Securities Regulation Code Quiz

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12 Questions

Investment contracts, certificate of interest or participation in a profit sharing agreement, certificate of deposit for a future subscription are examples of ____________.

securities

Certificates of deposit for future subscriptions are evidences of money placed as security for the issuance of future ____________.

subscriptions

Fractional undivided interests in oil, gas or other mineral rights are normally issued certificates of participation or interest in the ____________.

production

Derivatives like options and warrants are financial instruments whose value changes in response to the change in a specified interest rate, security price, commodity price, index of prices or rates, a credit rating or credit index, or similar variable or underlying ____________.

factor

Options are contracts that give the buyer the right, but not the obligation to buy (call options) or sell (put options) an underlying security at predetermined price, called the exercise or strike price, on or before a predetermined date, called the expiry ____________.

date

Real Estate Investments Trust – REIT is a form of ____________.

obligation

Title.– This shall be known as “The Securities Regulation Code ____________

Sec

The State shall establish a socially conscious , free market that regulates itself, encourage the widest participation of ownership in enterprises, enhance the democratization of wealth , promote the development of the capital market, protect investors, ensure full and fair disclosure about securities, minimize if not totally eliminate insider trading and other fraudulent or manipulative devices and practices which create distortions in the free market.To achieve these ends, this Securities Regulation Code is hereby ____________.

enacted

Definition of Terms.– 3.1.“Securities” are shares , participation or interest in a corporation or in a commercial enterprise or profit-making venture and evidence by a certificate, contract, instrument , whether written or electronic in character.It includes: (a) Shares of stock, bonds, debentures, notes, evidence of indebtedness, asset backed securities; Shares of stock are forms of securities representing equity ownership of a corporation, divided up into units which indicate that the owner thereof has proportionate interest in the issuing corporation.An asset–backed security (ABS) is a security , whose income payments and hence value is derived from and collateralized by a specified pool of underlying ____________.

assets

Securities are shares , participation or interest in a corporation or in a commercial enterprise or profit-making venture and evidence by a certificate, contract, instrument , whether written or electronic in character.It includes: (a) Shares of stock, bonds, debentures, notes, evidence of indebtedness, asset backed securities; Shares of stock are forms of securities representing equity ownership of a corporation, divided up into units which indicate that the owner thereof has proportionate interest in the issuing corporation.An asset–backed security (ABS) is a security , whose income payments and hence value is derived from and collateralized by a specified pool of underlying ____________.

assets

Shares of stock are forms of securities representing equity ownership of a corporation, divided up into units which indicate that the owner thereof has proportionate interest in the issuing corporation.An asset–backed security (ABS) is a security , whose income payments and hence value is derived from and collateralized by a specified pool of underlying ____________.

assets

An asset–backed security (ABS) is a security , whose income payments and hence value is derived from and collateralized by a specified pool of underlying ____________.

assets

Study Notes

Investment Contracts and Securities

  • Investment contracts involve a person investing money in a common enterprise with the expectation of profits primarily from the efforts of others.
  • Certificates of deposit for future subscriptions are evidences of money placed as security for the issuance of future subscriptions.

Mineral Rights and Interests

  • Fractional undivided interests in oil, gas, or other mineral rights are normally issued certificates of participation or interest in the production thereof.
  • Certificates of Interest or Participation provide for a participation in the profit of a business venture by the participants of the agreement.

Derivatives

  • A derivative is a financial instrument whose value changes in response to changes in a specified interest rate, security price, commodity price, index of prices or rates, credit rating, or credit index.
  • Derivatives require no initial or little net investment relative to other types of contracts with similar responses to changes in market conditions.
  • Derivatives are settled at a future date and include options and warrants.
  • Options are contracts that give the buyer the right to buy (call options) or sell (put options) an underlying security at a predetermined price on or before a predetermined date.
  • Warrants are rights to subscribe or purchase new shares or existing shares in a company before a predetermined date.

Certificates and Trusts

  • Certificates of assignments, certificates of participation, trust certificates, and voting trust certificates are forms of securities.
  • Trust certificates are obligations issued as security for the repayment of money or property held by a trustee.
  • Real Estate Investments Trust (REIT) allows one or more stockholders of a stock corporation to create a voting trust for the purpose of conferring upon a trustee the right to vote and other rights pertaining to the shares for a period not exceeding five years.

Securities Regulation Code

  • The Securities Regulation Code is established to create a socially conscious, free market that regulates itself, encourages the widest participation of ownership in enterprises, and promotes the development of the capital market.
  • The Code aims to protect investors, ensure full and fair disclosure about securities, and minimize or eliminate insider trading and fraudulent or manipulative devices and practices.
  • Securities include shares, participation, or interest in a corporation or commercial enterprise, and evidence by a certificate, contract, instrument, whether written or electronic in character.
  • Examples of securities include shares of stock, bonds, debentures, notes, evidence of indebtedness, and asset-backed securities.

Test your knowledge about the Securities Regulation Code (Republic Act No. 8799) including its title, definitions, and declaration of state policy.

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