APPENDIX 

1. QUESTIONS & ANSWERS FOR PHASE 2 

2. NEWS ITEMS FOR PHASE 1
Question and Answer with Hints 
I.  Questions 
1. What does IPO stands for ? 

a) Initial Public Offering 

b) Independent Public Office 

c) I place offer 

d) Initial Public Ordering 

2. Why do the companies need to raise funds ? 

a) Business expansion 

b) Cope with higher costs 

c) Liquidity needs 

d) All of the above 

3. What do Venture Capitalists do? 

a) Sell shares to investors 

b) Provide advise to clients 

c) Cheat people of their money 

d) None of the above 

4.Why companies prefer to issue bonds than issue shares ? 

a) To reduce gearing ratio 

b) Bonds raise more money 

c) Bonds are nonperishable but shares are 

d) Bonds are more favoured by the public than shares

5.Why does the controlling shareholders prefer a rights issue to a private placement ? 

a) So as not to dilute their shareholdings 

b) They have dun want to give up their voting rights 

c) They still want to have their “rights” 

d) Private placement is costly and do not benefit the company 

6.Which best describe a bond ? 

a) A security that has a limited life and pays coupon over its lifetime 

b) A security that has perpetual life and pays dividends 

c) A legal contract between the company and its suppliers 

d) The closeness of the company employees 

7.Why do investors prefer shares as compared to bonds ? 

a) Higher potential gain 

b) Fixed income for the life of the security 

c) Shares are much safer 

d) Share values goes up and up 

8.When do shares most likely need to go for a private placement? 

a) Under bearish market condition 

b) Under bullish market condition 

c) Under all conditions 

d) Under consolidation market condition 

9.What does SGX stand for and what is it about? 

a) Singapore Great Exchange. It deals in foreign currency exchange only. 

b) Some Good Exercise. It is a training program on keeping fit. 

c) Singapore Exchange. It offers trading facilities, products and educational

materials on investment. 

d) Singapore Generic Exchange. It is a comprehensive site offering investors a place to buy 

and sell their shares. 

10.Which of the following one company is listed on SGX? 

a) OSIM Pte Ltd 

b) Giordano Clothing Company 

c) Ah Heng Chicken Rice shop 

d) Mac Donald’s 

11.What is a “rights issue”? 

a) A rights issue gives the person the right to freedom of speech and action in Singapore 

b) Issuance of the rights to buy the share at a particular price usually at a 

discount to market price 

c) The issuing of rights to participate in the IPO 

d) The company issuing the rights to the dividends 

12.What’s does “bear” market s signal ? 

a) Pessimism in the markets; downward trend in stocks 

b) A big run up in stock prices 

c) Markets are acting crazy with violent ups and downs like a “mad bear” 

d) Markets are trending sideways like a “drunken bear” 

13.What does a lead manager do ? 

a) Lead the company towards greater heights 

b) In charge of setting the offering price of an IPO and allocation of shares to other underwriters 

c) In charge of AGMs 

d) In charge of the directors of the company

14.If the current shares is $2, and how much do I need to spend to qualify for 

1000 rights shares with a ratio of 1:4 at $1.50 per share. 

a) $9500 

b) $8000 

c) $6000 

d) $4000 

15.Can retail investors bid for shares up for private placement ? 

a) Yes 

b) No 

16.Why do companies go for share placement ? 

a) Relative unknown company 

b) Bearish market conditions 

c) Minimize cost and time in the raise of funds 

d) All of the above 

17.Which document must the issuer produce for listing under SESDAQ ? 

a) Prospectus 

b) Share Memorandum 

c) Share Registrar 

d) None of the Above 

18.Company X wants to go for listing under Catalist, is it necessary to find 

sponsors ? 

a) Yes 

b) No
19.What separate the ordinary shareholders from the preference shareholders ? 

a) Ordinary shareholder’s voting rights 

b) Ordinary shareholders are higher up in the share registrar 

c) Ordinary shareholders can attend AGM 

d) Ordinary shareholders have first right to dividends 

20.Which one of the instruments is most likely to enjoy capital gains alongside giving regular income ? 

a) Convertible preference shares 

b) Warrants 

c) Tech Stocks 

d) Blue Chip Stocks 

21.How long is the moratorium on the disposal of shares ? 

a) 3 months 

b) 5 months 

c) 6 months 

d) 12 months 

22.Company Y intends to go for listing. Currently, the premises is rented from the 

landlord who is also the Director. Can the company for go IPO ? 

a) Yes. The company needs only to notify in SGX 

b) No. There is a conflict of interest 

c) It depends. The Judge will decide 

d) Yes. It doesn’t matter 

23.If a subsidiary seeks IPO listing, can the holding company also go for listing ? 

a) No 

b) Yes
24.Do Catalist companies need a track record to be listed ? 

