Review Test Questions

(1) At the annual meeting of Walgreens Boots Alliance Inc. five directors will be elected. Under the cum See Answer

(2) Southwest Gas would like to distribute treasury stock it currently holds to stockholders of record a See Answer

(3) Stockholders must approve which of the following? See Answer

(4) A corporation buys back its stock on the open market to: I. increase earnings per share II reduc See Answer

(5) Which of the following describes cumulative voting rights? See Answer

(6) You hold a 10M AMZN 6s bond callable at 102 in 2022 that matures in 2027. How much money will you r See Answer

(7) Which of the following may be the underlying for a listed option? See Answer

(8) Options are best described as: See Answer

(9) A firm is the managing underwriter for a syndicate underwriting a new issue of general obligations m See Answer

(10) Sandy Smith purchased 200 shares of Knight-Swift (KNX) from a broker at $60 per share. She deposits See Answer

(11) Which of the following is NOT found in a final prospectus? See Answer

(12) Under SEC rules, a registered broker-dealer must report to its customers its financial condition, in See Answer

(13) Which of the following statements are true of Treasury stock? I. It has voting rights and is entitle See Answer

(14) Limited liability regarding ownership in a large, publicly held U.S. Corporation means all of the fo See Answer

(15) Stockholders preemptive rights include which of the following rights? See Answer

(16) Common stockholders' rights include which of the following? I. Residual claim to assets at dissoluti See Answer

(17) When a corporation holds treasury stock, it has the option of: See Answer

(18) The holders of which of the following securities are considered owners of the corporation? I. Mortga See Answer

(19) A corporation needs shareholder approval for which of the following? See Answer

(20) A broker-dealer must use special procedures whenever it opens a municipal securities account for: See Answer

(21) Under SEC rules, a registered broker-dealer must report to its customers its financial condition, in See Answer

(22) Which of the following are considered to have equity position in a corporation? I. Common stockhol See Answer

(23) JPMorgan Chase (JPM) which has 7% $100 par cumulative preferred stock outstanding, has the following See Answer

(24) In a portfolio containing common stock, preferred stock, convertible preferred stock and guaranteed See Answer

(25) A company with cumulative non-participating voting preferred stock would do which of the following? See Answer

(26) Philip Fisher owns 100 shares of Abbott Labs (ABT) when he reads the news about a 2-for-1 stock spli See Answer

(27) An investor has 100 shares of Tesla (TSLA) when the stock undergoes a 5-for-1 split. After the split See Answer

(28) A company may pay dividends in which of the following ways? I. Stock of another company II. Cash See Answer

(29) Netflix (NFLX) declares a 7-for-1 stock split. How many additional shares are issued to an investor See Answer

(30) Xylem (XYL) common stock is currently selling for $75 per share with a quarterly dividend of $0.75. See Answer

(31) Intel (INTC) stock is $0.001 par value and is selling in the market for $60 per share. If the curren See Answer

(32) Bank of America (BAC) has earnings of $4 per share and pays a $0.50 quarterly dividend. BAC's market See Answer

(33) Jim Rogers recently purchased 100 shares of First Citrus Bank (FCIT) at $50 per share. He hears that See Answer

(34) Which of the following is(are) NOT a registrar's function(s)? I. Overseeing the transfer agent I See Answer

(35) What is the function of a CUSIP number? See Answer

(36) An investor who wants to subscribe to a rights offering mails those rights to the: See Answer

(37) American Airlines Corporation (AAL) has a rights offering. Before the rights offering American Airli See Answer

(38) Which of the following would be the benefit to a corporation of attaching warrants to a new issue of See Answer

(39) Tesla (TSLA) decides to raise $5 billion through a rights offering, it's second in three months. Bar See Answer

(40) GameStop (GME) decides to offer 5 million additional shares to existing stockholders. What is this c See Answer

(41) For which of the following reasons may a new bond issue a warrant? See Answer

