offer plan participants at least 3 different investment alternatives.
ensure that plan participants are insulated from control over their portfolios.
allow plan participants to change their investment options no less frequently than quarterly.
allow plan participants to purchase U.S. Treasury securities.
A) I and IV.
B) II and III.
C) I and III.
D) II and IV.
Answer: C
A) He may not have an IRA.
B) He may have an IRA but may not make a contribution for this year.
C) He may contribute 100% of earned income or the maximum allowable IRA limit, whichever is less.
D) He may invest any amount up to 100% of his earned income.
Answer: C
Social Security taxes.
federal unemployment taxes.
federal income tax withholding.
state income tax withholding.
A) III and IV.
B) I and II.
C) I and III.
D) II and IV.
Answer: B
A) current dividend yield has increased.
B) current dividend yield has decreased.
C) current dividend yield has remained the same.
D) dividend yield to maturity has decreased.
Answer: A) current dividend yield has increased.
A) current yield per share has decreased.
B) current yield per share has been unaffected.
C) yield to maturity has gone up.
D) current yield per share has increased.
Answer: D) current yield per share has increased.
A) 10%.
B) 6.7%.
C) 1%.
D) 1.7%.
Answer: B) 6.7%.
A) decrease.
B) remain at 5%.
C) remain at 7%.
D) increase.
Answer: D) increase.
A) examine the corporation's annual reports and other reports, and take legal action if irregularities are found.
B) receive all announced dividends in accordance with the number of shares held.
C) claim company assets in bankruptcy after wages, taxes, creditors and preferred shareholders have been paid.
D) vote in elections for the board of directors and in other important business decisions, such as changes to the charter.
Answer: C) claim company assets in bankruptcy after wages, taxes, creditors and preferred shareholders have been paid.
A) A partner is not personally liable for the debts of the partnership.
B) The owner of a sole proprietorship is not personally liable for the proprietorship's debts.
C) A shareholder of a corporation is not personally liable for the corporation's debts.
D) A shareholder of a corporation has some personal liability for the corporation's debts.
Answer: C) A shareholder of a corporation is not personally liable for the corporation's debts.
The right to vote.
The potential appreciation of stock value.
Tax-free income.
Guaranteed payment of dividends
A) I and II.
B) I and III.
C) II and IV.
D) III and IV.
Answer: A) I and II.
Residual claim to assets at dissolution.
Right to a vote for stock dividends to be paid.
Right to receive an audited financial report on an annual basis.
Claim against dividends in default.
A) I and III.
B) I and IV.
C) II and III.
D) II and IV.
Answer: A) I and III.
A) Less than 1%.
B) Between 1% and 5%.
C) More than 10%.
D) Between 5% and 10%.
Answer: D) Between 5% and 10%.
A) preferred stock.
B) common stock.
C) ETFs.
D) REITs.
Answer: A) preferred stock.
A) stocks and bonds.
B) preferred stocks and bonds.
C) common stocks and convertible bonds.
D) common stocks and preferred stocks.
Answer: D) common stocks and preferred stocks.
A) the dividend is fixed.
B) they have an equal vote.
C) both are evidence of corporate indebtedness.
D) the dividend must be declared by the board of directors.
Answer: D) the dividend must be declared by the board of directors.
A) priority claim to assets at the dissolution of a corporation.
B) typically no voting rights.
C) fixed maturity.
D) fixed rate of return.
Answer: C) fixed maturity.
A) Its value decreases.
B) Its value increases.
C) Its value remains the same.
D) Interest rates and the price of bonds have no impact on the value of stock.
Answer: A) Its value decreases.
A) earnings per share.
B) book value per share.
C) the ability of the company to pay the stated dividend.
D) the company's short-term debt obligations.
Answer: C) the ability of the company to pay the stated dividend.
A) New capital is channeled to the company.
B) Net current assets are decreased.
C) The market value of the stock is decreased.
D) Capital surplus is reduced.
Answer: C) The market value of the stock is decreased.
A) 1.75%.
B) 3%.
C) 8.6%.
D) 5%
Answer: D) 5%.
A) 10%.
B) 15%.
C) 5%.
D) 1%.