a) Yes 

b) No 

25.What is the difference between a merger and an acquisition? 

a) There is no difference, both mean exactly the same 

b) A merger is to buyover 

another company while an acquisition means to sell to another customer 

c) A merger involves the merging of companies, while an acquisition is to acquire another company d) 
A merger is a different name for an acquisition 

26.What is the advantage of having a merger? 

a) The company increases in market share and dominance in the market.  It also 

decreases their level of competition 

b) A merger is an act of friendship and reduces hostility among the merging firms 

c) There is no advantage of merger 

d) Merger allows the colluding companies to boast market power and bully smaller firms 

27.What does the term “Corporate Financing and Advisory Services” mean to 

you? 

a) It is a customer service centre for people who need financial advise regarding their companies. 

b) It is an organization that gives financial advice as well as provide corporate 

financing to companies. 

c) It is a set of regulations pertaining to corporate financing as well as the 

provision of advisory services to anyone who is interested. 

d) It is a new bank

28.You have just established your own company dealing in the production of textbooks. Which of the 
following describes the funds you need in order to set up this company? 

a) Initial capital 

b) Startup capital 

c) Excess funds 

d) Startup fundings 

29.If you needed investment advice on which shares to trade, which of the 

following personnel is the best to approach? 

a) Your Investment teacher 

b) Your Insurance agent 

c) Stockbroker 

d) A medium 

30. Which of the popular saying is more applicable to ordinary shares traded on 

the stock markets ? 

a) “…. on the longer run, the stock market is like a weighing machine” 

b) “strike it while the iron is hot” 

c) “Buy when the bears come hunting” 

d) “Buy low and sell high” 

31. Strong market will always discount in the news True/False 

32. Companies call back their bonds because they can refinance at a cheaper 

rate True/False 

33. Companies going for IPO on the SGX Mainboard do not need to have a track record True/False 

34. Companies seek secondary listing to raise more funds True/False 

35. Investors seeking to cash out on IPO can do so through vendor sales True/False 

36. In a reverse takeover, the company that launches the takeover gets taken 

over instead True/False

37. In a takeover, the shares of both companies are cancelled and a new company is formed 

True/False 

38. When a shareholder hold1% stake, he must compulsorily acquire the rest of the company 

True/False 

39. Before issuing new shares, the shareholders need to give 

a general mandate to the directors True/False 

40. 30% stake in the shareholding is effective control of the company True/False 

II. ANSWER 
1. A 

2. D 

3. A 

4. A 

5. A 

6. A 

7. A 

8. A 

9. C 

10. A 

11. B 

12. A 

13. B 

14. A 

15. B 

16. D 

17. A 

18. A
19. A 

20. A 

21. D 

22. B 

23. A 

24. B 

25.  C 

26. A 

27. B 

28. B 

29. C 

30. D 

31. True 

32. True 

33. False 

34. False 

35. True 

36. True 

37. False 

38. False 

39. True 

40. True
NEWS ITEMS 
A.  The Triumph Organization. CEO Don Triumph. Specialize in real state investment, hotels and casinos. 

1. The Triumph Organization’s second quarter earnings report is less than forecast 

in a Bloomberg survey, share price of Triumph Organization dropped by $2. 

2. Slowdown in residential property market affected 

Triumph Organization’s Chicago residential properties. The company’s share price dropped by $5. 

3. Gambling revenue in Las Vegas resorts helped Triumph Organization’ first quarter net 

profit jump by 60%. The company’s share price thus increased by $3. 

4. Don Triumph’s plan to build a fivestar  resort in Aberdeenshire, Scotland is approved by Scotland 

Council. This project will boost Triumph Organization’s reputation and revenue 
significantly. Thus its share price jumped by $4. 

5. Triumph Organization lost its bid Triumph Organization build Philadelphia casino Triumph 

Organization MGM. As a result the company’s share price dropped by $2. 

6. Triumph Organization was awarded permission to build Bali golf course in Bali, Indonesia. This will 

help Triumph Organization expand its base Triumph Organization Asia Pacific. The company’s shares 
price increased by $6. 

7. Triumph’s biggest rival, Lower Manhattan development filed bankruptcy after being unable to pay 

its $3 billion debt. Investors responded to the news with optimism, Triumph’s share price jumped by $5. 

8. Triumph’s construction project in Chevy Chase, US was stopped as cost of financing increased 

unexpectedly. The company’s share price dropped by $2. 

9. Chase Manhattan Bank realized its collateral by forcing Triumph Organization to  sell Triumph Tower 

in New York. The company’s share price dropped by $2. 

10.  Shares of Triumph Hotels and Casino Resorts increased by $3 as Credit Suisse upgraded the share 

from HOLD to BUY. 

