Question

QUESTION 66

1. Kawabunga Surfboard and Ironing Board Corp. would need shareholder approval to

   I. give its shareholders a cash dividend

   II. give its shareholders a stock dividend

   III. split its stock

   IV. reverse split its stock

   		III and IV
   		II, III, and IV
   		I and II
   		II and III

1 points   

QUESTION 67

1. Money market instruments are

   		preferred stock
   		short-term debt
   		long-term debt
   		common stock

1 points   

QUESTION 68

1. Which of the following IS NOT a bearish strategy?

   		Buying put options
   		Buying inverse ETFs
   		Selling naked put options
   		Selling short

QUESTION 71

1. Which of the following would be owners of a corporation?

   I. Common stockholders

   II. Debenture holders

   III. Participation preferred stockholders

   IV. Equipment trust bondholders

   		I, III, and IV
   		II, III, and IV
   		II and IV
   		I and III

1 points   

QUESTION 72

1. A REIT must distribute at least _______ of its income to shareholders in order to avoid being taxed as a corporation.

   		90 percent
   		75 percent
   		25 percent
   		95 percent

1 points   

QUESTION 73

1. An Official Notice of Sale contains all of the following EXCEPT

   		interest payment dates
   		the name of the bond counsel
   		the bond rating
   		method and place of settlement

1 points   

QUESTION 74

1. Which of the following options positions has the holder or writer of an option facing a maximum loss potential that is unlimited?

   		Persons long a call option
   		Persons short an uncovered call option
   		Persons short an uncovered put option
   		Persons long a put option

1 points   

QUESTION 75

1. All of the following are considered violations EXCEPT

   		signatures of convenience
   		interpositioning
   		frontrunning
   		hypothecation

Answer 1

Answer 66) the correct option is 1 and 2. The final dividend should be approved at annual general meeting.

Answer 67) money market instruments are short term debt, there tenure is upto 1 year. Answer option b

Answer 68) selling naked put option is not bearish. As seller will lose money if put is exercised.

Answer 71) The owner of the corporation are the common stockholders and participation preferred stockholders.

Answer 72) A REIT should distribute atleast 90% of the income in order to avoid being taxed.

Answer 73) an official sale notice doesn't contain name of the bond counsel.

Answer 74) a person who ahorts uncovered call option has unlimited liability because stock price can shoot up causing unlimited loss.

Answer 75) hypothecation is not considered as violation. This is process where debtor pledges a collateral for his debt.