(42) All of the following pay dividends EXCEPT which of these? See Answer

(43) Tailwind International (TWNI) has issued 1 million shares of common stock and is now offering 600,00 See Answer

(44) ReNew Power (RNW), based in India, is offering 600,000 units to the public at $18 per unit. Each uni See Answer

(45) ADRs facilitate which of the following? I. Foreign trading of domestic securities II. Domestic tr See Answer

(46) Which of the following statements is(are) true concerning ADRs? I. They are issued by large commer See Answer

(47) ADR owners may have all of the following rights EXCEPT See Answer

(48) From which of the following Investments is an investor entitled to receive dividends? See Answer

(49) Which of the following risks are associated with ADRs that do NOT apply to U.S.-based equities? See Answer

(50) Which of the following is(are) a characteristic of a REIT? I. It offers limited liability II. It See Answer

(51) Which of the following statements is(are) true about REITs? I. Operating losses flow through direc See Answer

(52) To avoid taxation at the corporate level, a REIT must derive at least ¾ of its income from real pro See Answer

(53) REITs provide which of the following features to investors? See Answer

(54) Jim Rogers holds a VZ 6s bond callable at 102 in 2022 that matures in 2027. How much will Jim recei See Answer

(55) All of the following corporate bonds have call options, and all have passed their call protection pe See Answer

(56) Ford Motor Co. (F) has created a sinking fund for the purpose of retiring bonds issued several years See Answer

(57) Qualcomm (QCOM) has decided to prerefund a bond issue that still has several years remaining to matu See Answer

(58) All of the following statements are true about bonds registered as to principal only EXCEPT that: See Answer

(59) John Paulson is long 10 PLTR Jul 50 calls at 4½. How many options does John own? See Answer

(60) John Paulson is long 10 NVDA Jul 465 calls at 4½. What is the name of the underlying instrument? See Answer

(61) Paul Jones is long 10 VZ Jul 50 calls at 4.50. The contract gives Paul the: See Answer

(62) When Ford Motor (F) sells for 27 Kyle buys 10 F Jul 25 calls at 4.50. What is the total premium Kyle See Answer

(63) Ezra is long 10 GME Jul 250 calls at 4.50. How any shares of GME stock will change hands if Ezra exe See Answer

(64) Which term best describes the following situation: Marcus sells 1 GOOG Nov 2,700 put at 25.50 See Answer

(65) Which term best describes the following situation: James has the right to sell 100 shares of MSFT at See Answer

(66) Which term best describes the following situation: Belle receives a $400 premium for 1 Oct NET put. See Answer

(67) Which term best describes the following situation: Nick has the obligation to buy 100 shares of AAPL See Answer

(68) Which term best describes the following situation: Scarlett is long 1 ORCL Apr 90 put. See Answer

(69) Which term best describes the following situation: Jason pays $225 for the right to buy 100 shares o See Answer

(70) Which term best describes the following situation: Paris must sell 100 shares of Plug Power (PLUG) a See Answer

(71) A call option is in-the-money when the market price of the underlying stock is: See Answer

(72) LTHM stock is trading at 25¾. LTHM Jul 25 calls are trading at a premium of 2. What is the intrinsi See Answer

(73) LTHM stock is trading at 25¾. LTHM Jul 25 calls are trading at a premium of 2. What is the time val See Answer

(74) If Domo Software (DOMO) is trading at 43 and the DOMO Apr 40 call is trading at 4, what is the intri See Answer

(75) The term that describes options of the same exercise price and expiration date for the same underlyi See Answer

(76) A call is in-the-money when which of the following occurs? See Answer

(77) IBM closed at 137.5, the IBM Jan 135 calls closed at 3.5 and IBM Feb 135 calls closed at 4.65. What See Answer

(78) JPMorgan Chase (JPM) closed at 141.12 and JPM Mar 145 puts closed at 5.25. The puts are: See Answer

(79) Wells Fargo (WFC) closed at 51.32 and the WFC Feb 60 calls closed at 0.37. The calls are: See Answer