11.  Jim Roger replaced Don Triumph as the CEO in Triumph Las Vegas resort after the company 
filed bankruptcy for Triumph Hotels and Casino Resorts. The company’s share price increased by $5 
as investors hope that Mr. Roger can help it recover. 

12.  Triumph’s casinos in Hong Kong see the revenue of the first half year of 2008 increased by $6. 
This increase is more than that of MGM Hong Kong, Triumph’s main competitor. The 
company’s share price increased by $5. 

13.  Despite recent turmoil in financial market, Triumph’s construction project in Dubai, Palm Jumeirah 

Centerpiece got financing at a cost lower than prime rate. Thus the company’s share price jumped by $4.
14.  Revenue of Triumph Organization’s merchandise arm was unhurt by weak consumer 
Confidence, increasing by 13% in the second quarter.  The company’s share price also increased by $3. 

15.  Despite the slowdown in US property market, JPMorgan still granted loans for Triumph’s high‐ 
end residence project in California. The company’s share price jumped by $4. 

16.  Triumph Organization’s mortgage finance division as not affected by the subprime problem. 

Its share price increased by $5 as the division posted profit in 2007 and the first half of 2008. 

17.  Pritzker award winner Zaha Hadid has agreed to be Triumph Organization’s exclusive architect 

within 5 years. This would give the company competitive advantage in its designing and construction 

business. The company’s share price advanced by $4. 

18.  Triumph Organization’s newly constructed luxury condominium was fully occupied within 2 

months. The company’s share price increased by $6 upon the news release. 

19.  Triumph Organization’s venture into fine dining was rewarded with profitable accounts of two 
luxury restaurants in New York. The company’s share price increased by $4. 

20.  Triumph Organization’s share price jumped by $3 overnight after it won the bid to build the 

new World Trade Centre in Manhattan, New York. 

B.  City Development Ltd. A conglomerate that develops real estate projects in Asia Pacific and 
America. One of the company’s signature building is the famous Twin Tower in Japan. 

1. City Development golf course project in Scotland golf course was postponed due to angry 

protests from the locals. The company’s share price decreased by $3. 

2. City Development and Citibank ventured in Dubai to develop the largest ever resident project 

in Saudi Arabia. City Development’s share surged by $5 as investors are very 
optimistic about this project’s outcome. 

3. City Development was given permission to build a casino in Shenzhen, 

China. Investors expect this project to be the first step if the company’s venture into China 
China’s entertainment market. Its share price increased by $5. 

4. City Development’s CEO recovered quickly after the airplane accident and continues to manage the 

company. Investors are optimistic about the company’s prospect, thus its share price increased by $2. 

5. City Development’s occupancy rate of residential properties has just surged $4 this month as demand 

for new homes is rising rapidly. The company’s share price increased by $6. 

6. City Development lost its bid to build Bangkok casino to Las Vegas Sands. As a result the company’s 

share price dropped by $7.
7. City Development was awarded permission to build a golf course in Phuket, Thailand. This will help 
the company expand its base in Asia Pacific. The company’s share price increased by $7. 

8. City Development is now the biggest property development in Philadelphia as its rival, Capital 

Development  was made bankrupt. Investors responded to the news with optimism, the 
company’s share price jumped by $5. 

9. City Development’s construction project in New Jersey, US was stopped as cost of financing increased 

unexpectedly. The company’s share price dropped by $3. 

10.Dresden Bank withdraws the second half of its loan as City Development cannot meet interest 
payments. The company’s share price dropped by $2. 

11.The City Development’s second quarter earnings report is more than forecast in a Bloomberg 

survey, share price of City Development increased by $5. 

12.Red hot residential property market helps City Development sell all of its Chicago 

residential properties. The company’s share price jumped by $6. 

13.Revenue from its Macau casinos helped City Development’s first quarter 

net profit jump by 60%. The company’s share price thus increased by $6. 

14.City Development’s plan to build a fivestar resort in Brighton, U.K. is approved by Brighton 

Council. This project will boost City Development’s reputation and revenue significantly. Thus its share 
price jumped by $3. 

15.City Development lost its bid to build a Phuket resort to Wynn Casino and Resort. As a result the 

company’s share price dropped by $5. 

16.City Development was awarded permission to build a golf course in Sentosa, Singapore. This will help 

City Development expand its base in South East Asia. The company’s share price increased by $6. 

17. City Development was granted a syndicated loan from five US banks for its mega projects in Qatar, 
Saudi Arabia. The company’s share price increased by $3. 

18.City Development’s share price increased by $6 after it won the bid to build residential condominium 

in Sentosa Cove of Singapore. 

19.City Development’s Palas Renaissance, a fashion hotspot along Orchard Road has brought 

Orchard Road has brought the company $4 of its profit in the first half of 2007. Share price of the compa 
ny rose by $4 after the release of semiannual reports. 

