HKSI Paper 8 (Securities) English Free Trial

Nikkei indices is a series of indices that primarily track the Japanese stock market, the most widely watched in Japan is the Nikkei 225 Stock Average

The most common forms of warrants are equity and derivative warrants.

Fundamentals of bond pricing include the time value of money, yield, coupon.

The main characteristics of the securities in the pilot programme
I. They are not regulated as listings on the SEHK’s Main Board or Growth Enterprise Market
II. They are admitted on the SEHK for trading only
III. They are traded under the regulation of Hong Kong law and the SEHK rules

Nikkei indices is a series of indices that primarily track the Japanese stock market, the most widely watched in Japan is the Nikkei 225 Stock Average

In the day-to-day interaction with investors and clients, brokers have a number of responsibilities, regulated by the SFC, which have been established to protect the interests of investors.
These responsibilities include:
I. Provision of information to clients: a broker must issue a contract note to the client for each securities transaction, provide a monthly statement and acknowledge in writing the receipt of any securities. The broker must also disclose details of all fees charged for rendering securities services.
II. Segregation of clients’ assets: a broker is required to separate all client monies from his own and deposit them in a trust account maintained with an authorized financial institution, and not to use the trust funds to repay debt or for any unauthorized activities.
III. Regulatory supervision: a broker must comply with all applicable regulatory requirements and agree to have regular routine and special inspections

The international indices used by domestic investors to assess the performance of other markets around the world, and to estimate the impact on domestic markets are FTSE indices, NASDAQ indices, MSCI indices.

I. NASDAQ indices

II. FTSE indices

III. HSI Volatility Indices

IV. MSCI indices

Retail investors are usually individual investors who purchase small amounts of securities for the purposes of long-term investment or short-term profit, and are also major investors in unit trusts or mutual funds.

There are a number of advantages in issuing warrants for the underlying companies:
I. New capital is raised for the company when the warrants are exercised
II. Compared with other forms of financing tools, warrants are relatively inexpensive to issue
III. When warrants are exercised, the shareholder base can be broadened
IV. Warrants can be used as “sweeteners” in corporate activities

The listing requirements include many other provisions such as operating history and management, minimum market capitalization, accounting standards, public float and spread of shareholders.