equities

ABC 10% $100 par preferred is trading at $115 in the market. The current yield is: A 8.7% B 9.5% C 10% D 11.5%

A

An investor has 300 shares and is voting for 3 open board seats. Which statement is correct if the election employs the cumulative voting method? A Cumulative voting gives the shareholder a disproportionate voting weight and allows her to cast a maximum of 900 votes for a favored director. B Cumulative voting gives the shareholder a disproportionate voting weight and allows her to cast a maximum of 300 votes for a favored director. C Cumulative voting gives the shareholder a proportionate voting weight and allows her to cast a maximum of 900 votes for a favored director. D Cumulative voting gives the shareholder a proportionate voting weight and allows her to cast a maximum of 300 votes for a favored director.

A

A foreign security held in foreign branches of U.S. bank is a(n): A ADR B LIBOR C Eurodollar deposit D Banker's Acceptance

A.

ABC Company has issued 13%, $100 par cumulative preferred stock. Two years ago, ABC paid a preferred dividend of $8. Last year, it paid a preferred dividend of $12 per share. This year, ABC wishes to pay a common dividend. In order to make the distribution to common shareholders, each preferred share must be paid a dividend of: A $14 B $19 C $20 D $26

B

PDQ Company $10 par common stock is currently trading at $40. PDQ is currently paying a quarterly common dividend of $.90 per share. The current yield of PDQ stock is: A 2.25% B 4% C 9% D 10%

C

All of the following pay dividends EXCEPT: A Preferred Stock B ADRs C Rights D Real Estate Investment Trust Shares

C.

Which term applies to common stock? A convertible B redeemable C non-negotiable D non-callable

D

A proxy given to a caretaker to vote a stockholder's shares is a: A power of attorney B trading authorization C discretionary authority D voting trust

a

All of the following securities represent equity ownership of a corporation EXCEPT: A Convertible preferred stock B Warrants C Preferred stock D Common stock

b

As interest rates fall, preferred stock prices will: A remain unaffected B rise C fall D fluctuate

b

The definition of Treasury Stock is: A issued stock minus authorized stock B issued stock minus outstanding stock C authorized stock minus outstanding stock D outstanding stock minus authorized stock

b

All of the following features are common to both preferred stock and bonds EXCEPT: A Fixed rate B Can be callable C Fixed maturity date D Semi-annual payments

c

Which statement is TRUE about American Depositary Receipts? A ADR holders have voting and pre-emptive rights B ADRs facilitate domestic trading of U.S. securities in foreign markets C holders are entitled to dividends if declared D ADRs are issued by foreign banks

c

Dividends on preferred stock may only be paid in: A Common shares of another issuer B Common shares of the same issuer C Cash D Preferred stock of the same issuer

c.

An ADR has been issued where each ADR equals .1111 ordinary shares of the foreign issuer. If a client wished to buy enough ADRs to cover 100 ordinary shares, how many ADRs must be purchased? A 1 B 90 C 100 D 900

d

A customer buys 100 shares of preferred at $51 per share. The par value is $50. The dividend rate is 8%. Each dividend payment would be: A $200 B $400 C $600 D $800

A

All of the following statements about warrants are true EXCEPT: A At issuance, warrants have intrinsic value B Warrant valuation is directly influenced by the valuation of the company's common stock C Warrant valuation reflects the life of the instrument D Warrant valuation reflects market expectations for future earnings of the company

A

All of the following are terms associated with preferred stock EXCEPT: A renewable B cumulative C negotiable D convertible

A.

All of the following statements about warrants are true EXCEPT? A Warrants are issued to make corporate senior securities offerings more attractive to investors B Warrants typically give the holder a perpetual interest in the issuer's underlying common stock C Warrants trade separately from the stock of the company D Warrants have a longer term than rights

B

The essential difference between a sponsored and an unsponsored ADR is: A SEC registration B Issuer sponsorship C Bank sponsorship D Broker-dealer market making

B

Which statement is TRUE regarding warrants? A Warrants are typically issued with an exercise price that is higher than the stock's current market price and would be exercised when the stock's market price is below the warrant strike price B Warrants are typically issued with an exercise price that is higher than the stock's current market price and would be exercised when the stock's market price is above the warrant strike price C Warrants are typically issued with an exercise price that is lower than the stock's current market price and would be exercised when the stock's market price is below the warrant strike price D Warrants are typically issued with an exercise price that is lower than the stock's current market price and would be exercised when the stock's market price is above the warrant strike price

B

Stockholder approval is needed if a corporation wishes to: A pay a cash dividend B split its stock 2 for 1 C repurchase shares for its Treasury D pay a stock dividend

B.

A company's common stock is selling in the market at a "multiple of 15". If the market price of the common stock is currently $10, what is the earnings per share? A $.15 B $.16 C $.67 D $1.50

C

A corporation has issued 50,000,000 shares of common stock at $2 par. The corporation has 10,000,000 shares of Treasury Stock on its books. The aggregate value of the outstanding shares is: A $20,000,000 B $40,000,000 C $80,000,000 D $100,000,000

C

If interest rates fall, issuers most likely will call: A all preferred issues B preferred issues with below market interest rates C preferred issues with above market interest rates D only preferred issues with high call premiums

C

Common shareholders have all of the following rights EXCEPT the right to: A receive a dividend if one is declared by the Board of Directors B remaining assets in a liquidation of the company after all other claimants C inspect the minutes of meetings of the Board of Directors D vote for each individual proposed for election to the Board of Directors

C.

What type of preferred stock can move in price as the price of the common stock moves? A Straight preferred B Cumulative preferred C Convertible preferred D Participating preferred

C.

Corporate dividend payments can be made in all of the following ways EXCEPT: A cash or company products B additional common shares of that company C additional common shares of another company D listed options of that company

D

Which statement is BEST regarding participating preferred stock? A The dividend rate is fixed B The dividend rate varies depending on the decision of the Board of Directors C The dividend rate is fixed as to maximum but not as to minimum D The dividend rate is fixed as to minimum but not as to maximum

D

Which statement is TRUE regarding rights? A Rights give the holder the long term option to buy stock B Rights typically give the holder a 6-9 month option to buy stock C The exercise price of a right is set at a premium to the stock's current market price D The exercise price of a right is set at a discount to the stock's current market price

D