20.City Development’s stock increased slightly by $2 as Deustche bank upgrade the stock from SELL to 

HOLD.
C.  Wiltshire Hathaway. CEO Warren Buffet. Business nature: shopping malls, insurance, food and 
beverage. 

1. Wiltshire Hathaway reported lower secondquarter profit today because of declining insurance rates. 

Its share price dropped by $5. 

2. Buffet said in annual shareholders’ meeting that Wiltshire Hathaway profit will not be hurt by 

declining consumer sentiment. Thus its share price increased by $6. 

3. Wiltshire Hathaway gets Chinese government’ permission to build another factory in Guangzhou. The 
company’s share price increased by $3 as investors believe that outsourcing will reduce costs for 
the company. 

4. A gender discrimination lawsuit against Wiltshire Hathaway was dropped. Upon the 

news release Hathaway’s share price increased by $2. 

5. Inflation rate slowdown helps purchasing power strengthen, thus Wiltshire Hathaway revenue 

increased by 15% in the first quarter. Its share price jumped by $3. 

6. Weakening consumer sentiment in US made analyst pessimistice about Wiltshire 
Hathaway’s profit in the third quarter. The share price declined by $2. 

7. Wiltshire Hathaway signed union agreement in China to give Sichuan and Guangzhou 
employees 8 percent pay increase in 2009. Its share price decreased by $3 as investors 
expect overheads costs would increase. 

8. Wiltshire Hathaway’s expansion plan to Asia proved to be successful as profits from South East 

Asia increased in 2 consecutive years. The company’s share price surged by $6. 

9. Wiltshire Hathaway raised its forecast for third quarter revenue by 5% as Fed said inflation has 

peaked and likely to ease in the second half of the year. Its share price increased by $5. 

10.  Disputes over wages led to strikes in Hathaway factories in China, disrupting SM’s supply chain. The 

company’s share price dropped by $1. 

11.  Wiltshire Hathaway’s earnings for June report came out 8% higher than analyst forecast in a 
Bloomberg survey despite the threat of a recession. Its share price jumped by $2. 

12.  Wiltshire Hathaway’s Coca Cola revenue in second quarter increased as Coca Cola’s bottlers absorb 

the rising cost. Its share price increased by $3. 

13.  Coca Cola’s subsidiary in Indonesia can pay lower rental fees and labor wage, thus its prifts surged 
by $4.  The company’s share price increased by $3 as well. 

14.  International Labor Rights Fund has filed a suit that accuses CocaCola bottling
enterprise in Columbia of using paramilitary group to intimidate labor organizers. Concern over labor 
rights’ violation made the share price dropped by $3. 

15.  Coca Cola’s outsourcing strategy proved to be good as its expense is reduced by one‐third in the 

first half year.  Wiltshire Hathaway’s share price climbed by $5. 

16.  Wiltshire Hathaway shareholders wanted to replace the CEO as there are disagreements over 

his strategies. The company’s share price dropped by $1. 

17.  Wiltshire Hathaway agreed to increase its stake in a supermarket venture in Funan, China to 

70 percent from 45 percent, its Chinese partner reported. The company’s share price rose 
by $2 as investors hope that emerging markets will bring more profits to Wiltshire Hathaway. 

18.  US biggest retailer Wiltshire Hathaway said operating profit will increase at about the same pace as 

sales this year, six weeks after saying earnings by that measure would exceed the pace of 
revenue growth. The company share price increased by $4 

19.  Wiltshire Hathaway sales increased 3 % in July, more than 2 times as much as economist forecast, 

as declining fuel and food prices strengthened consumer spending. Its share price jumped by $3. 

20.  Wiltshire Hathaway sold its store properties for USD16 billion. The cashflow is expected to meet the 
company’s interest payment and improve liquidity,  thus its share price increased by $5. 

D.  Carrfour Inc. A giant retailer in Europe, Carrfour is a major rival to Wiltshire Hathaway 

1. Venturing into beauty treatment service brings Carrefour’s USD$50 million of revenue in the 

first half of the year. The company’s share price increased by $6. 

2. Carrefour’s gained $4 market in India market in only 2 years. The company’s share price increased by 

$5. 

3. Carrefour’s cheap products helped it gain $4 share in China retail market. Thus its share price jumped 
by $4. 

4. Carrefour’s share price increased by $3 as Coca Cola wins the rights to be come the officinal 

official drink in Beijing Olympics. 

5. Carrefour enjoys a three year waive of rental for two shopping malls in Chicago. 

Its share price jumped by $2. 

