Financial Instruments and Securities Regulation Quiz
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Questions and Answers

Which of the following is an example of a security?

  • Real estate property
  • Collectible stamps
  • Gold jewelry
  • Stocks (correct)
  • What is a certificate of ownership?

  • A document that proves ownership of a business
  • A document that proves ownership of a car
  • A document that proves ownership of a house
  • A document that proves ownership of stocks (correct)
  • What does RA NO. 8799 refer to?

  • A law regulating the sale of real estate
  • A law regulating the sale of cars
  • A law regulating the sale of securities (correct)
  • A law regulating the sale of jewelry
  • What does a bond represent?

    <p>Creditor relationship with a governmental body or corporation</p> Signup and view all the answers

    What are asset-backed securities?

    <p>Securities backed by physical assets</p> Signup and view all the answers

    Which of the following is an example of a security?

    <p>Stocks</p> Signup and view all the answers

    What does the term 'fungible' mean in relation to securities?

    <p>Interchangeable and replaceable</p> Signup and view all the answers

    Which of the following is NOT considered a security?

    <p>Commodity futures</p> Signup and view all the answers

    What does RA NO. 8799 refer to?

    <p>A regulation governing securities trading</p> Signup and view all the answers

    What does a certificate of ownership represent?

    <p>Ownership of a corporation</p> Signup and view all the answers

    Study Notes

    Securities and Ownership

    • A security is a financial instrument that holds monetary value and can be traded. Common examples include stocks, bonds, and options.
    • A certificate of ownership represents legal proof of ownership in tangible or intangible assets, often associated with shares in a company or funds.

    RA NO. 8799

    • RA NO. 8799 is the Securities Regulation Code of the Philippines, establishing governance for securities trading and protecting investor rights.

    Bonds

    • A bond represents a fixed income investment in which an investor loans money to an entity (government or corporation) for a defined period at a fixed interest rate.

    Asset-Backed Securities (ABS)

    • Asset-backed securities are financial securities backed by a pool of assets, such as mortgages, car loans, or credit card debt, providing a way for institutions to obtain funding while offering investors returns based on the cash flows from the underlying assets.

    Fungibility in Securities

    • The term 'fungible' refers to goods or assets that are interchangeable because each unit is equivalent in value and function. In relation to securities, it means that shares or bonds can be exchanged or traded without any loss of value.

    Exclusions from Securities

    • Certain financial instruments, such as personal property or collectibles, are not considered securities due to their unique nature and lack of tradeability within established financial markets.

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    Description

    Test your knowledge on financial instruments and securities regulation with this quiz! Learn about stocks, bonds, options contracts, and more as you explore the world of trading in the open market. Challenge yourself to understand the Securities Regulation Code and the different types of certificates of indebtedness and ownership. Sharpen your understanding of shares, participation, and interests in corporations and profit-making ventures. Take the quiz now and expand your knowledge of securities!

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