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Question 1 of 30
1. Question
In Raising Capital, which Key Transaction Document for an Issue of Equity Securities is prepared at the start of a deal and is normally produced by the placement agent or underwriter?
Correct
In Raising Capital, Mandate letters outline the policy objectives that each minister will work to accomplish, as well as the pressing challenges they will address in their role. This letter is prepared at the start of a deal and is normally produced by the placement agent or underwriter. It presents the main terms of the issue of equity securities.
Incorrect
In Raising Capital, Mandate letters outline the policy objectives that each minister will work to accomplish, as well as the pressing challenges they will address in their role. This letter is prepared at the start of a deal and is normally produced by the placement agent or underwriter. It presents the main terms of the issue of equity securities.
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Question 2 of 30
2. Question
In Raising Capital, which of the following entity produces the Mandate Letter at the start of a deal?
I. Placement agent.
II. Broker.
III. Underwriter.
IV. Typewriter.Correct
In Raising Capital, Mandate letters outline the policy objectives that each minister will work to accomplish, as well as the pressing challenges they will address in their role. This letter is prepared at the start of a deal and is normally produced by the placement agent or underwriter. It presents the main terms of the issue of equity securities.
Incorrect
In Raising Capital, Mandate letters outline the policy objectives that each minister will work to accomplish, as well as the pressing challenges they will address in their role. This letter is prepared at the start of a deal and is normally produced by the placement agent or underwriter. It presents the main terms of the issue of equity securities.
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Question 3 of 30
3. Question
In Raising Capital, in which case the rights attaching to the preference shares must be arranged in the constitution or articles of association of the issuer?
Correct
In Raising Capital, the rights attaching to the preference shares must be arranged in the constitution or articles of association of the issuer in the case of an issue of preference shares.
Incorrect
In Raising Capital, the rights attaching to the preference shares must be arranged in the constitution or articles of association of the issuer in the case of an issue of preference shares.
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Question 4 of 30
4. Question
In Raising Capital, what is required by the placement agent or underwriter when the equity securities are issued against payment by the placement agent or underwriter?
Correct
In Raising Capital, A legal opinion from the lawyers working on the deal by the placement agent or underwriter when the equity securities are issued against payment by the placement agent or underwriter.
Incorrect
In Raising Capital, A legal opinion from the lawyers working on the deal by the placement agent or underwriter when the equity securities are issued against payment by the placement agent or underwriter.
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Question 5 of 30
5. Question
In Raising Capital, to whom the Comfort Letter will be provided by the issuer’s auditors on the closing of the equity securities issue?
I. To the dealer.
II. To the broker.
III. To the placement agent.
IV. To the underwriter.Correct
In Raising Capital, A comfort letter is a document prepared by an accounting firm assuring the financial soundness or backing of a company. The Comfort Letter will be provided by the issuer’s auditors to the placement agent or underwriter on the closing of the equity securities issue.
Incorrect
In Raising Capital, A comfort letter is a document prepared by an accounting firm assuring the financial soundness or backing of a company. The Comfort Letter will be provided by the issuer’s auditors to the placement agent or underwriter on the closing of the equity securities issue.
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Question 6 of 30
6. Question
In Raising Capital, which letter will be provided by the issuer’s auditors to the placement agent or underwriter on the closing of the equity securities issue?
Correct
In Raising Capital, A comfort letter is a document prepared by an accounting firm assuring the financial soundness or backing of a company. The Comfort Letter will be provided by the issuer’s auditors to the placement agent or underwriter on the closing of the equity securities issue.
Incorrect
In Raising Capital, A comfort letter is a document prepared by an accounting firm assuring the financial soundness or backing of a company. The Comfort Letter will be provided by the issuer’s auditors to the placement agent or underwriter on the closing of the equity securities issue.
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Question 7 of 30
7. Question
In Raising Capital, which of the following statement defines the meaning of Bond?
I. It is a document that creates a debt.
II. It is a document that acknowledges a debt.
III. It is a document that denies a credit.
IV. It is a document that creates a credit.Correct
In Raising Capital, a bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U.
Incorrect
In Raising Capital, a bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U.
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Question 8 of 30
8. Question
In Raising Capital, which of the following document creates or acknowledges a debt?
Correct
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U.
Incorrect
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U.
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Question 9 of 30
9. Question
In Raising Capital, which of the following bond is an international bond that denominated in a currency not native to the country where it is issued?
Correct
In Raising Capital,A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally , a bond is a document which creates or acknowledges a debt,it is basically an I.O.U. A Eurobond is a bond that is an international bond denominated in a currency not native to the country where it is issued.
