100+ Free SEC Phase 1 Practice Questions

Pass your SEC Certification Examination Phase 1 (General) exam on the first try — instant access, no signup required.

✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately

60% Pass Rate

100+ Questions

100% Free

Loading practice questions...

Same family resources

Explore More Philippines SEC Certification Program

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

SEC Phase 2-7D Compliance Officer / Associated Person (CO/AP) Exam — Philippines

Practice Questions100 questions

SEC Phase 2-7E Proprietary/Non-Proprietary Securities (Timeshare) Salesman (PNPSS) Exam — Philippines

Practice Questions100 questions

2026 Statistics

Key Facts: SEC Phase 1 Exam

65%

Passing Score

78/120 correct answers

4 hours

Exam Duration

240 minutes limit

Php 500

Exam Fee

PhilSEC Foundation

Modules Covered

Fundamentals to AML

The Philippine SEC Certification Examination Phase 1 (General) is a 4-hour, 120-question multiple-choice exam administered by the PhilSEC Institute Foundation. A passing score of 65% is required. It covers fundamental securities concepts, economics, securities laws (SRC), corporate governance, risk management, and anti-money laundering. Candidates typically undergo a certification seminar before taking the exam.

Sample SEC Phase 1 Practice Questions

Try these sample questions to test your SEC Phase 1 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the Revised Corporation Code of the Philippines (RA 11232), which right allows an existing stockholder to subscribe to new shares issued by the corporation in proportion to their current holdings before they are offered to the public?

A.Appraisal right

B.Preemptive right

C.Right of inspection

D.Voting right

Explanation: The preemptive right is a fundamental right of stockholders under Section 38 of the Revised Corporation Code. It entitles stockholders to subscribe to all issues or disposition of shares of any class, in proportion to their respective shareholdings, maintaining their relative ownership percentage, unless denied in the articles of incorporation or restricted under specific statutory exceptions.

2What class of shares is created primarily for the purpose of granting exclusive voting rights to the organizers of a Philippine corporation for a limited period not exceeding five years?

A.Treasury shares

B.Founder's shares

C.Preferred shares

D.Redeemable shares

Explanation: Under Section 7 of the Revised Corporation Code, founder's shares may be given certain rights and privileges, such as the exclusive right to vote and be voted for in the election of directors, provided that such exclusive right shall not exceed five (5) years from the date of approval by the SEC.

3In the Philippine capital markets, which of the following is an open-end investment company that continuously issues and redeems its shares at Net Asset Value Per Share (NAVPS)?

A.Real Estate Investment Trust (REIT)

B.Closed-end fund

C.Exchange-Traded Fund (ETF)

D.Mutual fund

Explanation: A mutual fund is an open-end investment company that pools money from investors to purchase a diversified portfolio of securities. It continuously sells new shares and stands ready to redeem outstanding shares directly from investors at the calculated Net Asset Value Per Share (NAVPS) on any business day.

4Under the Real Estate Investment Trust (REIT) Act of 2009 (RA 9856) of the Philippines, what minimum percentage of its distributable income must a REIT distribute as dividends to its shareholders annually?

A.90%

B.75%

C.50%

D.100%

Explanation: Section 7 of Republic Act No. 9856 (REIT Act of 2009) mandates that a REIT must distribute at least ninety percent (90%) of its distributable income as dividends to its shareholders annually to maintain its tax-favored status.

5Which of the following yields is calculated by dividing the annual coupon payment of a bond by its current market price?

A.Yield to maturity (YTM)

B.Nominal yield

C.Current yield

D.Yield to call (YTC)

Explanation: The current yield of a bond is calculated by dividing its annual coupon interest payment by its current market price. It represents the annual return on the investment based on its market value, without accounting for capital gains or losses at maturity.

6Under the Revised Corporation Code of the Philippines, in which of the following corporate actions does a dissenting stockholder NOT have the appraisal right?

A.An amendment to the articles of incorporation that has the effect of changing or restricting the rights of any stockholder

B.A sale, lease, exchange, mortgage, pledge, or other disposition of all or substantially all of the corporate property and assets

C.Approval of a dividend distribution out of unrestricted retained earnings

D.A merger or consolidation of the corporation with another corporation

Explanation: Under Section 80 of the Revised Corporation Code, a stockholder has the appraisal right (to demand payment of the fair value of their shares) only in specific cases: (a) amending the articles to change or restrict stockholder rights, authorize preferences, or extend/shorten corporate term; (b) sale or disposition of all or substantially all assets; (c) merger or consolidation; and (d) investing corporate funds in another business. Dividend distribution does not trigger appraisal rights.