Answer: C) 5%.
A) dividend yield to maturity has decreased.
B) current dividend yield has increased.
C) current dividend yield has decreased.
D) current dividend yield has remained the same.
Answer: B) current dividend yield has increased.
A) 10%.
B) 4%.
C) 1%.
D) 3%.
Answer: B) 4%
A) 1%.
B) 1.7%.
C) 10%.
D) 6.7%.
Answer: D) 6.7%.
A) 5%
B) 2%
C) 10%
D) 15%
Answer: A) 5%
A) 15%.
B) 5%.
C) 1.25%.
D) 10%
Answer: B) 5%.
125 shares.
100 shares.
Cost of $25.
Cost of $20.
A) I and II.
B) II and III.
C) II and IV.
D) I and IV.
Answer: D) I and IV.
A) mandatory if the company is profitable.
B) specified in the company charter.
C) determined by its board of directors.
D) voted on by shareholders.
Answer: C) determined by its board of directors.
A) current yield per share has been unaffected.
B) yield to maturity has gone up.
C) current yield per share has increased.
D) current yield per share has decreased.
Answer: C) current yield per share has increased.
Preemptive rights.
Cash.
Its own stock.
Its own bonds.
A) I and IV.
B) II and IV.
C) II and III.
D) I and III.
Answer: C) II and III.
A) 100 shares at $50.
B) 125 shares at $50.
C) 125 shares at $40.
D) 100 shares at $40.
Answer: C) 125 shares at $40.
A) 500000.
B) 2 million.
C) 3 million.
D) 2.5 million.
Answer: D) 2.5 million.
A) Cumulative.
B) Convertible.
C) Callable.
D) Straight.
Answer: C) Callable.
A) the dividend is fixed.
B) they have an equal vote.
C) both are evidence of corporate indebtedness.
D) the dividend must be declared by the board of directors.
Answer: D) the dividend must be declared by the board of directors.
A) sale of preferred stock.
B) a commercial bank.
C) sale of debentures.
D) sale of income bonds.
Answer: A) sale of preferred stock.
A) 25.
B) 100.
C) 1200.
D) 20.
Answer: D) 20.
A) Straight preferred.
B) Convertible preferred.
C) Participating preferred.
D) Callable preferred.
Answer: D) Callable preferred.
A) 0.
B) 8.
C) 16.
D) 24.
Answer: D) 24.
A) convertible preferred stock.
B) ADRs.
C) preferred stock.
D) common stock.
Answer: C) preferred stock.
A) fall.
B) remain unaffected.
C) become volatile.
D) rise.
Answer: D) rise.
A) 25.
B) 10.
C) 5.
D) 15.
Answer: B) 10
A) Unlike debt, preferred stock has no set maturity date.
B) The dividend is fixed except in the case of adjustable preferred.
C) Because there is no set maturity value or redemption date, the holder of preferred stock has to sell his shares in the open market to close out his position.
D) Voting rights of preferred shareholders take precedence over those of common shareholders.
Answer: D) Voting rights of preferred shareholders take precedence over those of common shareholders.
A) call in the stock at less than par value and capture the difference as income.
B) take advantage of high interest rates.
C) issue fixed-rate securities at a yield lower than usual.
D) replace a high, fixed-rate issue with a lower issue after the call date.
Answer: D) replace a high, fixed-rate issue with a lower issue after the call date.
A) Dow Jones Industrial Average.
B) Treasury bill rate.
C) Consumer Price Index.
D) Producer Price Index.
Answer: B) Treasury bill rate.
This year's preferred dividends.
Bond interest.
Corporate taxes.
Common stock dividends.
A) II and IV.
B) II and III.
C) I and III.
D) I and IV.
Answer: B) II and III.
A) pays the current dividends on the preferred, but not the past dividends on the preferred, before paying a dividend on the common.
B) forces conversion of the preferred that is trading at a discount to par, thereby eliminating the need to pay past-due dividends.
C) pays past and current preferred dividends before paying dividends on common stock.
D) pays the preferred dividend before paying the coupons due on its outstanding bonds.
Answer: C) pays past and current preferred dividends before paying dividends on common stock.
