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100+ Free CME-5B Practice Questions

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Key Facts: CME-5B Exam

20 questions

CME-5B is a 20-question multiple-choice exam

Financial Academy - CME-5B exam details

30 minutes

Time allowed for the CME-5B exam

Financial Academy - CME-5B exam details

17 points (85%)

Pass mark published for the CME-5B exam

Financial Academy - CME-5B exam details

1,700 SAR

Registration fee for the CME-5B exam

Financial Academy - CME-5B exam details

40% OSCO

Rules on the Offer of Securities and Continuing Obligations is the largest syllabus area

Financial Academy - CME-5B syllabus

Part B of 2

CME-5B must be passed with CME-5A to gain the corporate finance certificate

Financial Academy - CME-5 corporate finance certificate

Since 1 Feb 2023

Both CME-5 exams are mandatory to register for corporate finance roles

Capital Market Authority - qualification examinations

100

Free original practice questions in this bank

OpenExamPrep

Saudi CME-5B (Saudi Capital Market Rules and Regulations - Corporate Finance) is Part B of the CMA corporate finance certificate, administered by the Financial Academy in cooperation with CISI. The official exam is 20 multiple-choice questions in 30 minutes with a pass mark of 17 points (85%) and a 1,700 SAR fee. The syllabus weights are OSCO 40%, Corporate Governance Regulations 28%, Special Purpose Entities 16% and Merger and Acquisition Regulations 16%. Candidates must pass both CME-5A and CME-5B to register as a corporate finance specialist at a Capital Market Institution, a requirement in force since 1 February 2023. This 100-question bank gives original, weighted practice across all four CMA regulatory areas with full explanations.

Sample CME-5B Practice Questions

Try these sample questions to test your CME-5B exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the CMA's Rules on the Offer of Securities and Continuing Obligations (OSCO), an offer of securities to the public in Saudi Arabia generally requires which document to be approved before the offer is made?
A.A prospectus approved by the CMA
B.A board resolution only
C.A press release approved by the Saudi Exchange
D.A letter of intent from the underwriter
Explanation: OSCO requires that a public offer of securities be made only after the CMA approves a prospectus that contains the prescribed disclosures. The prospectus protects investors by setting out the issuer's financial position, risks and offer terms.
2Which body is responsible for approving a prospectus for a public offering of securities in Saudi Arabia?
A.The Capital Market Authority (CMA)
B.The Saudi Central Bank (SAMA)
C.The Ministry of Commerce
D.The Saudi Exchange (Tadawul)
Explanation: The CMA is the regulator of the Saudi capital market and approves prospectuses under OSCO. SAMA regulates banks and insurers, while Tadawul operates the market but does not approve prospectuses.
3Under OSCO, which of the following is generally classified as an 'exempt offer' that does not require a CMA-approved prospectus?
A.A limited offer to a small number of sophisticated investors
B.An initial public offering on the Main Market
C.A rights issue by a listed company
D.A public offer of sukuk to retail investors
Explanation: Exempt offers under OSCO include private placements made to a limited number of sophisticated (qualified) investors, which fall outside the public-offer prospectus regime. Public offers, IPOs and retail sukuk offers require a prospectus.
4What is the primary purpose of the 'continuing obligations' part of OSCO for a company whose shares are listed on the Saudi Exchange?
A.To ensure ongoing disclosure of material information to the market
B.To set the company's dividend policy
C.To guarantee a minimum share price
D.To fix the number of board members
Explanation: Continuing obligations require listed issuers to keep disclosing material developments, financial results and other information so that investors can make informed decisions on an ongoing basis. They do not set dividends, guarantee prices or fix board size.
5Under OSCO continuing obligations, when a listed company becomes aware of a material development that is not public, it must generally:
A.Disclose it to the public without delay
B.Wait until the next quarterly report
C.Disclose it only to its major shareholders
D.Disclose it only if a journalist asks
Explanation: OSCO requires immediate disclosure of material developments to the public so that all investors receive the information at the same time, preventing selective disclosure and insider trading. Delaying to the next report or telling only major shareholders is prohibited.
6A 'rights issue' under OSCO is best described as:
A.An offer of new shares to existing shareholders in proportion to their holdings
B.A sale of treasury shares to new investors
C.A bonus issue of free shares funded from reserves
D.A buyback of shares from the market
Explanation: A rights issue offers existing shareholders the right to subscribe for new shares, usually in proportion to their current holdings and often at a discount, to raise capital while protecting them from dilution. It is distinct from bonus issues, buybacks and treasury-share sales.
7In a rights issue, the tradable instrument that allows a shareholder to subscribe for new shares, or to sell that entitlement, is commonly called a:
A.Right
B.Warrant deposit
C.Convertible note
D.Treasury certificate
Explanation: In a Saudi rights issue, eligible shareholders receive tradable 'rights' that can be exercised to buy new shares or sold on the market during the trading period. This lets shareholders who do not wish to subscribe realise value for their entitlement.
8Which market is the Saudi Exchange's 'parallel market' for companies that do not meet all Main Market requirements?
A.Nomu
B.Tadawul Main
C.MT30
D.Sukuk Board
Explanation: Nomu is the parallel market with lighter listing requirements aimed at smaller and growth companies; investment in Nomu is generally restricted to qualified investors. The Main Market (Tadawul) has the full listing requirements.
9Investment in securities listed on the Nomu parallel market is generally restricted to:
A.Qualified investors
B.Retail investors only
C.Foreign investors only
D.Government entities only
Explanation: Because Nomu has lighter disclosure requirements and higher risk, the CMA restricts direct investment to qualified (sophisticated) investors who can better assess and bear the risk. Retail access is limited compared with the Main Market.
10Under OSCO, the document used for a Nomu (parallel market) admission, containing prescribed disclosures, is referred to as a(n):
A.Admission document
B.Main Market prospectus
C.Annual report
D.Information memorandum for sophisticated debt
Explanation: Companies seeking admission to Nomu prepare an 'admission document' with prescribed disclosures, which is lighter than a Main Market prospectus but still must be approved before admission. The terminology distinguishes the parallel-market regime from the Main Market.

