In a corporate liquidation, the last to get paid is:
A. Unpaid wages and taxes
B. Bondholders
C. Preferred stockholders
D. Common stockholders - D. Common stockholders
All of the following are types of oil and gas direct participation programs EXCEPT:
A. Balanced
B. Income
C. Exploratory
D. Developmental - A. Balanced
The term "publicly traded fund" is the common name for a(n):
A. open end management company
B. closed end management company
C. fixed unit investment trust
D. participating unit investment trust - B. closed end management company
When comparing a mutual fund to a hedge fund, which statement is FALSE?
A. Hedge funds are less regulated
B. Hedge funds are more risky
,C. Hedge funds are only available to qualified purchasers
D. Hedge funds are liquid - D. Hedge funds are liquid
All of the following statements are true regarding the trading of ADRs EXCEPT:
A. ADRs are traded on the New York Stock Exchange
B. ADRs are traded on the NASDAQ Stock Market
C. ADRs are traded on the American Stock Exchange
D. ADRs are traded on the Chicago Board Options Exchange - D. ADRs are traded on the Chicago Board
Options Exchange
ABC 8% $100 par preferred is trading at $105 in the market. The current yield is:
A. 6.6%
B. 7.6%
C. 8.6%
D. 10.6% - B. 7.6%
ANNUAL INCOME/MARKET PRICE
= CURRENT YIELD
$8/$105= 7.6%
,An ADR has been issued where each ADR equals 600 ordinary shares of the foreign issuer. If a client
wished to buy enough ADRs to cover 6,000 ordinary shares, how many ADRs must be purchased?
A. 1
B. 10
C. 100
D. 1,000 - B. 10
Since each ADR equals 600 ordinary shares, then 10 ADRs equals 6,000 ordinary shares.
Under IRS rules, if a customer selling shares of stock wishes to use specific identification instead of FIFO
for cost basis reporting, the broker-dealer effecting the trade must be notified of this no later than:
A. Trade date
B. Settlement date
C. December 31st of that year
D. April 15th of the following year - B. Settlement date
All of the following terms apply to mutual fund shares EXCEPT:
A. continuously issued
B. tradeable
C. Redeemable
D. non-negotiable - B. tradeable
Which of the following statements are TRUE about tax shelters that invest in raw land?
I. Raw land is depreciable
II. Raw land is not depreciable
, III. The main reason to invest in raw land is for the depletion deduction
IV. The main reason to invest in raw land is for the capital gains potential
A. I and III
B. I and IV
C. II and III
D. II and IV - D. II and IV
All of the following features are common to both preferred stock and bonds EXCEPT:
A. fixed rate
B. periodic payments
C. can be callable
D. fixed maturity date - D. fixed maturity date
Which statements are TRUE regarding Treasury debt instruments?
I. T-Notes are sold by competitive bidding at auction conducted by the Federal Reserve
II. T-Notes are sold by negotiated offering
III. T-Notes are issued in book entry form with no physical certificates issued
IV. T-Notes are issued in bearer form
A. I and III
B. I and IV
C. II and III
D. II and IV - A. I and III
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