Question 1

ASX Trade is a system which:

Accepted Answer

A)  Uses an open interface to perform Automated Order Processing
B)  Allows multi- order transactions
C)  Is run by the ASX and is accessible to brokers and trading organisations inside and outside Australia
D)  A and B only
E)  All of the aboveF) All of the above
G) A) and C)

Question 2

The pre- opening phase is the only time that bids and offers may overlap.At all other times such overlapping orders would be executed.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following statements best describes principal trading?

Accepted Answer

A)  A trade which a broker executes at the request of an underwriter
B)  A trade which a broker executes on behalf of a client
C)  A trade which a broker executes on their own behalf
D)  Both B and CE) None of the above
F) C) and D)

Question 4

In addition to equity securities,ASX is also used to trade corporate bonds,hybrid securities,warrants and exchange- traded funds.

Accepted Answer

A) True 
 B)False

Question 5

Sell market order is an order to do which of the following?

Accepted Answer

A)  Sell a parcel of shares at the highest bid price.
B)  Sell a parcel of shares at the highest offer price.
C)  Sell a parcel of shares at the lowest bid price.
D)  Sell a parcel of shares at the lowest offer price.E) A) and B)
F) A) and C)

Question 6

Stocks are opened randomly within +/- 30 seconds of the series of established opening times determined by the ASX and based upon the first letter of the ASX code of the stock.

Accepted Answer

A) True 
 B)False

Question 7

What is the objective of a passive fund manager?

Accepted Answer

A)  To earn returns similar to the market index by adopting a 'buy and hold' strategy
B)  To earn return similar to the 10- year bond rate by buying and selling treasury notes in an effort to realise capital gains
C)  To outperform the index by buying and selling shares in an effort to realise capital gains
D)  None of the aboveE) B) and D)
F) A) and B)

Question 8

A single order (that is an order not part of a portfolio) can be placed off market if it is worth more than what amount?

Accepted Answer

A)  $800,000
B)  $400,000
C)  $600,000
D)  $200,000
E)  $1,000,000F) A) and B)
G) A) and C)

Question 9

Research by Aitken and Swan (1993)has shown that the bulk of brokers' business is principal trading.

Accepted Answer

A) True 
 B)False

Question 10

How are orders placed upon ASX Trade prioritised?

Accepted Answer

A)  By time only
B)  By price then time
C)  By price only
D)  By time then priceE) C) and D)
F) None of the above

Question 11

Which of the following is not a participant in a share trading transaction?

Accepted Answer

A)  The broker
B)  The Australian Securities and Investments Commission
C)  The buying and selling parties
D)  The ASXE) A) and D)
F) A) and C)

Question 12

Which if the following is not a function of the stock market?

Accepted Answer

A)  Assist the price discovery process.
B)  Facilitate liquidation of shareholdings.
C)  Support the primary market.
D)  Ensure the direct raising of equity capital by companies.E) All of the above
F) A) and B)

Question 13

Which of the following best describes a limit order?

Accepted Answer

A)  An order to buy or sell shares at the prevailing market price
B)  An order to buy shares directly from the issuing company
C)  An order to buy or sell shares at a specified price
D)  An order to buy or sell shares off- marketE) A) and D)
F) B) and C)

Exam 9: Australian Equities Market

Which of the following is not a participant in a share trading transaction?

Correct Answer
verified

Which of the following best describes a limit order?

Correct Answer
verified

Which of the following statements best describes principal trading?

Correct Answer
verified

Sell market order is an order to do which of the following?

Correct Answer
verified

A single order (that is an order not part of a portfolio) can be placed off market if it is worth more than what amount?

Correct Answer
verified

Stocks are opened randomly within +/- 30 seconds of the series of established opening times determined by the ASX and based upon the first letter of the ASX code of the stock.

Correct Answer
verified

Research by Aitken and Swan (1993)has shown that the bulk of brokers' business is principal trading.

Correct Answer
verified

In addition to equity securities,ASX is also used to trade corporate bonds,hybrid securities,warrants and exchange- traded funds.

Correct Answer
verified

The pre- opening phase is the only time that bids and offers may overlap.At all other times such overlapping orders would be executed.

Correct Answer
verified

Which if the following is not a function of the stock market?

Correct Answer
verified

ASX Trade is a system which:

Correct Answer
verified

What is the objective of a passive fund manager?

Correct Answer
verified

How are orders placed upon ASX Trade prioritised?

Correct Answer
verified

Exam 9: Australian Equities Market

Which of the following is not a participant in a share trading transaction?

Correct AnswerverifiedShow Answer

Which of the following best describes a limit order?

Correct AnswerverifiedShow Answer

Which of the following statements best describes principal trading?

Correct AnswerverifiedShow Answer

Sell market order is an order to do which of the following?

Correct AnswerverifiedShow Answer

A single order (that is an order not part of a portfolio) can be placed off market if it is worth more than what amount?

Correct AnswerverifiedShow Answer

Stocks are opened randomly within +/- 30 seconds of the series of established opening times determined by the ASX and based upon the first letter of the ASX code of the stock.

Correct AnswerverifiedShow Answer

Research by Aitken and Swan (1993)has shown that the bulk of brokers' business is principal trading.

Correct AnswerverifiedShow Answer

In addition to equity securities,ASX is also used to trade corporate bonds,hybrid securities,warrants and exchange- traded funds.

Correct AnswerverifiedShow Answer

The pre- opening phase is the only time that bids and offers may overlap.At all other times such overlapping orders would be executed.

Correct AnswerverifiedShow Answer

Which if the following is not a function of the stock market?

Correct AnswerverifiedShow Answer

ASX Trade is a system which:

Correct AnswerverifiedShow Answer

What is the objective of a passive fund manager?

Correct AnswerverifiedShow Answer

How are orders placed upon ASX Trade prioritised?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified