FINRA-General Securities Representative Qualification Examination Set 1

a lower dividend rate than non-convertible preferred ✘ a dilution of earnings if converted into common stock ✘ a requirement for shareholders to always accept the call price when called ✘ required dividend payments to shareholders before any dividends are paid to holders of common stock ✔

5 ✘ 98.96 ✘ 100 ✘ 105.1 ✔

face value ✘ book value ✘ market value ✘ whatever value the broker says ✔

the right to have the stock price increase ✘ the right to vote about important matters of the company ✘ the right to dividends ✘ both B and C ✔

the owners of debentures ✘ the holders of common stock ✘ the holders of common stock and the holders of preferred stock ✘ the government ✔

it has voting rights ✘ it is entitled to receive dividends ✘ it is stock that has not been issued ✘ it is stock that has been reacquired by the issuer ✔

they are readily marketable ✘ they have a fixed rate of return ✘ they have a fixed maturity date ✘ they are not secured by collateral ✔

puts ✘ calls ✘ warrants ✘ rights ✔

with stock in a subsidiary company ✘ with property ✘ with cash ✘ all of the above ✔

after the company pays its outstanding bills, but before paying bank loans ✘ after the bills are paid and the bank is paid, but before the preferred shareholders ✘ before the holders of secured debt ✘ after the shareholders of preferred stock ✔