(80) Palantir Technologies (PLTR) closed at 13.06 and the PLTR Mar 10 puts closed at .75. The puts are: See Answer

(81) Netflix (NFLX) closed at 366.42 and the NFLX Dec 365 puts closed at 1.70. The puts are: See Answer

(82) An investor is interested in buying 1 Bank of America (BAC) Aug 50 call representing 115 shares of s See Answer

(83) Which of the following transactions may be executed in a cash account? I. The purchase of a call o See Answer

(84) Corporations may issue which of the following bonds? I. Equipment trust bonds II. Double-barreled See Answer

(85) Term bonds are quoted according to: See Answer

(86) Which of the following levels of NASDAQ include subject quotes? See Answer

(87) Which of the following best describes a guaranteed bond? See Answer

(88) Which of the following best describes a guaranteed bond? See Answer

(89) The call premium on a callable bond is: See Answer

(90) What kind of secured bond is typically issued by transportation companies? See Answer

(91) What is the MOST important consideration for an investor when making decisions about investments? See Answer

(92) If preservation of capital is your primary investment objective, which of the following securities w See Answer

(93) Which of these investments would be appropriate for an investor interested in capital growth? See Answer

(94) Which of the following would NOT be considered a liquid security? See Answer

(95) Which of the following might change an investor's investment objectives? See Answer

(96) Your investment decisions should be mostly based on: See Answer

(97) Which of the following securities are NOT subject to reinvestment risk? See Answer

(98) Harris is a 60 year old investor. Which of the following strategies would likely be recommended for See Answer

(99) Jason's objective is total return. He currently has 100% of his portfolio invested in common stocks See Answer

(100) Which of the following would most likely meet the needs of an investor who's investment objective is See Answer

(101) A wealthy investor is in the highest tax-bracket and has a portfolio with a nice mix of corporate bo See Answer

(102) Eric Smith is a 60-year investor who has two hundred thousand invested in the market. He would like See Answer

(103) Which of the following would make sure an investor's portfolio is diversified? See Answer

(104) What would be the best strategy for a new investor who has $10,000 to invest and wants to build a di See Answer

(105) Which of the following is NOT an exchange market? See Answer

(106) You have entered a call option order with your broker-dealer. The order could be executed which of t See Answer

(107) The over-the-counter market may best be described as a: See Answer

(108) To be listed on the NYSE Euronext, which of the following is not required? See Answer

(109) Which of the following does NOT need to be signed to open a margin account? See Answer

(110) Which of the following documents discloses the interest rate to be charged to a margin account inves See Answer

(111) If the United States has been in a economic decline for the past three quarters, the U.S. economy wo See Answer

(112) Which of the following is measured in constant dollars? See Answer

(113) During an easy money yield curve, which of the following is true? See Answer

(114) Which of the following is a leading economic indicator? See Answer

(115) Approximately how many days is the cooling-off period for a new issue? See Answer

(116) Morgan Stanley is offering an IPO that will be listed on any exchange. How long after the effective See Answer

(117) Which of the following is NOT a type of bond underwriting? See Answer

(118) A tombstone ad includes all of the following EXCEPT which? See Answer

(119) A primary offering does NOT do which of the following? See Answer

(120) Which of the following is NOT a type of state securities regulation? See Answer

(121) Which of the following are considered securities under the Securities Act of 1933? See Answer

(122) Under the Securities Act of 1933, the SEC has the authority to approve new issues of common stock. See Answer

(123) What is the purchase of stock by the underwriters to support the market price of a stock immediately See Answer

(124) A stabilizing bid may be entered at a price at or slightly above the public offering price. See Answer

(125) The transfer agent maintains records of a corporation's stock and bond owner plus mails and cancels See Answer

(126) An investor opens a margin account by selling short $8,000 worth of securities. What is the margin c See Answer

(127) What is the minimum equity requirement for a pattern day trader? See Answer

(128) What is the deadline for meeting a margin call? See Answer

(129) Which of the following securities would NOT be exempt from Regulation T margin requirement. See Answer