Podcast
Questions and Answers
What is the primary method used to calculate market capitalization?
What is the primary method used to calculate market capitalization?
- Annual sales figures multiplied by total assets
- Number of employees multiplied by market price of shares
- Total assets divided by number of shares
- Current market price of a share multiplied by shares outstanding (correct)
One of the roles of the stock exchange is to facilitate the growth of companies through what means?
One of the roles of the stock exchange is to facilitate the growth of companies through what means?
- Offering tax incentives for startups
- Providing loans for infrastructure development
- Acquisition through mergers or takeover bids (correct)
- Direct government funding
How does the stock exchange help small investors?
How does the stock exchange help small investors?
- By providing exclusive access to private equity
- By allowing investment only in large corporations
- By guaranteeing high returns on investments
- By enabling individuals to purchase shares they can afford (correct)
What does a decline in stock prices often indicate about the economy?
What does a decline in stock prices often indicate about the economy?
What is one function of corporate governance as indicated by public stock exchanges?
What is one function of corporate governance as indicated by public stock exchanges?
How does market capitalization serve the investment community?
How does market capitalization serve the investment community?
What is one way that the stock exchange mobilizes savings for investment?
What is one way that the stock exchange mobilizes savings for investment?
What is another term commonly used to refer to market capitalization?
What is another term commonly used to refer to market capitalization?
What is the primary role of Bursa Malaysia Bhd?
What is the primary role of Bursa Malaysia Bhd?
What type of companies is listed on the Main Market of Bursa Malaysia?
What type of companies is listed on the Main Market of Bursa Malaysia?
Which of the following is NOT a function of Bursa Malaysia?
Which of the following is NOT a function of Bursa Malaysia?
What is one of the factors influencing stock market performance according to Bursa Malaysia's objectives?
What is one of the factors influencing stock market performance according to Bursa Malaysia's objectives?
What is the primary objective of implementing a Corporate Disclosure Policy by Bursa Malaysia?
What is the primary objective of implementing a Corporate Disclosure Policy by Bursa Malaysia?
Which type of market is characterized by listing technology-based companies?
Which type of market is characterized by listing technology-based companies?
What is the purpose of Bursa Malaysia's enforcement actions?
What is the purpose of Bursa Malaysia's enforcement actions?
What is a key reason for companies to consider listing on Bursa Malaysia?
What is a key reason for companies to consider listing on Bursa Malaysia?
What is one of the criteria for a company to be included in the FTSE Bursa Malaysia KLCI?
What is one of the criteria for a company to be included in the FTSE Bursa Malaysia KLCI?
Which index is known for tracking the largest companies in the Main Market by market capitalization?
Which index is known for tracking the largest companies in the Main Market by market capitalization?
Which factor does NOT influence stock market performance?
Which factor does NOT influence stock market performance?
Which year is considered the base year for the FTSE Bursa Malaysia KLCI?
Which year is considered the base year for the FTSE Bursa Malaysia KLCI?
What is the purpose of the Corporate Disclosure Policy?
What is the purpose of the Corporate Disclosure Policy?
Which of the following indices focuses on smaller companies within the Malaysian stock market?
Which of the following indices focuses on smaller companies within the Malaysian stock market?
What sector index was established in 1992?
What sector index was established in 1992?
Which of the following is a tradable index in Bursa Malaysia?
Which of the following is a tradable index in Bursa Malaysia?
Which of the following indices is known as a benchmark index?
Which of the following indices is known as a benchmark index?
What aspect of a company is not a consideration for conducting an IPO?
What aspect of a company is not a consideration for conducting an IPO?
What is the main responsibility of a listed company regarding the corporate disclosure policy?
What is the main responsibility of a listed company regarding the corporate disclosure policy?
Which situation requires immediate public disclosure by a listed company?
Which situation requires immediate public disclosure by a listed company?
What is one exception to the policy requiring immediate public disclosure of material information?
What is one exception to the policy requiring immediate public disclosure of material information?
How should material information be disseminated to ensure it reaches the public effectively?
How should material information be disseminated to ensure it reaches the public effectively?
What does the Policy on Insider Trading specifically address?
What does the Policy on Insider Trading specifically address?
Which of these policies focuses on managing rumors in the market?
Which of these policies focuses on managing rumors in the market?
What type of information should not be disclosed immediately according to the policy?
What type of information should not be disclosed immediately according to the policy?
What is one key aspect of the Policy on Immediate Public Disclosure of Material Information?
What is one key aspect of the Policy on Immediate Public Disclosure of Material Information?
What is expected of insiders regarding trading after material information has been released?
What is expected of insiders regarding trading after material information has been released?
What penalty may be imposed on a listed company for breaching listing requirements?
What penalty may be imposed on a listed company for breaching listing requirements?