Incorrect
In Raising Capital,A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally , a bond is a document which creates or acknowledges a debt,it is basically an I.O.U. A Eurobond is a bond that is an international bond denominated in a currency not native to the country where it is issued.
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Question 10 of 30
10. Question
In Raising Capital, Which of the following Bonds are included in Eurobond?
I. Eurodollar bonds.
II. Euroyen bonds.
III. Yankee bonds.
IV. Bonds denominated in Euros.Correct
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U. A Eurobond is a bond that is an international bond denominated in a currency not native to the country where it is issued. Eurodollar bonds, Euroyen bonds and bonds denominated in Euros are included in Eurobond.
Incorrect
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U. A Eurobond is a bond that is an international bond denominated in a currency not native to the country where it is issued. Eurodollar bonds, Euroyen bonds and bonds denominated in Euros are included in Eurobond.
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Question 11 of 30
11. Question
In Raising Capital, which of the following bond is sold in the United States and denominated in US dollars, but are issued by foreign corporations or governments?
Correct
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U.The bonds sold in the United States and denominated in US dollars, but are issued by foreign corporations or governments are Yankee bonds.
Incorrect
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U.The bonds sold in the United States and denominated in US dollars, but are issued by foreign corporations or governments are Yankee bonds.
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Question 12 of 30
12. Question
In Raising Capital, Who issues the Yankee bonds which are sold in the United States and denominated in US dollars?
I. Issued by foreign corporations.
II. Issued by dealers.
III. Issued by local corporations.
IV. Issued by governments.Correct
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U.The bonds sold in the United States and denominated in US dollars, but are issued by foreign corporations or governments are Yankee bonds.
Incorrect
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U.The bonds sold in the United States and denominated in US dollars, but are issued by foreign corporations or governments are Yankee bonds.
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Question 13 of 30
13. Question
In Raising Capital, at what place the Domestic bonds should be sold by an issuer?
Correct
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U. The bonds sold by an issuer within its own country in the country’s currency are Domestic bonds.
Incorrect
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U. The bonds sold by an issuer within its own country in the country’s currency are Domestic bonds.
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Question 14 of 30
14. Question
In Raising Capital, Which of the following bonds are sold by an issuer within its own country in that country’s currency?
Correct
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U. The bonds sold by an issuer within its own country in that country’s currency are Domestic bonds.
Incorrect
In Raising Capital, A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). Bonds are used by companies, municipalities, states, and sovereign governments to finance projects and operations. Normally, a bond is a document that creates or acknowledges a debt, it is basically an I.O.U. The bonds sold by an issuer within its own country in that country’s currency are Domestic bonds.
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Question 15 of 30
15. Question
In Raising Capital, which of the following statement defines the meaning of a Convertible bond?
Correct
In Raising Capital, The bonds that are converted at the holder’s option into ordinary shares of the issuing company, within a specified time period are called Convertible Bonds. It is a fixed-income corporate debt security that yields interest payments but can be converted into a predetermined number of common stock or equity shares.
Incorrect
In Raising Capital, The bonds that are converted at the holder’s option into ordinary shares of the issuing company, within a specified time period are called Convertible Bonds. It is a fixed-income corporate debt security that yields interest payments but can be converted into a predetermined number of common stock or equity shares.
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Question 16 of 30
16. Question
In Raising Capital, which of the following bonds have a credit rating below triple B (BBB)?
I. Perpetual Bonds.
II. High-yield bonds.
III. Junk bonds.
IV. Covered Bonds.Correct
In Raising Capital, High-yield bonds or junk bonds are the Bonds with a credit rating below triple B (BBB). These bonds pay higher interest rates because they have lower credit ratings than investment-grade bonds. High-yield bonds are more likely to default, so they must pay a higher yield than investment-grade bonds to compensate investors.
Incorrect
In Raising Capital, High-yield bonds or junk bonds are the Bonds with a credit rating below triple B (BBB). These bonds pay higher interest rates because they have lower credit ratings than investment-grade bonds. High-yield bonds are more likely to default, so they must pay a higher yield than investment-grade bonds to compensate investors.
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Question 17 of 30
17. Question
In Raising Capital, which of the following bonds pay a higher coupon rate to compensate the investor for an indefinite holding period?
Correct
In Raising Capital, Perpetual bonds, also known as perps or consol bonds, are bonds with no maturity date. These bonds pay a higher coupon rate to compensate the investor for an indefinite holding period.
Incorrect
In Raising Capital, Perpetual bonds, also known as perps or consol bonds, are bonds with no maturity date. These bonds pay a higher coupon rate to compensate the investor for an indefinite holding period.
