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SIE Chapter 1
  • Alex Lazaro

  • 問題数 28 • 10/30/2023

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    問題一覧

  • 1

    The possibility always exists that a particular company may not be profitable. This is best characterized as:

    Business risk

  • 2

    The shares of authorized stock that are sold to the public are known as:

    Issued stock

  • 3

    What must be done with open limit orders at theclose of business on the day before the ex-date of a reverse stock split?

    They must be cancelled

  • 4

    An investor buys equity securities that convey the right to purchase shares of a company's common stock at a fixed price. These securities are called:

    Warrants

  • 5

    What date occurs one business day after the ex-dividend date?

    The record date

  • 6

    Which of the following best characterizes a defensive stock?

    It will be largely unaffected by changes in economic activity.

  • 7

    A proven way to reduce non-systematic risk in equity portfolio is to:

    Diversify among different stocks

  • 8

    Brunswick issues a Series A $2.40 cumulative convertible preferred voting stock. This stock: (1)- Is convertible into common stock (2)- Pays dividends in arrears (3)- Receives excess dividends on a pro rata basis with common stock

    (1) and (2) Only

  • 9

    Which of the following is an inaccurate statement regarding preferred stock?

    Bondholders are usually lower in priority than these shareholders with respect to creditor claims

  • 10

    As a common stockholder, an investor has an opportunity to cast a vote which means they can indicate a preference for:

    The people who will sit On The Corporation's board

  • 11

    An effective technique for losing the systematic risk of an equity portfolio is to:

    Protect the portfolio by using hedging strategies

  • 12

    A security that can be freely transferred, assigned or delivered to another entity is called:

    Negotiable

  • 13

    The stock of an issuer that reinvests most of its earnings back into the business is most likely classified as an:

    Growth stock

  • 14

    In which type of transaction does the confirmation and settlement occur on the trade date?

    Cash

  • 15

    The process of shareholders assigning voting rights to a third party is

    Voting by proxy

  • 16

    What usually happens to the price of a stock at the opening of trading on the ex-dividend date?

    The price declines by the amount of the dividend

  • 17

    Which of the following is inaccurate statement regarding preferred stock?

    Bondholders are usually lower in priority than these shareholders with respect to creditor claim.

  • 18

    ABC corporation will elect 2 members of the board of director at its annual meeting. A shareholder that owns 200 shares of stock may: (1)- Vote 200 shares of stock for each director under statutory voting (2)- Vote100 shares of stock for each director under statutory voting (3)- Split a total of 200 for any way between the two directors under cumulative voting (4)- Split a total of 400 for any way, between the two directors under cumulative voting

    (1) and (4)

  • 19

    An investor has 100 shares of XYZ stock at $90 per share. After a 3 for 1 split, The investor can expect to own

    300 shares at $30 per share

  • 20

    The shares of authorized stock that are sold to the policy are known as

    Issued stock

  • 21

    Systematic risk can often be attributed to all of the following factors except

    Changes in corporate management

  • 22

    ABC corporation is planning to do $50,000,000 debenture Offering in the next few months and hopes to make the offering as attractive as possible to investors. To achieve this goal, ABC corporation would most likely

    Include a detachable warrant as a sweetheart with the bond offerings

  • 23

    Dividends are typically paid.

    Quarterly

  • 24

    Pre-emptive rights are available to current shareholders of company as of means of

    Avoiding dilution.

  • 25

    Nigel Bones stock certificates that he inherited from his grandfather. How can he continue to hold the stock without having responsibility for lost or damaged certificates?

    Endorse the Certificates to a brokerage firm

  • 26

    The par value off prefer stock is important to know as

    Dividends are typically paid as a percentage of par value.

  • 27

    Preferred stock has a lower potential for appreciation and capital gains than common stock issued by the same company because

    Prefered stock pay a fixed dividend.

  • 28

    When a company engages in a stock split, the result is

    Change in the number of shares outstanding and share price, but no true valuation change to the investor.