Question 1

Market capitalisation is the market value of a company's assets.

Accepted Answer

A) True 
 B)False

Question 2

The liquidity of listed shares is rather variable, depending generally on the size of the listed firms.

Accepted Answer

A) True 
 B)False

Question 3

High-frequency trading refers to computerised trading that:

Accepted Answer

A) identifies profitable opportunities that are then executed by a trader 
B) profits from positions held for very short periods 
C) executes many high-value transactions 
D) responds to events in a manner described as 'high latency'. 
E) All of these. 
A) identifies profitable opportunities that are then executed by a trader 
B) profits from positions held for very short periods 
C) executes many high-value transactions 
D) responds to events in a manner described as 'high latency'. 
E) All of these.

Question 4

The share market is both the primary and secondary market for shares.

Accepted Answer

A) True 
 B)False

Question 5

Identify the INCORRECT statement regarding 'dark pools'.

Accepted Answer

A) 'Crossings' are arranged by brokers. 
B) 'Crossings' are a new development in share trading in Australia. 
C) 'Dark pools' facilitate large trades with the least possible market price impact. 
D) Trading in 'dark pools' has grown because of advances in technology. 
E) Traders can avoid the exchanges trading fees when trading through 'dark pools'. 
A) 'Crossings' are arranged by brokers. 
B) 'Crossings' are a new development in share trading in Australia. 
C) 'Dark pools' facilitate large trades with the least possible market price impact. 
D) Trading in 'dark pools' has grown because of advances in technology. 
E) Traders can avoid the exchanges trading fees when trading through 'dark pools'.

Question 6

What is a share price index? Explain the calculation of ASX share price indices.What advantage does an accumulation index have over a share price index?

Accepted Answer

A share price index is a measure of the

Question 7

The criteria used by the S&P Australian Index Committee to determine the constituents of an index are:

Accepted Answer

A) market capitalisation, 'free-float', liquidity, shares from a range of sectors and being institutionally tradeable 
B) market capitalisation, 'free-float', liquidity and shares from a range of sectors 
C) market capitalisation, 'free-float' and liquidity 
D) market capitalisation and 'free-float' 
E) market capitalisation. 
A) market capitalisation, 'free-float', liquidity, shares from a range of sectors and being institutionally tradeable 
B) market capitalisation, 'free-float', liquidity and shares from a range of sectors 
C) market capitalisation, 'free-float' and liquidity 
D) market capitalisation and 'free-float' 
E) market capitalisation.

Question 8

Describe the structure of Australia's share market in terms of the number of listed companies, their relative size and their liquidity.

Accepted Answer

The Australian share market has approxim

Question 9

Market discipline refers to:

Accepted Answer

A) the role of ASIC in administering securities law 
B) the influence of share price movements on a company's senior management 
C) the ASX's company listing and disclosure requirements 
D) the decision making processes used by a company's top management and how management is made accountable for its decisions. 
E) None of these. 
A) the role of ASIC in administering securities law 
B) the influence of share price movements on a company's senior management 
C) the ASX's company listing and disclosure requirements 
D) the decision making processes used by a company's top management and how management is made accountable for its decisions. 
E) None of these.

Question 10

If the index level today is 6188 points and the index level yesterday was 6000 points, what was the weighted average of the changes in the share prices between day one and day two?

Accepted Answer

The answer of If the index level today is 6188...

Question 11

Traders with loss-making positions in CFDs are required to make margin payments.

Accepted Answer

A) True 
 B)False

Question 12

Narrow bid-offer spreads are an indicator of an illiquid market.

Accepted Answer

A) True 
 B)False

Question 13

The share market is a market for corporate control.

Accepted Answer

A) True 
 B)False

Question 14

Contracts for difference:

Accepted Answer

A) are only available to institutional investors 
B) are a low risk product that allows an investment in shares without the cost of buying the shares 
C) are exchange traded only 
D) enable investors to trade shares on a geared (or leveraged)basis 
E) have no risk of default 
A) are only available to institutional investors 
B) are a low risk product that allows an investment in shares without the cost of buying the shares 
C) are exchange traded only 
D) enable investors to trade shares on a geared (or leveraged)basis 
E) have no risk of default

Question 15

The main benchmark index for Australia's share market is the:

Accepted Answer

A) All Ordinaries Index (AOI) 
B) ASX 200 
C) ASX 100 
D) S&P 500 
E) SPI. 
A) All Ordinaries Index (AOI) 
B) ASX 200 
C) ASX 100 
D) S&P 500 
E) SPI.