Which measure is NOT considered a penalty for breaches of listing requirements?
Which measure is NOT considered a penalty for breaches of listing requirements?
What must a seller provide to their broker at the time of entering into a sale contract if prohibited from selling shares?
What must a seller provide to their broker at the time of entering into a sale contract if prohibited from selling shares?
What type of trading activity is discouraged for insiders even after information has been released?
What type of trading activity is discouraged for insiders even after information has been released?
What must a listed company do upon becoming aware of material information related to a rumour or report?
What must a listed company do upon becoming aware of material information related to a rumour or report?
In the context of unusual market actions, what should a listed company do?
In the context of unusual market actions, what should a listed company do?
What constitutes unwarranted promotional disclosure activity for a listed company?
What constitutes unwarranted promotional disclosure activity for a listed company?
What is forbidden regarding insider trading?
What is forbidden regarding insider trading?
Which action is NOT expected of a listed company in response to unusual market activity?
Which action is NOT expected of a listed company in response to unusual market activity?
What kind of disclosures should a listed company avoid?
What kind of disclosures should a listed company avoid?
How should a listed company handle unverified reports from the public?
How should a listed company handle unverified reports from the public?
What is a critical reason for a listed company to publicly clarify material information?
What is a critical reason for a listed company to publicly clarify material information?
Flashcards
Bursa Malaysia's role
Bursa Malaysia's role
Bursa Malaysia is the Malaysian stock exchange, regulating the capital market and ensuring a fair, orderly securities market.
ACE Market Listing
ACE Market Listing
A listing category for newer or growing companies, particularly technology companies.
Main Market Listing
Main Market Listing
A listing category for established, large companies on Bursa Malaysia.
Primary Market
Primary Market
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Secondary Market
Secondary Market
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IPO
IPO
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Stock Market Stability
Stock Market Stability
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Listing Requirements
Listing Requirements
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Market Capitalization
Market Capitalization
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Market Stability
Market Stability
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Stock Exchange Function: Raising Capital
Stock Exchange Function: Raising Capital
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Stock Exchange Function: Mobilizing Savings
Stock Exchange Function: Mobilizing Savings
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Stock Exchange Function: Facilitating Growth
Stock Exchange Function: Facilitating Growth
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Stock Exchange Benefit: Investment Opportunities
Stock Exchange Benefit: Investment Opportunities
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Stock Exchange as Economic Indicator
Stock Exchange as Economic Indicator
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Stock Exchange and Corporate Governance
Stock Exchange and Corporate Governance
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Material Information
Material Information
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Immediate Public Disclosure
Immediate Public Disclosure
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Public Dissemination
Public Dissemination
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Why Immediate Disclosure?
Why Immediate Disclosure?
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Who Gets the Information First?
Who Gets the Information First?
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Dissemination Methods
Dissemination Methods
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Purpose of Disclosure Policy
Purpose of Disclosure Policy
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Unwarranted Promotional Disclosure
Unwarranted Promotional Disclosure
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What must a listed company do if rumors appear?
What must a listed company do if rumors appear?
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Unusual Market Activity
Unusual Market Activity
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Company's responsibility during unusual market activity
Company's responsibility during unusual market activity
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Exaggerated Reports and Predictions
Exaggerated Reports and Predictions
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Insider Trading
Insider Trading
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Insider Trading Rule
Insider Trading Rule
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Reason for Listing
Reason for Listing
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IPO Factors
IPO Factors
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FTSE Bursa Malaysia KLCI
FTSE Bursa Malaysia KLCI
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FTSE Bursa Malaysia Index Series
FTSE Bursa Malaysia Index Series
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Tradable Indices
Tradable Indices
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Benchmark Indices
Benchmark Indices
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Corporate Disclosure Policy
Corporate Disclosure Policy
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Economic Performance
Economic Performance
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Interest Rates
Interest Rates
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Reported Earnings
Reported Earnings
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Penalties for Listing Breaches
Penalties for Listing Breaches
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Study Notes
Bursa Malaysia BHD - Chapter 3
- Objectives of the chapter include: explaining the structure of Bursa Malaysia Bhd; functions and roles of the stock exchange (primary and secondary markets); reasons for listing; Bursa Malaysia Indices; factors influencing stock market performance; factors related to initial public offerings (IPOs); listing requirements for Main Market and ACE Market; and corporate disclosure policy.
Bursa Malaysia - Description
- Bursa Malaysia (KLSE) is a stock exchange in Kuala Lumpur, Malaysia. It's one of the largest bourses in ASEAN.
- It regulates the Malaysian capital market, ensuring a fair and orderly securities and derivatives market.
- It maintains orderly dealings in securities; clear and efficient clearing and settlement processes; issuing rules for regulated entities (issuers, directors, advisers, etc.); and administering compliance with those rules.
