FIN 346 Chapter 3

Which of the following is NOT a function of Bursa Malaysia as a stock exchange?

• Providing a platform for buying and selling securities

• Regulating the issuance of new currency notes

• Facilitating capital raising for companies

• Ensuring transparency and fair market practices

In the primary market, what is the main purpose for companies to issue securities?

• To allow public trading of shares

• To increase market volatility

• To raise capital for business expansion

• To establish partnerships with banks

How does the secondary market benefit investors?

• By offering a platform to trade existing securities

• By creating a safe environment free from market fluctuations

• By providing direct investment options in private companies

• By avoiding regulatory oversight

Why might a company choose to list on Bursa Malaysia?

• To become eligible for government grants

• o increase its private shareholder base

• To raise capital and enhance corporate reputation

• To avoid public reporting requirements

Which of the following is the main index of Bursa Malaysia that tracks the performance of the top 30 companies?

• FTSE Bursa Malaysia KLCI

• Dow Jones Industrial Average

• S&P 500 Index

• Nikkei 225

In Malaysia, which market allows investors to buy and sell securities that have already been issued?

• Primary Market

• Secondary Market

• Futures Market

• OTC Market

What role does Bursa Malaysia play in the Malaysian economy?

• Acts as a direct lender to corporations

• Supports economic growth by facilitating capital raising and investment

• Collects taxes on all trading activities
  

• Controls monetary policy

What type of services does Bursa Malaysia Berhad provide through its subsidiaries?

• Only trading services

• Trading, clearing, settlement, and depository services

• Auditing and compliance services

• Loan and mortgage services

Which of the following acts governs the Malaysian capital market?

• Malaysian Trade Act 2005

• Securities Exchange Act 2008

• Companies Act 2010

• Capital Markets and Services Act 2007

What is the primary purpose of the secondary market on Bursa Malaysia?

• To issue new securities

• To provide loans to companies

• To regulate public companies

• To allow trading of existing securities