A) Noncumulative.
B) Callable.
C) Convertible.
D) Cumulative.
Answer: C) Convertible
A) Common stock.
B) Debentures.
C) Preferred stock.
D) Corporate bonds.
Answer: A) Common stock.
A) Series EE bond.
B) A-rated municipal bond.
C) XYZ Inc., common stock.
D) BAA-rated ABC convertible bond.
Answer: C) XYZ Inc., common stock.
A) maintain proportionate ownership interest in the corporation.
B) serve as an officer on the board of directors.
C) purchase treasury stock.
D) sell stock back to the issuing corporation.
Answer: A) maintain proportionate ownership interest in the corporation.
A) 100 votes for each of 6 directors.
B) 200 votes for each of 3 directors.
C) 600 votes for any 1 director.
D) 300 votes for each of 2 directors.
Answer: B) 200 votes for each of 3 directors.
A) 600 shares at $50 per share
B) 300 shares at $200 per share
C) 1,000 shares at $30 per share
D) No adjustment is made
Answer: D) No adjustment is made
I. Treasury stock is authorized but not yet issued.
II. Treasury stock may pay a reduced dividend.
III. Treasury stock is issued but has no voting or dividend rights.
IV. Treasury stock is previously issued stock that has been repurchased by the issuing company.
A) I and II.
B) I and III.
C) II and IV.
D) III and IV.
Answer: D) III and IV.
A) preferred stock.
B) issued by the U.S. Treasury Department.
C) stock repurchased by the issuer.
D) authorized but unissued stock owned by the company.
Answer: C) stock repurchased by the issuer.
Debentures.
Convertible bonds.
Preferred stock.
Common stock.
A) I and II.
B) I and III.
C) II and IV.
D) III and IV.
Answer: D) III and IV.
A) 0.32.
B) 0.3.
C) 0.4.
D) 0.48.
Answer: A) 0.32.
A) Each shareholder's proportionate equity will be unchanged.
B) The par value will be unchanged.
C) The net worth of the company will be reduced.
D) Retained earnings will be increased.
Answer: A) Each shareholder's proportionate equity will be unchanged.
A) 0.1.
B) 0.25.
C) 0.3.
D) 0.2.
Answer: D) 0.2.
A) 17.
B) 21.
C) 37.
D) 42.
Answer: D
A) Statutory.
B) Progressive.
C) Cumulative.
D) Regular.
Answer: C) Cumulative.
A) none of these.
B) an increase.
C) a decrease.
D) no effect.
Answer: B) an increase.
I. Voting on the composition of the board of directors.
II. Voting on routine decisions in the company's operations.
III. Receiving par value at liquidation.
IV. Receiving a dividend when declared.
A) II and III.
B) I and III.
C) I and IV.
D) II and IV.
Answer: A) II and III.
A) management rather than the board of directors.
B) minority stockholders.
C) majority stockholders.
D) participating preferred stockholders.
Answer: B) minority stockholders.
A) 75.
B) 30.
C) 60.
D) 100.
Answer: A) 75.
A) have 50% more shares at two-thirds the price.
B) have 50% more shares at half the price.
C) have 50% fewer shares at twice the price.
D) have two-thirds fewer shares at a 50% higher price.
Answer: A) have 50% more shares at two-thirds the price.
A) the issuance of convertible bonds.
B) dividends.
C) stock splits.
D) the acceptance of a tender offer from a non-affiliated company.
Answer: B) dividends.
A) 0.2.
B) 0.25.
C) 0.5.
D) 0.8.
Answer: A) 0.2.
A) repurchase 100,000 shares of stock for its treasury.
B) declare a 15% stock dividend.
C) declare a cash dividend.
D) issue convertible bonds.
Answer: D) issue convertible bonds.
A) 560,000.
B) 40,000.
C) 600,000.
D) 960,000.
Answer: A) 560,000.
I. They must approve the payment of dividends.
II. They are entitled to declared dividend distributions in proportion to their ownership.
III. They have residual rights to corporate assets on dissolution.
IV. They have unlimited liability.
A) I and IV.
B) II and IV.
C) II and III.
D) I and II.