7Which corporate shares have been issued as fully paid but are subsequently reacquired by the corporation through purchase, donation, or other lawful means?

A.Treasury shares

B.Redeemable shares

C.Watered stock

D.Escrow shares

Explanation: Under Section 9 of the Revised Corporation Code, treasury shares are shares of stock which have been issued and fully paid for, but subsequently reacquired by the issuing corporation by purchase, redemption, donation, or through some other lawful means. They are held in the treasury and can be disposed of again.

8If a Philippine corporation has 1,000,000 outstanding common shares, generated a net income after tax of PHP 5,000,000, and paid PHP 1,000,000 in preferred dividends, what is the Earnings Per Share (EPS) for the common stockholders?

A.PHP 5.00

B.PHP 6.00

C.PHP 4.00

D.PHP 1.00

Explanation: Earnings Per Share (EPS) is calculated as: (Net Income - Preferred Dividends) / Number of Outstanding Common Shares. In this case, (PHP 5,000,000 - PHP 1,000,000) / 1,000,000 = PHP 4.00 per share.

9An investor purchases a corporate bond with a par value of PHP 10,000 and a 6% coupon rate at a market price of PHP 9,500. What is the current yield of this bond?

A.6.32%

B.6.00%

C.5.70%

D.6.50%

Explanation: Current Yield is calculated as: Annual Interest Payment / Current Market Price. The annual interest payment is 6% of PHP 10,000 par value, which is PHP 600. The current market price is PHP 9,500. Therefore, Current Yield = PHP 600 / PHP 9,500 = 0.06315, or approximately 6.32%.

10Which of the following capital market products represents an ownership interest in a pool of real estate assets and is legally structured as a stock corporation that must be listed on the Philippine Stock Exchange?

A.Real Estate Mutual Fund

B.Asset-Backed Security (ABS)

C.Collateralized Debt Obligation (CDO)

D.Real Estate Investment Trust (REIT)

Explanation: In the Philippines, a Real Estate Investment Trust (REIT) is a stock corporation established under RA 9856 to own and operate income-generating real estate. The REIT must be listed on the Philippine Stock Exchange (PSE), must have a public float of at least 33.33% (as revised), and must distribute at least 90% of its distributable income as dividends.

About the SEC Phase 1 Exam

Mandatory certification exam for capital market professionals in the Philippines, covering securities regulation, economics, and risk management.

Questions

120 scored questions

Time Limit

4 hours (240 minutes)

Passing Score

65%

Exam Fee

Php 500.00 (Securities and Exchange Commission (Philippines))

SEC Phase 1 Exam Content Outline

15%

Fundamentals of Securities

Corporate structure, types of shares, stockholder rights, and capital market products.

15%

Economic Principles and Market Theories

Macroeconomic concepts, monetary and fiscal policy, financial system structure, and basic business math.

20%

Fundamentals of Securities Regulation

The Securities Regulation Code (SRC) general rules, registration of securities, and SEC oversight.

15%

Corporate Governance

Code of Corporate Governance for public companies, board responsibilities, duties of directors, and shareholder rights.

20%

Risk Management

Risk identification and mitigation, capital adequacy frameworks, and risk management guidelines for broker-dealers.

15%

Anti-Money Laundering (AML)

Republic Act No. 9160 (AMLA) as amended, compliance protocols, suspicious transaction reports (STRs), and KYC procedures.

How to Pass the SEC Phase 1 Exam

What You Need to Know

Passing score: 65%
Exam length: 120 questions
Time limit: 4 hours (240 minutes)
Exam fee: Php 500.00

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

SEC Phase 1 Study Tips from Top Performers

1Focus on the Securities Regulation Code (SRC) and Anti-Money Laundering Act (AMLA), as regulations represent a significant portion of the test.

2Understand the difference between market manipulation techniques such as wash sales, painting the tape, and insider trading.

3Practice basic business math and calculation of share value, dividend yields, and capital adequacy ratio (CAR).

4Familiarize yourself with the duties of independent directors and board responsibilities under the Philippine Code of Corporate Governance.

5Take full-length timed mock practice exams to manage your time across the 120 multiple-choice questions.

Frequently Asked Questions

What is the passing score for the SEC Phase 1 exam?

The passing score is 65%, meaning you must answer at least 78 out of 120 questions correctly to pass.

How much does the SEC Phase 1 exam cost?

The examination fee administered by the PhilSEC Institute Foundation is Php 500.00 per attempt.

What happens after passing Phase 1?

After passing Phase 1 (General), candidates must take the specialized Phase 2 exam matching their specific market role (e.g., Certified Investment Solicitor or Associated Person).