6. Carrfour’s CEO plans to build more hyperstores in China as this retail market has been yielding 90% 
profit for the company in the last 2 years. Its share price increased by $5 as investors bet on 
the company’s rapid growth in China.
7. Carrfour’s expansion plan to India proved to be successful as profits from India increased 
in 3 consecutive years. The company’s share price surged by $5. 

8. Carrfour raised its forecast for third quarter revenue by 7% as European Central Bank said inflation 

is likely to ease in the second half of the year. Its share price increased by $2. 

9. Disputes over working hours led to strikes in Carrfour’s factories in India, disrupting the supply 

chain. The company’s share price dropped by $3. 

10.  Carrfour’s earnings for July report came out 5% higher than analyst forecast in a Bloomberg survey 
despite the threat of a recession. Its share price jumped by $3. 

11.  Carrfour’s Pepsico revenue in second quarter increased as the soft drink’s bottlers absorb the rising 
cost. Its share price increased by $3. 

12.  Pepsico’s subsidiary in Philippines can reduce rental fees and labor wage, 
thus its profit surged by $4. The company’s share price increased by $5 as well. 

13.  US Union has accuses Pepsico in Brazil of violating workers’ rights. Investors’ concern over legal 
issues made the share price dropped by $7. 

14.  Pepsico’s outsourcing strategy proved to be good as its expense is reduced by onequarter 

in the first half of the year. Carrfour’s share price climbed by $2. 

15.  Carrfour shareholders wanted to replace the board of directors as there are disagreements over 
their leadership strategies. The company’s share price dropped by $1. 

16.  Carrfour agreed to increase its stake in a supermarket venture in Shenzhen, China to 60 percent 

from 20 percent. The company’s share price rose by $5 as investors hope that this new market will 

bring more profits to Carrfour. 

17.  Europe biggest retailer Carrfour said operating profit will rise at about 

the same pace as revenue this year. The share price increased by $3 as investors think that consumer 
sentiment will improve in August. 

18.  Carrfour’s sales increased $5 in July, more than three times as much 

as economists forecast, as declining commodity prices built up consumer spending. 

19.  Carrfour sold its store properties for USD26 billion. The cash flow is expected to 

improve the company’s liquidity, thus its share price increased by $3. 

20.  Carrfour’s proposal to open a hypermarket in Thailand was declined by the country’s authority. Its 
share price declined by $4.
E.  Company Macrosoft: CEO Bill Gates. Business nature: software production 

1. Earnings in second quarter increased by 5%, which is higher than 

analyst forecast of 3%. Macrosoft share price increased by $5 as investors are assured by stable 
demand for software products. 

2. Macrosoft said sales of Windows Vista for PCs in June fell lower than 

its projection. The company’s share price decreased by $4. 

3. Macrosoft’s share price jumped by $6 as sales of Macrosoft Office program exceeds the company’s 

goals for a third straight quarter. 

4. Demand for Microsoft Xbox 360 rose unexpectedly last month, pushing up the second quarter 

revenue by $3. The company’s share price jumped by $7. 

5. Better than forecast PC sales  helped Microsoft’s revenue surpass predictions for the 

first quarter. Net income raised to 50 cents a share, more than the estimated 45 % average in 
a Bloomberg survey. The company’s share price increased by $3. 

6. Bloomberg survey among analysts shows that Google has lost out to Macrosoft in online advertising 
market. Upon the survey release Macrosoft’s share price increased by $4. 

7. Macrosoft Corp. was fined with $368 million after federal jury found it infringed two patents owned 

by Alcatel Lucent.  Its share price dropped by $3 upon the news release. 

8. Bloomberg’s survey shows that US consumers prefer Microsoft Office than IBM’s document 

program, Lotus Symphony. Macrosoft’s share price increased by $2 upon the survey release. 

9. IBM's CIO Kevin Johnson,  is joining Macrosoft this month. The company’s share increased by $5 

as Mr. Johnson’s expertise is expected to help Macrosoft improve its software products. 

10.  Macrosoft’s shareholders are very optimistic that new CEO Steve Ballmer would be able to break 
Google Inc.'s dominance in Internet advertising. The company’s share price increased by $3. 

11.  Microsoft’s Office applications release had positive response in Asia: sales revenue from the region 
increased by $4 in June. Thus its share price jumped by $7. 

12.  UBS's Heather Bellini sees 5% growth in Macrosoft’s US clients division in the third quarter. 

The company’s share price increased by $5. 

13.  Federal judge Thomas Jackson ruled that Macrosoft does not hold a monopoly in computer 
operating systems and it does not have to split into two companies. the company’s share price 
increased by $4 upon the judge’s decision. 

14.  The application for ISO of Macrosoft’s Office Open XML was approved by the ISO organization.

The company’s share price increased by $3. 

15.  Bill Gates says piracy in China is good for Macrosoft's long term strategy as that increases the 
overall number of Microsoft software users. Macrosoft’s share price increased slightly 
by $1 upon his remark. 