Answer: C) II and III.
A) whether the company should issue additional preferred stock.
B) whether a cash dividend is to be declared.
C) which member of the board of directors should be chairman.
D) whether an administrative assistant should be promoted to management.
Answer: A) whether the company should issue additional preferred stock.
A) 300
B) 400
C) 500
D) 100
Answer: D) 100
A) examine the corporation's annual reports and other reports, and take legal action if irregularities are found.
B) receive all announced dividends in accordance with the number of shares held.
C) claim company assets in bankruptcy after wages, taxes, creditors and preferred shareholders have been paid.
D) vote in elections for the board of directors and in other important business decisions, such as changes to the charter.
Answer: C) claim company assets in bankruptcy after wages, taxes, creditors and preferred shareholders have been paid.
A) 6% preferred stock.
B) Treasury stock.
C) Common stock.
D) 10% debentures maturing in 10 years.
Answer: C
I. The share price is reduced by half.
II. The total market value of the outstanding stock decreases.
III. The total market value of the outstanding stock may increase or decrease as a result of the split.
IV. The number of shares doubles.
A) II and III.
B) II and IV.
C) I and IV.
D) I and III.
Answer: C) I and IV.
A) The retained earnings would be decreased by $10 million.
B) The number of shares outstanding would decrease by 50%.
C) The market price of the stock would double.
D) The par value would decrease to $5 per share.
Answer: D) The par value would decrease to $5 per share.
Market price per share.
Number of shares outstanding.
Earnings per share.
Market capitalization of the company.
A) I and III.
B) I and II.
C) II and III.
D) III and IV.
Answer: A) I and III.
Increases the number of outstanding shares
Decreases the number of outstanding shares
Decreases par value per share
Decreases retained earnings
A) II and III
B) II and IV
C) I and III
D) I and IV
Answer: C) I and III
A) another certificate for 200 shares.
B) notice that the investor's 100-share certificate now represents 200 shares.
C) notice to send in the current certificate to be replaced by a new certificate for 200 shares.
D) another certificate for 100 shares.
Answer: D) another certificate for 100 shares.
A) a proportionately increased interest in the company.
B) greater exposure.
C) no effective change in the value of the position.
D) a proportionately decreased interest in the company.
Answer: C) no effective change in the value of the position.
Residual claim to assets at dissolution.
Right to a vote for stock dividends to be paid.
Right to receive an audited financial report on an annual basis.
Claim against dividends in default.
A) I and IV.
B) II and III.
C) II and IV.
D) I and III.
Answer: D) I and III.
A) the over-the-counter market.
B) Archipelago Exchange (ArcaEx).
C) National Daily Quotation Service.
D) National Association of Securities Dealers Automated Quotations.
Answer: A) the over-the-counter market.
Common stockholders.
Preferred stockholders.
Convertible bondholders.
Mortgage bondholders.
A) I and III.
B) II and IV.
C) III and IV.
D) I and II.
Answer: D) I and II.
A) Being able to divest of the shares easily
B) Using real estate as a potential hedge against the movement of other equity securities the customer owns
C) Having a professionally managed portfolio of commercial real estate assets
D) Dividend treatment
Answer: D) Dividend treatment
I. Hybrid REITs invest in both commercial property and residential property.
II. Some REITs hold no real property but hold mortgages on commercial property instead.
III. All dividend disbursements made by REITs will be recognized as qualified dividends by the IRS.
IV. Dividends are taxed at the investor's ordinary income tax rate.
A) I and III
B) II and IV
C) II and III
D) I and IV
Answer: B) II and IV
A) REITs have guaranteed minimum dividends.
B) Any losses from the real estate portfolio flow through to the REIT shareholders.
C) REIT shares cannot be bought or sold in the secondary market and are, therefore, considered illiquid.
D) Dividends from REITS are taxed as ordinary income.
Answer: D) Dividends from REITS are taxed as ordinary income.
A) a trust indenture.
B) a real estate investment trust.
C) a unit investment trust.
D) an open-end investment company.
Answer: B) a real estate investment trust.
A) Mortgage-secured bond.
B) Collateralized mortgage obligation.
C) Government National Mortgage Association pass-through certificate.
