SEC Phase 2-7B Equities Securities Salesman (ESS) Exam - Philippines study guide
SEC Phase 2-7B Equities Securities Salesman (ESS) Exam - Philippines · Work through your exam, one topic at a time.
The Equities Securities Salesman (ESS) examination is the Philippine Securities and Exchange Commission's licensing assessment for individuals who will sell, solicit, or advise on equity securities for a broker-dealer registered with the SEC and trading on the Philippine Stock Exchange. It sits within the SEC's Phase 2 licensing track for market participants, and passing it is normally one of the conditions a firm must satisfy before a person may be endorsed as an associated person handling equity accounts. The SEC Phase 2-7B Equities Securities Salesman (ESS) Exam - Philippines study guide has 9 sections and about 2,628 words.
01Philippine Securities Regulation and the Securities Regulation Code (RA 8799)
This domain tests the Securities Regulation Code (RA 8799) as the primary Philippine securities statute: SEC jurisdiction, registration of securities and market participants, exempt offerings, and anti-fraud and enforcement powers. The exam favors the distinction between regulating an issuer’s offering and licensing the person who sells it.
292 words, about 1 min02SEC Licensing, Registration, and Conduct Rules for Market Participants
This domain tests SEC licensing, registration, and conduct rules for broker-dealers, trading participants, and salesmen. It asks who may solicit, what firm must stand behind each order, and how conduct obligations are supervised.
289 words, about 1 min03Equity Securities: Shares, Rights, and Corporate Actions
This domain tests the rights attached to equity securities and the mechanics of corporate actions that change share count, price, or entitlements. Expect questions on common versus preferred shares, dividends, splits, rights offerings, and record and ex dates.
305 words, about 2 min04Philippine Stock Market Structure, Trading, and Settlement (PSE, SCCP, PDTC)
This domain tests the Philippine equity market’s plumbing: PSE trading, SCCP clearing and settlement, and PDTC depository services. Questions often test the trade date and settlement date timeline and which entity performs each function.
279 words, about 1 min05Order Handling, Execution, and Client Account Procedures
This domain tests the lifecycle of a client order: account approval, order capture, execution, allocation, confirmation, and settlement. It focuses on authority, accuracy, and client priority.
296 words, about 1 min06Sales Practice, Suitability, and Know-Your-Customer / Anti-Money Laundering Requirements
This domain tests sales-practice standards: know your customer, suitability, and anti-money-laundering duties. The exam expects practical judgment, not just definitions.
292 words, about 1 min07Market Conduct, Fair Dealing, and Prohibited Practices (Manipulation, Insider Trading, Front-Running)
This domain tests fair dealing and prohibited market conduct: manipulation, insider trading, and front-running. Questions often turn on timing, intent, and whose order came first.
298 words, about 1 min08Equity Valuation, Fundamental and Technical Analysis, and Investment Risk
This domain tests valuation and risk analysis for equity recommendations: fundamental ratios, simple DCF logic, technical indicators, and the risk factors that affect suitability. Fundamental analysis uses earnings, margins, cash flow, leverage, ROE, and growth.
290 words, about 1 min09Ethics, Professional Standards, and Recordkeeping/Reporting Obligations
This domain tests ethics, professional standards, and the records and reports that make conduct auditable. Expect questions on confidentiality, conflicts, complaints, and regulatory reporting.
287 words, about 1 min