Question 16

The ASX is the Australian Stock Exchange Limited.

Accepted Answer

A) True 
 B)False

Question 17

The central limit order book is the list of limit and market orders that have not yet resulted in a transaction.

Accepted Answer

A) True 
 B)False

Question 18

CHESS settles share trades on a T + 3 basis.

Accepted Answer

A) True 
 B)False

Question 19

High-frequency trading usually involves large-value parcels of shares.

Accepted Answer

A) True 
 B)False

Question 20

A retail sized trade cannot be conducted in a 'dark pool'.

Accepted Answer

A) True 
 B)False

Market capitalisation is the market value of a company's assets.

The liquidity of listed shares is rather variable, depending generally on the size of the listed firms.

High-frequency trading refers to computerised trading that:

The share market is both the primary and secondary market for shares.

Identify the INCORRECT statement regarding 'dark pools'.

What is a share price index? Explain the calculation of ASX share price indices.What advantage does an accumulation index have over a share price index?

The criteria used by the S&P Australian Index Committee to determine the constituents of an index are:

Describe the structure of Australia's share market in terms of the number of listed companies, their relative size and their liquidity.

Market discipline refers to:

If the index level today is 6188 points and the index level yesterday was 6000 points, what was the weighted average of the changes in the share prices between day one and day two?

Traders with loss-making positions in CFDs are required to make margin payments.

Narrow bid-offer spreads are an indicator of an illiquid market.

The share market is a market for corporate control.

Contracts for difference:

The main benchmark index for Australia's share market is the:

The ASX is the Australian Stock Exchange Limited.

The central limit order book is the list of limit and market orders that have not yet resulted in a transaction.

CHESS settles share trades on a T + 3 basis.

High-frequency trading usually involves large-value parcels of shares.

A retail sized trade cannot be conducted in a 'dark pool'.

Overview of the Financial System

The Payments System

Introduction to the Flow of Funds

Funds Management

Authorised Deposit-Taking Institutions

The Stability of Deposit-Taking Institutions

The Money Market

The Bond Market

Shares

Foreign Exchange and Global Capital Markets

Financial Futures

Swaps

Exchange-Traded Options

Filters

Exam 10: The Share Market

Market capitalisation is the market value of a company's assets.

The liquidity of listed shares is rather variable, depending generally on the size of the listed firms.

High-frequency trading refers to computerised trading that:

The share market is both the primary and secondary market for shares.

Identify the INCORRECT statement regarding 'dark pools'.

What is a share price index? Explain the calculation of ASX share price indices.What advantage does an accumulation index have over a share price index?

The criteria used by the S&P Australian Index Committee to determine the constituents of an index are:

Describe the structure of Australia's share market in terms of the number of listed companies, their relative size and their liquidity.

Market discipline refers to:

If the index level today is 6188 points and the index level yesterday was 6000 points, what was the weighted average of the changes in the share prices between day one and day two?

Traders with loss-making positions in CFDs are required to make margin payments.

Narrow bid-offer spreads are an indicator of an illiquid market.

The share market is a market for corporate control.

Contracts for difference:

The main benchmark index for Australia's share market is the:

The ASX is the Australian Stock Exchange Limited.

The central limit order book is the list of limit and market orders that have not yet resulted in a transaction.

CHESS settles share trades on a T + 3 basis.

High-frequency trading usually involves large-value parcels of shares.

A retail sized trade cannot be conducted in a 'dark pool'.

Overview of the Financial System

The Payments System

Introduction to the Flow of Funds

Funds Management

Authorised Deposit-Taking Institutions

The Stability of Deposit-Taking Institutions

The Money Market

The Bond Market

Shares

Foreign Exchange and Global Capital Markets

Financial Futures

Swaps

Exchange-Traded Options

Filters