14 days 2) CDP will mail contract statements or contract notes to clients:
(C) 7 days (D) 3 days 7) Licensed Representatives should keep records of: (A) Time of receipt (B) Time of amendment (C) Time of cancellation (D) All of the above 8) Paul received an order to buy 10 lots of XYZ SSF at $10.10. At the same time, he also received another order to sell 2 lots of XYZ SSF at $10.10. The current bid and offer price of XYZ SSF is $10.00 and $10.40 respectively. Which of the following statement regarding the above is true? (A) Paul must key in sell order first because it is only 2 lots compared to 10 lots of buy order (B) Paul must key in the buy side first because it is better than the prevailing bid price (C) Paul must key in buy side first because it is a larger order compared to the sell side (D) Paul must key in sell order first as it is 30 ticks better than the prevailing offer price while the buy order is only 10 ticks better than the prevailing bid price 9) Which of the following is NOT one of the stages of Money Laundering? (A) Layering (B) Placement (C) Integration (D) Legitimization 10)A customer who is away on a business trip failed to settle his purchases by due date. However, he assured the Trading Member that he will be back by the 2nd day after due date and will pay up then. The Trading Member: (A) Must force sell the shares on due date as the customer failed to settle by due date (B) Must force sell the shares on the next business day after the due date as required under SGX ‐ ST rules (C) May consider extending the settlement period up to 2 business days after due date since there is reasonable assurance from the customer (D) May consider extending the settlement period for 1 business day after the due date as there is reasonable assurance from the customer that he will settle by the 2nd day after due date
11)Stamp duty, Clearing fee, Brokerage charges as agreed between the customer and Trading Member must be: (A) Borned by the Trading Member (B) Disclosed and borned by the customer (C) Disclosed and borned by the Trading Representative servicing the customer (D) Shared by both the Trading Member and the customer 12)You received an order from a customer to buy 10 lots of ABC shares at $80. ABC shares are currently trading between $4 to $5. You should: (A)...
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