16.  UBS upgraded Macrosoft’s stock from HOLD to BUY. Investors acted on this report and pushed 

share price up by $2. 

17.  Macrosoft’s venture into game design was met with enthusiastic response from 

young players. Its share price increased by $3 as analysts forecast that game design is a very 
promising segment for Macrosoft. 

18.  Macrosoft’s liquidity and gearing ratios in the second quarter were improved as the company’s 

replaced its Chief Financial Officer. The company’s share price increased by $4 as investors are pleased 
with its financial control. 

19.  Macrosoft win the bid to upgrade the computer system for the hotels in Triumph Organization’s 
portfolio. The company’s share price increased by $4. 

20.  Macrosoft’s will release a new Window Operating System in September, which experts said to 
be a significant improvement for the Office suite. Macrosoft’s share price rose by $5. 

F.  Applet Inc. A software producer who successfully ventured into game development and 

manufacturing PCs for graphic designers. 

1. Applet‘s CEO was seriously injured in a car accident. Applet’s share price dropped by $4 as investors 

were worried about the company’s future. Share price dropped by $4 as investors were worried about 
the company’s future. 

2. Applet minority shareholders dispute with the CEO over decision to takeover Yahoo. The company’s 

share price decreased slightly by $5. 

3. IBM has to pay Applet USD$3 billion for copyright infringement. Applet’s share price increased by $2. 

4. Applet surpassed Lotus Development Corporation as the leading software vendor thanks to 

record sales in 2007. Its share price increased by $3. 

5. Applet’s  campus in Brooklyn was badly damaged by Katrina hurricane. The company’s share 
price decreased by $2. 

6. Applet’s earnings in second quarter increased by 6%, which is higher than analyst forecast of 4%. 

Applet share price increased by $3 as investors are assured by stable demand for 

computerrelated products.
7. Applet said sales of iPhone in June fell lower than its projection. The company’s share price decreased 
by $1. 

8. Applet’s share price jumped by $3 as sales of new Mac laptops exceeded the company’s goals for 
a third straight quarter. 

9. Demand for Applet Zbox 100 rose unexpectedly last month, pushing up the second quarter 

revenue by $3. The company’s share price jumped by $3. 

10.  Better than forecast  Mac PC sales helped Applet’s revenue surpass predictions for the first 
quarter. Net income raised to 50 cents a share, more than the estimated 46cent average in 
a Bloomberg survey. The company’s share price increased by $3. 

11.  Bloomberg survey among analysts shows that Acer has lost out to Applet in sales revenue 

in Asia. Upon the survey release Applet’s share price increased by $5. 

12.  Applet Corp. was fined with $368 million after federal jury found it infringed two patents owned by 
Jay Technology. Its share price dropped by $4 upon the news release. 

13.  Bloomberg’s survey shows that US consumers prefer Applet’s Mac Office than IBM’s document 

program, Lotus Symphony. Applet’s share price increased by $3 upon the survey release. 

14.  IBM's CIO Marvin Trevor, is joining Applet this month. The company’s share increased by $3 
as Mr. Trevor’s expertise is expected to help Applet improve its software products. 

15.  Applet’s shareholders are very optimistic that new CEO Stephen Branson would be able to break 
Google Inc.'s dominance in Internet advertising. The company’s share price increased by $5. 

16.  Applet’s document applications release had positive response in Asia: sales revenue  from 

the region increased by 7% in June. Thus its share price jumped by $4. 

17.  The application for ISO of Applet’s Office HML was rejected by the International Organization for 

Standardization (ISO). The company’s share price dropped by $4. 

18.  Applet’s CEO says sales of PCs in China have increased significantly in the second quarter. 
Macrosoft’s share price increased slightlt by $2 upon his remark. 

19.  UBS upgraded Macrosoft’s stock from HOLD to BUY. Investors acted on this report and pushed 

share price up by $1. 

20.  A gender discrimination lawsuit by a former female employee against Applet was finally dropped. 

Upon the news release Hathaway’s share price increased by $4.
G.  Company Mike, CEO: Mr. Alkinson, Business nature: Sportswear manufacture 

1. Inflation easing in China helps lower Mike’s labour cost in China. The company’s share price increased 

by $3. 

2. Mike’s net profit in the first half year was $3 higher than forecast. Mike’s share price jumped by $4. 

3. Mike won its case of trademark infringement against ShoeSource and received $100 million for 

damage. Its share price increased slightly by $2. 

4. Mike reported a 63% jump in second quarter profit thanks to declining in prices of imported raw 

materials.  Its share price increased by $4. 

5. Florida’s authority lifted a ban on Mike’s kangaroo leather sporting. Florida is Mike’s biggest market in 

the US. The company’s share price increased by $2. 