D) Real estate investment trust share.
Answer: D) Real estate investment trust share.
A) Dividends taxed at full ordinary income rates.
B) Redeemable.
C) Managed.
D) Secondary market.
Answer: B) Redeemable.
A) taxed as ordinary income.
B) taxed at a maximum rate for qualified dividends.
C) taxed as long-term capital gains.
D) not taxed.
Answer: A) taxed as ordinary income.
A) stock dividends.
B) capital losses.
C) capital gains.
D) cash dividends.
Answer: B) capital losses.
A) they must to qualify under Subchapter M, distribute at least 90% of their net investment income.
B) shares are publicly traded.
C) they must pass along losses to shareholders.
D) they must invest at least 75% of their assets in real estate-related activities.
Answer: C) they must pass along losses to shareholders.
A) Interest in a real estate limited partnership.
B) Direct investment in a shopping center renting retail space to a broad variety of stores.
C) Privately placed investment.
D) Real estate investment trust.
Answer: D) Real estate investment trust.
A) diversification.
B) professional management.
C) tax deferral.
D) liquidity.
Answer: C) tax deferral.
A) the issuer must redeem certificates on shareholder request.
B) a mortgage REIT represents pooled capital for real estate financing.
C) investors receive dividends periodically.
D) the certificates are publicly traded.
Answer: A) the issuer must redeem certificates on shareholder request.
It is traded on an exchange or over the counter.
It is professionally managed.
It passes through both gains and losses to investors.
It is a type of limited partnership.
A) I and II.
B) I and IV.
C) II and III.
D) III and IV.
Answer: A) I and II.
A) taxed as a capital gain in the U.S.
B) subject to a foreign withholding tax.
C) tax-free in the country of origin.
D) tax-free in both the country of origin and in the U.S.
Answer: B) subject to a foreign withholding tax.
A) facilitate trading foreign securities in U.S. markets by U.S. citizens living in the United States.
B) facilitate trading U.S. securities in foreign markets by U.S. citizens living abroad.
C) finance foreign trade in which U.S. citizens are engaged.
D) sweeten a bond offering.
Answer: A) facilitate trading foreign securities in U.S. markets by U.S. citizens living in the United States.
A) Foreign income tax.
B) Federal income tax.
C) State income tax.
D) Excise tax.
Answer: A) Foreign income tax.
A) The investor has the right to vote at stockholders' meetings.
B) The investor receives preemptive rights should the issuer make an additional stock offering.
C) The investor avoids the currency risk that characterizes many foreign investments.
D) The investor can buy, sell, and receive dividends in U.S. dollars rather than a foreign currency.
Answer: D) The investor can buy, sell, and receive dividends in U.S. dollars rather than a foreign currency.
A) market risk.
B) political risk.
C) liquidity risk.
D) foreign currency risk.
Answer: D) liquidity risk.
A) foreign branch of a domestic bank.
B) domestic branch of a domestic bank.
C) domestic branch of a foreign bank.
D) foreign branch of a foreign bank.
Answer: A) foreign branch of a domestic bank.
A) Federal income tax.
B) State income tax.
C) Foreign income tax.
D) Excise tax.
Answer: D) Excise tax.
Dividends are payable in the underlying foreign currency.
Dividends are payable in U.S. dollars.
Holders have voting rights.
Holders do not have voting rights.
A) I and III.
B) I and IV.
C) II and III.
D) II and IV.
Answer: D) II and IV.
A) foreign trading of domestic securities.
B) foreign trading of U.S. government securities.
C) domestic trading of U.S. government securities.
D) domestic trading of foreign securities.
Answer: D) domestic trading of foreign securities.
They are issued by large domestic commercial banks.
They are issued by foreign banks.
They facilitate U.S. trading in foreign securities.
They facilitate a foreign investor who wants to trade U.S. securities.
A) II and IV.
B) I and III.
C) I and IV.
D) II and III.
Answer: B) I and III.
A) dividends are received in U.S. currency.
B) transactions are done in U.S. currency.
C) currency risk is virtually eliminated.
D) ADRs fall under the oversight of the SEC.
