____% preferred correct answers annual dividend / par value
Primary objective of preferred stock correct answers income
Cumulative preferred stock is best for who? correct answers Those seeking income
paid for missed dividends
What type of preferred stock pays the highest rate? correct an...
Series 65 Questions || with 100% Correct Answers.
____% preferred correct answers annual dividend / par value
Primary objective of preferred stock correct answers income
Cumulative preferred stock is best for who? correct answers Those seeking income
paid for missed dividends
What type of preferred stock pays the highest rate? correct answers callable
company can buy back
What type of preferred stock has the lowest rate? correct answers Convertable
can trade for number of common stock
price fluctuates with common stock
What type of preferred stock is the worst for those seeking income? correct answers Adjustable
rate
tied to a benchmark rate
What are the two types of ADRs? correct answers Emerging and developed
Where is the custodian bank located when referring to an ADR? correct answers in the issuers
country
When referring to an ADR, who(m) is the registered owner? correct answers US bank
What are some pros to investing in REITs? (Real estate investment trusts) correct answers
opportunity to invest in real estate
REITS move opposite stock market (diversification)
income/capital appreciation
What are some cons to investing in REITS? (real estate investment trusts) correct answers
investor has no control
loans can be risky
dividends are taxed as full ordinary income
Do REITs (real estate investment trusts) have direct participation? correct answers No
losses do not pass through
What is a preemptive right? correct answers when company issues more stock, you are given the
option to buy more to maintain your same ownership %
only app.lies to common stock
What is a rights offering? correct answers the opportunity to purchase common stock below the
market price
, options: exercise right, sell right, allow right to expire
What is a warrant? correct answers The right to purchase at a certain price (usually above today's
market price) at a future point in time
long term instrument
usually used as a sweetener
Nonqualified stock option correct answers current market price - strike price = employee wage
taxed as income for employee, tax deduction for company
Incentive stock option correct answers can count as long term gains
must be held for 2 years after granting of option
must be held for 1 year after exercise date
What is the importance of par value in relation to common stock, preferred stock and bonds?
correct answers common stock - doesn't matter
preferred stock - basis of dividend
bond - basis of interest payment and the amount to be repayed
Mortgage bond correct answers backed by real estate
market value ALWAYS less than principal
Equipment trust certificates correct answers trust holds ownership
market value NEVER less than principal
collateral trust bond correct answers back by securities
security rating and bond rating rise together
debenture correct answers backed by credit worthiness
What type of bond is paid out last? correct answers debenture
guaranteed bonds correct answers different entity backs debt, often by parent company
Rank claims on a company in order of most senior to subordinated correct answers wages
taxes
secured bonds
unsecured
preferred stock
common stock
Rank claims as most senior to least (stockholder, creditor, debenture) correct answers creditor
debenture
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