6. The manager of the sales division which accounted for $4 of first half year sales left for Adidas after 
disputes over pay. Mike’s share price decreased by $1. 

7. Mike may face bankruptcy as analysts say its estimated profit cannot cover the $3 billion debts 

due next year. The company’s share price dropped by $2.. 

8. Mike will keep the right to supply uniforms for Spain's national soccer team until the end of 2014, 

prolonging a more than 20yearold partnership. Thus the company’s share price increased by $3. 

9. Mike increased its profit forecast in the third quarter, thanks to the takeover of Reebok 
International Ltd. It share price increased by $3 as investors think that the takeover is a wise decision. 

10. Secondquarter orders for Mikebrand products gained 12 percent in euro terms, spurred by a 15 
percent increase in orders for clothing. The company’s share price increased by $3. 

11. Investors expected Mike’s sales in third quarter to benefit much from Beijing 

Olympics. Its share price increased by $4. 

12. Experts say Mike’s marketing strategies are on the right track to capture China’s retail market. The 
company’s share price jumped by $3 upon this news. 

13. Mr. Alkinson says Mike will ``clearly exceed'' its full year sales target for soccer accelerated and gain 
share in all major markets. Thus its share price increased by $3. 

14. Analysts say rising inflation in Europe may affect Mike’s revenue in the third quarter as consumer 

sentiment index in June has halved compared to last year. Investors are pessimistic about the 
company, thus its share price decreased by 5%. 

15. Mike has won the right to sponsor Germany’s national soccer team from its major competitor, Nike. 

The company’s share price increased by $3 as investors think that Mike is gaining more market 
share in Europe than Nike.
16. The International Labour Right Foundation reported that Mike honour workers’ right in all of its 
factories, while Nike and Jordano were warned for maltreatment of their workers in China and 
Nigeria. Mike’s share price advanced by a slight $1. 

17. Mike’s operating expenses in the second quarter decreased due to the decline of oil price. The 

company’s share price rose by $3 on the news release. 

18. Mike’s apparel division continue to earn profits in the second quarter. Thus investors continue to 
purchase Mike’s shares, raising the price by $4. 

19. Cyclones in Indonesia destroyed Mike’s factories, pausing damage of USD$100 million. 

Mike’s share price dropped by $1 

20. Mike’s share price advanced by $1 after Merrill Lynch upgraded its share from SELL to HOLD. 

H.  Addidas. Inc. A Germanybased sportswear manufacturer. Addidas Inc. is the second largest firm in 
its industry after Mike Inc. 

1. Germany Sports Council agreed to let Addidas advertise at its sports events for 
free in five years. As this will reduce Addidas’s marketing costs a lot, its share price increased by $4. 

2. Violent cyclones in Indonesia have disrupted Addidas’s distribution 

chain in Asia, causing loss of about USD$200 million. The company’s share price decreased by $1. 

3. Addidas’s application for a term loan to finance R&D was approved 

with lower than market interest rate. The company’s profit is likely to 

increase thanks to lower interest expense. Thus, the company’s share prince increased by $3. 

4. Addidas’s release of an environment‐friendly type of jerseys is expected to increase its revenue. The 
company’s share price increased by $4. 

5. Addidas’s R&D department came up with a new method to produce sneakers at 1/3 of the current 

costs. Thus Addidas’s share price jumped by $3. 

6. Addidas’s net profit in the first half year was 15% higher than forecast. Addidas’s share price jumped 

by $4. 

7. Addidas lost its case of trademark infringement against ShoeSource and has to pay $100 million for 
damage. Its share price decreased slightly by $2. 

8. Addidas reported a 50% jump in second quarter profit thanks to declining in prices of imported raw 
materials. Its share price increased by $3. 

9. Australia’s authority lifted a ban on Addidas’ using kangaroo hide to produce sportshoes. Austrialia is 

Mike’s biggest market in Asia Pacific. The company’s share price increased by $3.
10. The manager of the sales division which accounted for 40% of first half year sales left for Jordano. 
Addidas’s share price decreased by $1. 

11.  Addidas share price dropped by $3 as analysts say its whole year estimated profit cannot cover the 
$4 billion debts due next year. 

12.  Addidas will keep the right to supply uniforms for France's national soccer team until the end of 
2014, prolonging a more than 20 year‐old partnership.  Thus the company’s share price increased 

by $4. 

13.  Addidas increased its profit forecast in the third quarter, thanks to the takeover of 
Hang Tene International Ltd. It share price increased by $4 as investors think that the takeover 
is a wise decision. 

14.  Second quarter orders for  Addidas branded products gained  15 % in Europe. The company’s share 
price increased by $3. 

15.  Investors expected Addidas’s sales in third quarter to benefit much from Beijing Olympics. Its share 

price increased by $4. 