About the CME-5B Exam

Saudi CME-5B, the Saudi Capital Market Rules and Regulations (Corporate Finance) exam, is Part B of the CMA corporate finance certificate. It gives staff registering as corporate finance professionals the knowledge of the Capital Market Authority's implementing regulations they need to advise on capital-market transactions in Saudi Arabia. The syllabus is built around four areas: the Rules on the Offer of Securities and Continuing Obligations (OSCO), which govern prospectuses, public and private offers and continuing disclosure; the Corporate Governance Regulations for listed companies; the Special Purpose Entities Rules used for securitisation and issuance; and the Merger and Acquisition Regulations covering takeovers and offers. It is a short, closed-book multiple-choice exam delivered by computer in Arabic and English at the Financial Academy, and must be passed together with the CME-5A technical foundations exam to register for a corporate finance specialist role.

Assessment

The official CME-5B exam has 20 multiple-choice questions covering four CMA syllabus areas: Rules on the Offer of Securities and Continuing Obligations (40%), Corporate Governance Regulations (28%), Special Purpose Entities Rules (16%) and Merger and Acquisition Regulations (16%).

Time Limit

30 minutes.

Passing Score

17 points (85%), per the CMA-published exam standard.

Exam Fee

1,700 SAR, paid through the Financial Academy portal; the fee may be recoverable for eligible Saudi candidates through the Hadaf platform after passing. (Capital Market Authority (CMA), Saudi Arabia - exam administered by the Financial Academy in cooperation with CISI.)

CME-5B Exam Content Outline

40%

Rules on the Offer of Securities and Continuing Obligations (OSCO)

Covers public offers, rights issues, private placements and parallel-market (Nomu) offerings; the contents and approval of the prospectus; the roles of the issuer, Financial Advisor and underwriter; and continuing obligations such as disclosure of material developments, periodic financial reporting and related-party transactions for listed issuers.

