Term
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Definition
| London Interbank Offered Rate |
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Term
| Dividends on preferred stock may only be paid in: |
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Definition
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Term
| A company wants to raise capital using a security that will give the subscribers voting rights. What should the company issue? |
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Definition
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Term
| The orders that are higher in price than the current market are: |
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Definition
| Open Sell Limits and Open Buy Stops |
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Term
| Which statement is TRUE regarding the effect of a repurchase of Treasury Stock? |
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Definition
| Outstanding shares are reduced and Earnings Per Share are increased |
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Term
| A corporate bond which obligates the issuer to pay interest ONLY if the company meets a specified earnings test is a(n): |
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Definition
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Term
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Definition
| participating unit investment trust |
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Term
| An individual would examine a company's Price to Earnings Ratio in order to: |
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Definition
| determine if the stock is fairly valued |
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Term
| Buy stop orders are placed: |
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Definition
| above the current market and triggered as the market rises |
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Term
| Which of the following do NOT have an equity position? |
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Definition
| Convertible debenture holders |
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Term
| A company whose stock price has declined greatly decides to reverse split its stock 1:20. Prior to the split, the stock traded at $.50 per share. As of the ex date, the price per share will be: |
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Definition
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Term
| Which call covenant MUST be considered when computing the dollar price of a municipal premium bond quoted on a yield basis? |
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Definition
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Term
| All of the following actions will dilute shareholders' equity EXCEPT: |
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Definition
| payment of a stock dividend |
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Term
| Which statement is TRUE about the Government National Mortgage Association (GNMA)? |
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Definition
| GNMA is owned by the U.S. Government and issues pass through certificates which are guaranteed by the U.S. Government |
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Term
| An unpriced order that is routed to a securities trading venue is a: |
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Definition
| market order and is filled immediately |
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Term
| The feasibility study prepared in connection with a new municipal revenue bond offering is performed by the: |
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Definition
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Term
| Trades of all of the following will settle in Fed Funds EXCEPT: |
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Definition
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Term
| A customer buys a U.S. Government bond on Friday, June 14th in a regular way trade. The trade settles on: |
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Definition
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Term
| A customer places an order to buy bonds. The order reads "Buy 5M ABC 9s M '45 @ 90 Stop Limit GTC." After the order is elected, at which of the following prices may the order be executed? |
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Definition
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Term
| What is the main objective of investing in Equity REITs? |
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Definition
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Term
| During periods of stable interest rates, which type of preferred stock will have the greatest price volatility? |
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Definition
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Term
| Preferred stock market valuation is based primarily upon: |
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Definition
| long term market interest rate levels |
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Term
| What determines the purchase price of a share of a closed-end management company? |
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Definition
| The supply and demand for the shares in the market |
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Term
| What term would apply to Authorized Stock? |
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Definition
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Term
| Payment of interest and principal on Ginnie Mae pass through certificates is: |
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Definition
| backed by the faith and credit of both GNMA and the U.S. Government |
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Term
| A "qualified" legal opinion is one which: |
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Definition
| gives a conditional affirmation of the legality of the securities |
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Term
| Which of the following securities cannot be margined? |
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Definition
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Term
| The principal difference between an open end management company and a closed end management company is: |
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Definition
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Term
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Definition
| pay interest semi-annually |
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Term
| Which of the following terms apply to publicly traded fund shares? |
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Definition
| Negotiable with a one-time stock issuance |
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Term
| A customer gives a power of attorney to a caretaker to vote his shares on his behalf at the company's annual meeting. Which statement is TRUE? |
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Definition
| This is known as a proxy which may be revoked prior to the annual meeting |
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Term
| Which statement is TRUE about stock cost basis reporting? |
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Definition
| Stock cost basis is reported on Form 1099-B and FIFO is the default assumption |
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Term
| In a corporate liquidation, the last to get paid is: |
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Definition
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Term
| Which statement is TRUE about preferred stock? |
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Definition
| When interest rates rise, preferred stock prices fall |
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Term
| A political subdivision wishes to issue a bond backed by taxes on cigarettes and gasoline. It would most likely issue a(n): |
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Definition
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Term
| Money market discount instruments are quoted on a: |
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Definition
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Term
| To smooth out tax collections, a municipality will issue a: |
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Definition
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Term
| All of the following are types of preferred stock EXCEPT: |
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Definition
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Term
| Which type of real estate limited partnership offers no depreciation benefit? |
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Definition
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Term
| Variable rate municipal notes avoid which of the following risks? |
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Definition
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Term
| Which of the following is the right of a common shareholder? |
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Definition
| Right to receive a dividend |
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Term
| A company's common stock is selling in the market at a "multiple of 20". If the market price of the common stock is currently $10, what is the earnings per share? |
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Definition
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Term
| A customer places an order to sell 100 shares of ABC stock that he cannot deliver by settlement date. The order ticket should be marked: |
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Definition
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Term
| To smooth out cash flow, a corporation will issue: |
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Definition
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Term
| Shareholder approval would be needed if a corporation wishes to: |
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Definition
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Term
| Corporate bonds are usually: |
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Definition
| term bonds and are quoted on a percentage of par basis |
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Term
| ABC gold mining company has issued a preferred stock. Dividends on the issue may be paid as: |
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Definition
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Term
| REITs can invest in all of the following EXCEPT: |
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Definition
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Term
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Definition
| are bought at a discount and mature at par |
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Term
| An inefficient trading market is one with: |
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Definition
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