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Question 18 of 30
18. Question
In Raising Capital, which of the following condition a bond gives the issuer the right to retire the debt, fully or partially, before the maturity date?
I. A bond without a call feature.
II. A bond with a call provision.
III. A bond with a call feature.
IV. A bond without a call provision.Correct
In Raising Capital, A bond gives the issuer the right to retire the debt, fully or partially, before the maturity date with a call feature or call provision. A call provision is a stipulation on the contract for a bond—or other fixed-income instruments—that allows the issuer to repurchase and retire the debt security. If the bond is called, investors are paid any accrued interest defined within the provision up to the date of recall.
Incorrect
In Raising Capital, A bond gives the issuer the right to retire the debt, fully or partially, before the maturity date with a call feature or call provision. A call provision is a stipulation on the contract for a bond—or other fixed-income instruments—that allows the issuer to repurchase and retire the debt security. If the bond is called, investors are paid any accrued interest defined within the provision up to the date of recall.
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Question 19 of 30
19. Question
In Raising Capital, What is the difference between the call price and par value?
Correct
In Raising Capital, A bond gives the issuer the right to retire the debt, fully or partially, before the maturity date with a call feature or call provision. A call provision is a stipulation on the contract for a bond—or other fixed-income instruments—that allows the issuer to repurchase and retire the debt security. The call premium is the difference between the call price and the par value.
Incorrect
In Raising Capital, A bond gives the issuer the right to retire the debt, fully or partially, before the maturity date with a call feature or call provision. A call provision is a stipulation on the contract for a bond—or other fixed-income instruments—that allows the issuer to repurchase and retire the debt security. The call premium is the difference between the call price and the par value.
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Question 20 of 30
20. Question
In Raising Capital, What is the purpose of Sinking-Fund Provision?
Correct
In Raising Capital, A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company that issues debt will need to pay that debt off in the future, and the sinking fund helps to soften the hardship of a large outlay of revenue. To reduce credit risk is the purpose of Sinking-Fund Provision.
Incorrect
In Raising Capital, A sinking fund is a fund containing money set aside or saved to pay off a debt or bond. A company that issues debt will need to pay that debt off in the future, and the sinking fund helps to soften the hardship of a large outlay of revenue. To reduce credit risk is the purpose of Sinking-Fund Provision.
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Question 21 of 30
21. Question
In Raising Capital, What does happen in a standalone issue?
I. The issuer tends to have a clear idea of the funds it requires.
II. It issues a set principal amount of bonds for an unlimited period of time.
III. The issuer tends to have an unclear idea of the funds it requires.
IV. It issues a set principal amount of bonds for a set period of time.Correct
In Raising Capital, Stand-alone bond issues can be structured with fixed or variable interest rates and with or without credit enhancement and/or ratings. The issuer tries to have a clear idea of the funds it requires and simply issues a set principal amount of bonds for a set period of time also known as the maturity of the bond in a standalone issue.
Incorrect
In Raising Capital, Stand-alone bond issues can be structured with fixed or variable interest rates and with or without credit enhancement and/or ratings. The issuer tries to have a clear idea of the funds it requires and simply issues a set principal amount of bonds for a set period of time also known as the maturity of the bond in a standalone issue.
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Question 22 of 30
22. Question
In Raising Capital, Which issue is more commonly used where the issuer’s fund requirements are less clear or for issuers who issue bonds frequently?
Correct
In Raising Capital, The more commonly used where the issuer’s fund requirements are less clear or for issuers who issue bonds frequently is A programme issue. An issuer only issues part of the maximum amount or aggregates a number of bonds or units of bonds under a program.
Incorrect
In Raising Capital, The more commonly used where the issuer’s fund requirements are less clear or for issuers who issue bonds frequently is A programme issue. An issuer only issues part of the maximum amount or aggregates a number of bonds or units of bonds under a program.
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Question 23 of 30
23. Question
In Raising Capital, which of the following form is used for the issuance of bonds?
I. Provisional form.
II. Definitive form.
III. Global form.
IV. National form.Correct
In Raising Capital, Bonds are issued in definitive or global form. Definitive means that, for each individual bond a piece of paper is issued. One piece of paper represents all of the individual bonds in Global form.
Incorrect
In Raising Capital, Bonds are issued in definitive or global form. Definitive means that, for each individual bond a piece of paper is issued. One piece of paper represents all of the individual bonds in Global form.
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Question 24 of 30
24. Question
In Raising Capital, What is the requirement for issuers to have their bonds rated before offering them to investors?