16.  Experts say Addidas’s marketing strategies are on the right track to capture 
capture China’s retail market. The company’s share price jumped by $2 upon this news. 

17.  Addidas’s CEO is optimistic that its full year sales will meet target for soccer related goods and gain 

share in all major market. Thus its share price increased by $3. 

18.  Analysts say rising inflation in Europe may affect Addidas’s revenue in the third quarter 

as consumer sentiment index in July has plummeted compared to last year. Investors are pessimistic 
about the company, thus its share price decreased by $2. 

19.  Addidas has won the right to sponsor U.K.’s national soccer team from its major competitor, 

Jordano. The company’s share price increased by $3 as investors think that Addidas is ganing more 
market share in Europe than Jordano. 

20.  Chinese Union reported that Addidas honors workers’ right in all of its factories in China, while Nike 
and  Jordano were warned for maltreatment of their workers. 

I.  Mixed news items that affect many companies share price. 

1. Triumph Organization, Macrosoft, Mike, Wilshire Hathaway share price all increased by $4 after 

Fed’s unexpected interest rate cut. 

2. As the US consumer confidence index began to climb up, share prices of companies like Mike, 
Macrosoft and Addidas increased by $3.
 However, Triumph Organization and City Development’s share price dropped as property market is still 
sluggish. 

3. Trump Organization’s CEO Don Triumph and City Development owner Adam Fisher announced their 

latest  real estate release: Spa Pavilion at Trump Resort. Triumph’s share price increased 
by $5 while City Development increased by $3. 

4. Share price of Addidas, Macrosoft, Apple and Mike increased by $3 as inflation has 

dropped 1% last month, signaling stronger purchasing power. 

5. Citibank’s analysts forecast that US economy will recover quickly. Thus all eight companies share price 

jumped by $4. 

6. Wiltshire Hathaway and Addidas  team up to build a sportswear superstore in Ontario, Canada 

were met with unanimous approval from shareholders. The share prices of two companies increased 
by $3 and $4 respectively 

7. Wiltshire Hathaway’s revenue increased thanks to the revenue of Macrosoft Xbox. 

Both companies’ share prices increased by $2. 

8. Wiltshire Hathaway’s revenue was affected after Apple stopped selling iPhone to 

US. Wiltshire Hathaway’s share price dropped by $1 while Apple share price increased by $3. 

9. Earthquake in Sichuan destroyed many us factories including those of Witlshire Hathaway, Addidas 

and Mike. Their share price all plummeted by $3. 

10.  Wiltshire Hathaway’s sales revenue rose in the first half year compared to last year despite 
a slowdown in US economy. Its share price increased by $4 as investors are optimistic about the 
company’s prospect. 

11.  The introduction of Macrosoft’s iPod in Addidas’s sportswear branched was so welcomed by 

Addidas’s customers that Macrosoft and Addidas’s revenue climbed up by $4 each. 

12.  Yahoo rejected Microsoft and Apple’s offers saying that the prices proposed 

were too low. Both Apple and Macrosoft’s share price decreased by $1. 

13.  Some experts said that Macrosoft’s charge for building Wiltshire Hathaway’s 

ecommerce site is beyond the market price. 
Macrosoft’s share price increased by $2 while Wiltshire’s share decreased by $3. 

14.  Beijing government has stepped up in cracking software piracy and branded goods 

counterfeits. Share prices of companies venturing into China such as Macrsoft, Addidas, and 
Mike went up by $1.
15.  Macrosoft unveiled plans to weave Live Search in to the Apple’s social networking 
site. This expected to make Macrosoft marketing strategies more efficient. 
Share price of Macrosoft and Apple increased by $3 each. 

16.  Mike and Adidda’s customers orders increased suddenly before Beijing Olympics, making their July 

revenues increased by around $4 each. Thus the share price of Mike and Adidda’s increased by $3 and 
$4 each. 

17.  Many US companies such as Mike, Addida, Macrosoft, Apple will start selling goods online in the 

China this year and already has put shoes and apparel on the Internet to tap into the increasingly 
popular trend of online shopping. Investors are optimistic that this effort will yield good profits. 
Thus these companies’ share prices increase by $4. 

18.  ECB’s interest rate hike of 25bp made Mike’s borrowing cost higher,thus likely to affect third 

quarter net profit. The company’s share decreased by $3. 

19.  Mike has won the right from to become the main sponsor for Germany’s mational soccer team 

from Adiddas for the next 5 years. 

Mike’s share increased by $3 while Addida’s decreased by $2. 

20.  The federal judge of California ruled that Wiltshire Hathaway has to pay Mike USD$30 million from 
for selling counterfeits of Mike’s trainers. 

Mike’s share price increased by $5 while Hathaway’s share dropped by $3 in value.