1.From a corporate actions perspective, an STO has an obligation to put its interest above that of its clients.

a.True

b.False

2.Markets in which securities trade may be?

a.on-exchange

b.unregulated

c.subject to fixed rules that remain unchanged over time

d.all of the above

3.Position holders can gain an advantage from corporate action events by ensuring that they have:

a. the correct details for the event

b. the correct quantity of securities and/or cash value, at the appropriate date all the

c.details relating to elective events and, in particular, the decision deadlines

d. all of the above

4. A companys shares are trading at R27. The company declares a dividend of R1.20 per share. Shareholders are given the option of cash payment or in the form of a scrip dividend. How many new shares will an investor receive if they currently hold 1 000 000 shares and opt for the scrip dividend, assuming the share price is unchanged on payment date?

a.22 500 000

b. 44 444

c.1 044 444

d.37 037

5. An investor holds 5 000 shares of VC Ltd, which was bought for R18 per share and is now priced at R20 per share. VC Ltd makes a 2-for-3 rights issue at R15.80 at this time. The investor decides to subscribe to the rights issue. What is the price per share expected to adjust to post the rights issue (the ex-rights price)?

a.R 18.32

b.R 17.12

c.R 19.20

d.R18.80