Correct
In Raising Capital, Unrated bonds have not been assessed by credit-rating agencies. There is normally no requirement for issuers to have their bonds rated before offering them to investors.
Incorrect
In Raising Capital, Unrated bonds have not been assessed by credit-rating agencies. There is normally no requirement for issuers to have their bonds rated before offering them to investors.
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Question 25 of 30
25. Question
In Raising Capital, What is the responsibility of a lead manager?
I. He is responsible for arranging the issue and advising on its timing.
II. He is responsible for arranging the issue and advising on its market.
III. He is responsible for arranging the issue and advising on its structure.
IV. He is responsible for arranging the issue and advising on its pricing.Correct
In Raising Capital, The lead manager is generally a bank and it has a role that is similar to that of an arranger for a syndicated loan. Arranging the issue and advising on its timing, structure and pricing is basically the responsibility of The lead manager.
Incorrect
In Raising Capital, The lead manager is generally a bank and it has a role that is similar to that of an arranger for a syndicated loan. Arranging the issue and advising on its timing, structure and pricing is basically the responsibility of The lead manager.
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Question 26 of 30
26. Question
In Raising Capital, Who is initially responsible for arranging the issue and advising on its timing, structure and pricing?
Correct
In Raising Capital, The lead manager is generally a bank and it has a role that is similar to that of an arranger for a syndicated loan. Arranging the issue and advising on its timing, structure and pricing is basically the responsibility of The lead manager.
Incorrect
In Raising Capital, The lead manager is generally a bank and it has a role that is similar to that of an arranger for a syndicated loan. Arranging the issue and advising on its timing, structure and pricing is basically the responsibility of The lead manager.
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Question 27 of 30
27. Question
In Getting Listed, which of the following method is used by a company that is looking for a listing on the Mainboard?
I. By way of a primary listing.
II. By way of a secondary listing.
III. By way of a Catalyst Listing.
IV. By way of a Home Exchange.Correct
In Getting Listed, The Mainboard caters to the needs of established enterprises. Mainboard-listed companies enjoy the prestige of an established market place and access to the widest range of institutional and retail investors. By the way of a primary listing or a secondary listing, a company may look for a listing on the Mainboard.
Incorrect
In Getting Listed, The Mainboard caters to the needs of established enterprises. Mainboard-listed companies enjoy the prestige of an established market place and access to the widest range of institutional and retail investors. By the way of a primary listing or a secondary listing, a company may look for a listing on the Mainboard.
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Question 28 of 30
28. Question
In Getting Listed, which of the following list will be considered if Companies that do not meet the quantitative listing criteria for the SGX-ST Mainboard?
Correct
In Getting Listed, The Mainboard caters to the needs of established enterprises. Mainboard-listed companies enjoy the prestige of an established market place and access to the widest range of institutional and retail investors. Catalist Listing will be considered if Companies do not meet the quantitative listing criteria for the SGX-ST Mainboard.
Incorrect
In Getting Listed, The Mainboard caters to the needs of established enterprises. Mainboard-listed companies enjoy the prestige of an established market place and access to the widest range of institutional and retail investors. Catalist Listing will be considered if Companies do not meet the quantitative listing criteria for the SGX-ST Mainboard.
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Question 29 of 30
29. Question
In Getting Listed, What will be the listing criteria if a company looking for a list on the SGX Mainboard or Catalist?
I. Listed issuer is financially sound.
II. Listed issuer has good nonmaterial governance.
III. Listed issuer is practically sound.
IV. Listed issuer has good corporate governance.Correct
In Getting Listed, A listed issuer is financially sound and has good corporate governance is the main criteria if a company is seeking to be on the list on the SGX Mainboard or Catalist.
Incorrect
In Getting Listed, A listed issuer is financially sound and has good corporate governance is the main criteria if a company is seeking to be on the list on the SGX Mainboard or Catalist.
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Question 30 of 30
30. Question
In Getting Listed, How much percentage of shares of an issuer is required by The Mainboard Rules to be held in public hands just after the IPO?
Correct
In Getting Listed, The Mainboard caters to the needs of established enterprises. Mainboard-listed companies enjoy the prestige of an established market place and access to the widest range of institutional and retail investors. The minimum percentage of shares of an issuer is required by The Mainboard Rules to be held in public hands just after the IPO.
Incorrect
In Getting Listed, The Mainboard caters to the needs of established enterprises. Mainboard-listed companies enjoy the prestige of an established market place and access to the widest range of institutional and retail investors. The minimum percentage of shares of an issuer is required by The Mainboard Rules to be held in public hands just after the IPO.