Stock Trading as an Investment: Practice Questions

Which of the following is considered a political factor that could significantly influence the share prices of listed companies in Hong Kong?

TechGiant Ltd., a stable company listed on the HKEX Main Board, has maintained consistent profitability. However, the Federal Reserve (Fed) recently announced a significant increase in its benchmark interest rate, leading major Hong Kong banks to follow suit. Assuming all other company-specific factors remain constant, what is the MOST LIKELY short-term effect of this interest rate hike on TechGiant Ltd.'s share price?

Company Z is a technology firm listed on the Main Board with a history of stable growth. Recently, its share price dropped by \( 15\% \) despite the company reporting a record-breaking quarterly net profit. During the same period, the Hang Seng Index (HSI) remained stable, but the government announced stringent new data privacy regulations specifically targeting the tech industry. Which factor is primarily driving Company Z's share price movement?

Regarding the rights of individual investors, which of the following is an investor entitled to ask for from their broker or bank?

Mr. Ho discovered that his broker executed several high-risk trades on his behalf that he never authorized. Although Mr. Ho has the right to file a complaint, the brokerage firm argues that he is partially responsible for the losses because he did not check his account for three months. Which responsibility of an individual investor is the brokerage firm referring to?

A company currently listed on GEM announces its plan to migrate to the Main Board while simultaneously changing its dividend policy from a high payout ratio to zero dividends to fund an aggressive expansion. Evaluate how these two factors might interact to influence the company’s share price in a market characterized by high speculation.