28%

Corporate Governance Regulations

Covers board composition, independent and non-executive directors, board committees (audit, nomination and remuneration), shareholder rights and the general assembly, cumulative voting, conflicts of interest and disclosure of governance practices, plus the CMA's supervisory role over listed-company governance.

16%

Special Purpose Entities Rules

Covers the establishment and registration of special purpose entities (SPEs) used for securitisation and capital-market issuance, the sponsor and trustee roles, transfer and isolation of assets, bankruptcy remoteness, and the SPE's disclosure and continuing obligations under CMA rules.

16%

Merger and Acquisition Regulations

Covers mandatory and voluntary offers, acquisition and disclosure thresholds, creeping acquisitions, the offer document and timetable, the duties of the offeror and offeree boards, the Financial Advisor's responsibilities, equal treatment of shareholders and the CMA's role in regulating takeovers.

How to Pass the CME-5B Exam

What You Need to Know

  • Passing score: 17 points (85%), per the CMA-published exam standard.
  • Assessment: The official CME-5B exam has 20 multiple-choice questions covering four CMA syllabus areas: Rules on the Offer of Securities and Continuing Obligations (40%), Corporate Governance Regulations (28%), Special Purpose Entities Rules (16%) and Merger and Acquisition Regulations (16%).
  • Time limit: 30 minutes.
  • Exam fee: 1,700 SAR, paid through the Financial Academy portal; the fee may be recoverable for eligible Saudi candidates through the Hadaf platform after passing.

Keys to Passing

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

CME-5B Study Tips from Top Performers

1Read the actual CMA implementing regulations - especially OSCO and the Merger and Acquisition Regulations - because CME-5B tests the specific rules, thresholds and timetables, not general finance theory.
2Memorise the key OSCO numbers: what triggers a prospectus, the differences between a public offer, a rights issue and a private placement, and the Nomu (parallel market) thresholds.
3Learn the M&A thresholds and the Financial Advisor's duties: when a mandatory offer is triggered, creeping-acquisition limits, equal-treatment rules and offer-document requirements.
4For Corporate Governance, focus on board independence, committee composition, shareholder rights and the general assembly, since these account for over a quarter of the exam.
5Do not overlook Special Purpose Entities: know why SPEs are used for securitisation, the sponsor and trustee roles and the asset-isolation concept, as this is a small but distinct 16% area.
6Because the exam is short (20 questions in 30 minutes), practise reading regulatory questions quickly and choosing the option that matches the exact rule rather than what seems commercially sensible.

Frequently Asked Questions

What is the Saudi CME-5B exam?

CME-5B, Saudi Capital Market Rules and Regulations (Corporate Finance), is Part B of the CMA corporate finance certificate. It tests knowledge of the Capital Market Authority's implementing regulations for staff registering as corporate finance professionals.

How many questions are on the CME-5B exam and how long is it?

The official CME-5B exam has 20 multiple-choice questions and a duration of 30 minutes. It is delivered by computer at the Financial Academy in Arabic and English.

What is the pass mark for CME-5B?

The CMA-published pass mark is 17 points, equivalent to 85% of the exam. Candidates who do not pass can re-register and resit.

What does the CME-5B syllabus cover?

Four areas: the Rules on the Offer of Securities and Continuing Obligations (40%), Corporate Governance Regulations (28%), Special Purpose Entities Rules (16%) and Merger and Acquisition Regulations (16%).

Do I need to pass CME-5A as well?

Yes. To register as a corporate finance specialist at a Capital Market Institution you must pass both CME-5A (Corporate Finance Technical Foundations) and CME-5B (the regulations exam). This requirement has applied since 1 February 2023.

How much does CME-5B cost and who administers it?

The registration fee is 1,700 SAR through the Financial Academy portal, which administers the exam in cooperation with CISI on behalf of the Capital Market Authority. Eligible Saudi candidates may recover the fee through the Hadaf platform after passing.