7/23/2019 Is-IsM AY 2010-11 Sem 1- Tut 1 (the Stock Market)

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Investing In The Stock Market

Tutorial 1

The Singapore Stock Market

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Q1. What is the stock market?

The stock market is a place where stocks and shares are regularly ought and sold. Itconsists o! a primary and secondary market

Q". #ame the $ largest companies in Singapore %y market capitali&ation' as at date o!tutorial. (ls re!er to S)* wesite.

Q$. The current share price o! +ig ,ish -ompany is 1./0. I! it has already issued "million ordinary shares2 what is the market capitali&ation o! +ig ,ish -ompany?

Market -ap 31./0 4 " m3 5m

Q5. What is a market inde4? Which is the most popularly used inde4 !or Singapore

stocks?

-alculates the price changes o! a asket o! stocks and allows investors an easy way tomonitor the general direction o! the stock market or certain o! its sectors.

Straits Times Inde4 %ST Inde4 or STI'

Q. What is a onus issue?

This is a paper e4ercise that adds nothing to the total assets o! the company.

Thus i! you owned a 1000 shares o! a company and its market price is 2 a!ter a one6!or6one onus issue2 you would have "000 shares and its new market price wouldtheoretically !all to ".0

7iscussion Time with Tutor %1 8 "0 minutes'

Topics covered may include9

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7/23/2019 Is-IsM AY 2010-11 Sem 1- Tut 1 (the Stock Market)

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Investing In The Stock Market

Would you invest in shares and why?

What is risk and return?

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