Chapter 18 Self-test Questions

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. The principal piece of UK securities legislation is?

The Admission and Disclosure Standards correct incorrect

The Financial Services and Markets Act 2000 correct incorrect

The FCA Handbook correct incorrect

The Companies Act 2006 correct incorrect

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. What body is primarily responsible for securities regulation?

The Financial Reporting Council correct incorrect

The Financial Conduct Authority correct incorrect

Companies House correct incorrect

The London Stock Exchange correct incorrect

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. Block 7 of the FCA Handbook consists of three modules (often known as the Listing Regime). Which one of the following is not a block 7 module?

The Principles for Business correct incorrect

The Disclosure Guidance and Transparency Rules correct incorrect

The Listing Rules correct incorrect

The Prospectus Rules correct incorrect

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. If a private company unlawfully offers its shares to the public, several consequences can follow. Which one of the following is not such a consequence?

The court can restrain the company from offering the shares correct incorrect

The court can order the private company to re-register as public correct incorrect

The court can make a remedial order correct incorrect

The allotment of shares will be invalidated correct incorrect

The court can order that the company be wound up correct incorrect

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. What is a placing?

Where a company allots shares to an investment bank, and that bank then offers them to a person or limited group of persons correct incorrect

Where a company offers shares to its existing shareholders correct incorrect

Where a company allots shares to an investment bank and the bank then allots them to the public correct incorrect

Where a company allots shares to the public correct incorrect

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. Identify which of the following are not markets on the London Stock Exchange.

The Main Market correct incorrect

The NEX Exchange correct incorrect

AIM correct incorrect

Nasdaq correct incorrect

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. What is a listed company?

A company whose shares are traded on a stock market correct incorrect

A company that has shares traded on multiple stock markets correct incorrect

A company whose securities are admitted to the official list correct incorrect

A company that forms part of the FTSE 350 correct incorrect

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. Identify the two types of listing that are available.

A standard listing correct incorrect

A cross listing correct incorrect

A dual-listing correct incorrect

A premium listing correct incorrect

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. A company must make an approved prospectus available to the public in two situations. Identify these two situations.

Where a company offers to sell shares to the public through a financial intermediary correct incorrect

Where a company offers transferable securities to the public in the UK correct incorrect

Where a company offers shares to qualified investors only correct incorrect

Where a company requests the admission of transferable securities onto a UK regulated market correct incorrect

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. Which one of the following is not a sanction that can be imposed by the FCA?

Imposition of a fine correct incorrect

A public censure correct incorrect

Suspension of the company's listing correct incorrect

Imposition of a financial penalty correct incorrect

Discontinuing the company's listing correct incorrect