Answer: C) currency risk is virtually eliminated.
A) the right to receive dividends in U.S. dollars.
B) the right to receive the underlying foreign security.
C) the right to sell the ADR in the foreign market.
D) the right to sell in the secondary market.
Answer: C) the right to sell the ADR in the foreign market.
A) U.S. security trading in a foreign market.
B) U.S. security trading in both the U.S. and a foreign market.
C) foreign security trading in both the U.S. and a foreign market.
D) foreign security trading in the U.S. market.
Answer: D) foreign security trading in the U.S. market.
A) warrants.
B) treasury stock.
C) American depositary receipts.
D) rights.
Answer: C) American depositary receipts.
A) Selling at the market.
B) Exercising.
C) Redeeming them from the issuer for cash.
D) Giving the rights to his son.
Answer: C) Redeeming them from the issuer for cash.
A) Warrants have longer lifetimes than rights.
B) Warrants may be attached to another of the issuer's securities.
C) Warrants have an exercise price above the current market price of the common stock when issued.
D) Warrants may not be traded in the secondary market.
Answer: D) Warrants may not be traded in the secondary market.
The exercise prices of stock rights are usually below CMV of the underlying security at time of issue.
The exercise prices of warrants are usually above CMV of the underlying security at time of issue.
Both rights and warrants may trade in the secondary market and may have prices that include a speculative (time) value.
Warrants are often issued attached to a bond issue to reduce the interest costs to the issuer.
A) I, II, III and IV.
B) I only.
C) I and II.
D) I, II and III.
Answer: A) I, II, III and IV.
A) the subscription price is below the CMV.
B) it is issued to current stockholders.
C) the rights are marketable.
D) the subscription period is up to 2 years.
Answer: D) the subscription period is up to 2 years.
A) To improve the marketability of the bond issue.
B) To increase the dilution of the current shareholders.
C) To decrease the dilution of the current shareholders.
D) To make the bonds convertible into the issuer's common stock.
Answer: A) To improve the marketability of the bond issue.
A) 800,000 shares and 400,000 warrants.
B) 800,000 shares and 200,000 warrants.
C) 1.6 million shares and 800,000 warrants.
D) 1.6 million shares and 400,000 warrants.
Answer: C) 1.6 million shares and 800,000 warrants.
A) 3.
B) 2.5.
C) 5.
D) 15.
Answer: A) 3.
A) 5
B) 15
C) 10
D) 3
Answer: C) 10
A) a letter of intent.
B) call options.
C) warrants.
D) futures.
Answer: C) warrants.
A) the right of current shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock.
B) the right of shareholders to buy any future issue of the company's preferred stock prior to submitted public orders.
C) the right of shareholders to maintain their percentage ownership of a company by selling a proportional number of warrants.
D) the right of shareholders to purchase company shares at a specific price within the next 5 years.
Answer: A) the right of current shareholders to maintain their fractional ownership of a company by buying a proportional number of shares of any future issue of common stock.
A) 600,000.
B) 400,000.
C) 100,000.
D) 110,000.
Answer: B) 400,000.
A) 200 rights, 5 per share.
B) 100 rights, 5 per share.
C) 100 rights, 20 per share.
D) 200 rights, 20 per share.
Answer: A) 200 rights, 5 per share.
They pay dividends.
They are debt securities.
They allow for the purchase of common stock at a fixed price.
They are equity-equivalent securities.
A) III and IV
B) I and II
C) II and III
D) II and IV
Answer: A) III and IV
A) $10 million.
B) $12.8 million.
C) $20 million.
D) $6.4 million.
Answer: D) $6.4 million.
A) Warrants give the holder a perpetual interest in the issuer's stock.
B) Warrants' terms are generally shorter than rights' terms.
C) Warrants are safer than corporate bonds.
D) Warrants are often issued with other securities to make the offering more attractive.
Answer: D) Warrants are often issued with other securities to make the offering more attractive.
A) most commonly offered in connection with debentures to sweeten the offering.
B) issued by a corporation.
C) traded in the secondary market.
D) short-term instruments that become worthless after the expiration date.
Answer: D) short-term instruments that become worthless after the expiration date.