- It actively monitors listed issuers and brokers, conducting surveillance over trading activities.
Structure of Bursa Malaysia
- Bursa Malaysia Berhad (100%): Established in 2003, responsible for providing and managing the securities exchange.
- Bursa Malaysia Securities Berhad (100%): Established in 2003, involved in providing and managing securities exchange activities.
- Bursa Malaysia Derivatives Berhad (75%): Established in 1993, managing futures and option exchanges.
- Bursa Malaysia Derivatives Clearing Berhad (100%): Established in 1995, providing clearing house services for futures and option exchange.
- Labuan International Financial Exchange Inc. (100%): Established in 1999, involved in offshore financial exchanges.
- Other entities mentioned include Bursa Malaysia Depository Sdn. Bhd., Bursa Malaysia Depository Nominees Sdn. Bhd.; Bursa Malaysia Information Sdn. Bhd.; Bursa Malaysia Bonds Sdn. Bhd.; Bursa Malaysia Islamic Services Sdn. Bhd. and listed companies trading on the Main and ACE Markets.
Listing Under Bursa Malaysia
- Main Board: For large, well-established companies (e.g., Petronas, Nestle).
- Main Market: For established companies.
- ACE Market: For technology-based and emerging companies.
- MESDAQ: A segment of the Main Market.
- KLCI: A key index for performance measurement.
- FTSE Bursa Malaysia KLCI: Comprises the largest 30 companies in the Main Market, based on market capitalization and meeting eligibility requirements from FTSE Bursa Malaysia Ground Rules.
Market Capitalization
- The total market value of all a company's outstanding shares.
- Calculated by multiplying the shares outstanding by the current market price of a share.
- Used by investors to assess company size.
Roles & Functions of Stock Exchange
- Raising money for businesses: Stock exchanges provide a platform for companies to raise capital by selling shares.
- Mobilizing savings for investment: Individuals investing in shares leads to rational allocation of resources and promotes business activities.
- Facilitating company growth: Takeovers and mergers are common ways for companies to expand using stock markets.
- Creating investment opportunities for small investors: Smaller investors can also participate in buying and selling shares.
- Barometer of the economy: Share prices reflect the broader economic climate; movements can indicate economic trends.
- Corporate Governance: Companies' ownership structures and shareholder expectations result in improved management standards to satisfy needs.
Reason for Listing
- Confidence
- Expansion
- Additional Funds
- Higher Profile.
Factors to Consider for IPOs
- Timing
- Corporate/Capital restructuring
- Pricing
- Method of Listing
- Underwriting the issue
Bursa Malaysia Index Series
- FTSE Bursa Malaysia KLCI (formerly KLCI): Various indexes exist, focusing on industries and sectors, for tracking performance.
Tradable Indices
- FTSE Bursa Malaysia KLCI Index
- FTSE Bursa Malaysia Mid 70 Index
- FTSE Bursa Malaysia Top 100 Index
- FTSE Bursa Malaysia Hijrah Shariah Index
- FTSE Bursa Malaysia Asian Palm Oil Plantation Index (USD & MYR)
Benchmark Indices
- FTSE Bursa Malaysia EMAS Index
- FTSE Bursa Malaysia Small Cap Index
- FTSE Bursa Malaysia Fledging Index
- FTSE Bursa Malaysia EMAS Shariah Index
- FTSE Bursa Malaysia ACE Index
- FTSE Bursa Malaysia Palm Oil Plantation Index
Factors Influencing Stock Market Performance
- Economic Performance
- Interest Rates
- Reported Earnings
- Oil Prices
- Political Environment
- International Environment
- Entry of Institutional Investors
Corporate Disclosure Policy
- Providing public information for informed investing.
- Ensuring equal access to information for investors.
- A duty for listed companies to adhere to corporate disclosure policies.
- 6 Policies are mentioned: 1. Policy on Insider Trading 2. Policy on Immediate Public Disclosure of Material Information 3. Policy on Public Dissemination 4. Policy on Clarification of Rumors 5. Policy on Response to Unusual Market Action 6. Policy on Unwarranted Promotional Disclosure
Penalties for Listing Requirements Breach
- Public reprimand
- Suspension of trading (temporary)
- Prohibition of sales unless the seller delivers required documentation.
- Delisting of companies.
- Other penalties as decided by Bursa Malaysia authorities
Additional Information
- Specific dates and parts of various chapter discussions.
- URLs are also mentioned.
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Description
This quiz covers Chapter 3 of Bursa Malaysia BHD, detailing the structure and functions of the stock exchange, including its primary and secondary markets. Explore the reasons for listing, Bursa Malaysia Indices, and the factors influencing stock market performance, particularly regarding IPOs and listing requirements. Gain insights into corporate disclosure policies and market regulations in Malaysia.