A) they are most commonly offered with debentures to make the offering more attractive.
B) they are short-term instruments that become worthless after the expiration date.
C) they are issued by a corporation.
D) they are traded in the secondary market.
Answer: A) they are most commonly offered with debentures to make the offering more attractive.
A) increase the spread to the underwriter.
B) increase the capital raised by the issuer through the bond offering.
C) increase the price of the issue to the public.
D) increase the attractiveness of the issue to the public.
Answer: D) increase the attractiveness of the issue to the public.
A) 8 shares; $80.
B) 8 shares; $90.
C) 9 shares; $80.
D) 9 shares; $90.
Answer: D) 9 shares; $90.
A) ADR.
B) Convertible preferred stock.
C) Class B common stock.
D) Warrant.
Answer: D) Warrant.
A) Increase in earnings per share.
B) Reduction of the debt securities' interest rate.
C) Dilution of shareholders' equity.
D) Reduction of the number of shares outstanding.
Answer: B) Reduction of the debt securities' interest rate.
A) 8 million.
B) 7.5 million.
C) 6.5 million.
D) 7 million.
Answer: B) 7.5 million.
A) the issuer.
B) the SEC.
C) the NYSE.
D) FINRA.
Answer: C) the NYSE.
A) the business day prior to the regular way ex-date.
B) the record date.
C) on the ex-date.
D) the day after the record date.
Answer: B) the record date.
A) 15.
B) 60.
C) 150.
D) 600.
Answer: D) 600.
A) is set by the issuing corporation to determine which stockholders will receive a declared dividend.
B) is fixed by the SEC to determine which investors own stock.
C) indicates when the public offering of new issues can be made legally.
D) is set by the issuing corporation as the mailing date for distribution of cash dividends.
Answer: A) is set by the issuing corporation to determine which stockholders will receive a declared dividend.
date on and after which the buyer is entitled to the dividend.
date on and after which the seller is entitled to the dividend.
second business day before the record date.
second business day after the record date.
A) I and IV.
B) II and IV.
C) II and III.
D) I and II.
Answer: C) II and III.
A) Tuesday, May 15.
B) Wednesday, May 16.
C) Thursday, May 17.
D) Monday, May 14.
Answer: D) Monday, May 14.
I. entitled to the dividend if the trade is done regular way.
II. not entitled to the dividend if the trade is done regular way.
III. entitled to the dividend if the trade is done with cash settlement.
IV. not entitled to the dividend if the trade is done with cash settlement.
A) II and III.
B) II and IV.
C) I and IV.
D) I and III.
Answer: C) I and IV.
A) Tuesday, January 20.
B) Thursday, January 15.
C) Wednesday, January 7.
D) Thursday, January 8.
Answer: B) Thursday, January 15.
A) ex-dividend date.
B) declaration date.
C) payable date.
D) record date.
Answer: A) ex-dividend date.
A) 2nd business day following the record date.
B) 2nd business day preceding the settlement date .
C) 3rd business day preceding the record date.
D) 2nd business day preceding the record date.
Answer: D) 2nd business day preceding the record date.
A) SEC.
B) Registrar.
C) FINRA.
D) Transfer agent.
Answer: B) Registrar.
Audit the transfer agent.
Accounting for the number of shares outstanding.
Canceling old shares.
Transferring shares into the new owners' names.
A) I and II.
B) I and IV.
C) II and III.
D) III and IV.
Answer: D) III and IV.
A) Accounting for the number of shares outstanding.
B) Recording the names of stockholders on the corporation's books.
C) Canceling old shares.
D) Transferring shares into the name of a new owner.
Answer: A) Accounting for the number of shares outstanding.
A) It is used in place of the registered owner's signature.
B) It facilitates tracking and identification of a security.
C) It is evidence of ownership in a corporation.
D) It ensures that the security is negotiable.
Answer: B) It facilitates tracking and identification of a security.
A) $125 per share.
B) $150 per share.
C) $200 per share.
D) $175 per share.
Answer: D) $175 per share.
A) 1 odd lot.
B) 25 odd lots.
C) 25 round lots.
D) 1 round lot.
Answer: C) 25 round lots.