Common stocks - Study guides, Class notes & Summaries

FINRA SIE EXAM 2024 WITH 100% ACCURATE SOLUTIONS If interest Rates fall the issuer will most likely call which bonds first? - correct answer High Dividend Rate preferred issues trading at a premium What are some actions by a corporation will affect an individuals common shareholder's equity - correct answer Conversion of convertible preferred stocks or bond Repurchase of common shares Issuance of additional common shares (Stock splits do not effect shareholders equity but it must b...

AAMS Practice Exam Combined Sets Questions & Revised Correct Answers BEST UPDATED!! If a client has a time horizon of one to five years, in general the most appropriate asset is A) money market mutual funds. B) short-term bonds. C) large-cap common stocks. D) foreign stocks. - ANSWER short-term bonds. B) Tammy invested $20,000 in a mutual fund 11 years ago. If she earns 10% compounded annually on this investment, what is the fund's value? A) $56,7...

Trading on the NYSE is executed without a specialist (i.e. a market maker). (T/F) - ANSWERSF Stocks and bonds are two types of financial instruments (T/F) - ANSWERSTrue The matching principle in accrual accounting requires that: a. Revenues be recognized when the earnings process is complete and matches expenses to revenues recognized. b. Expenses are matched to the year in which they are incurred c. Revenues are matched to the year in which they are booked d. Revenues should be large...

While it's invested, money grows by earning interest or yielding some other form of return. What is this known as? A) compound growth B) dividend C) capital gains D) security E) diversity correct answers compound growth The time it takes to double an investment can be estimated by using which of the following? A) book value B) the Rule of 72 C) blue-chips D) dividends E) market value correct answers the Rule of 72 Which of the following is the name for a portion of the ownership...

Which of the following portfolios has the least risk? A. A portfolio of Treasury bills B. A portfolio of long-term U.S. government bonds C. A portfolio of U.S. common stocks of small firms D. A portfolio of U.S. common stocks of large firms o :## A. a portfolio of treasury bills For long-term U.S. government bonds, which risk concerns investors the most? A. Interest rate risk B. 2 | P a g e : 2 0 2 4 / 2 0 2 5 G r a d e A + Master01: DO NOT COPY AND PASTE!! August 25, 2024 Latest Up...

Achievable SIE Exam Questions and Answers 100% Pass What is an issuer in the financial context? An issuer is an organization that raises funds by offering and selling securities to investors. What does the term security mean in finance? A security is an investment instrument, including equities, debt instruments, mutual funds, options, and exchange-traded funds (ETFs). How is equity defined in business? Equity represents ownership interest in a company. What are two ways ...

Statement of Cash Flows Shows the change in cash balance for a period of time. Focuses only on items where cash is received, or cash is paid. Cash Flow from Operating Activities (CFO) Cash flow that a company generates as a result of day-to-day business operations. Deals with Current Assets and Current Liabilities. 00:14 01:25 Cash Flow from Investing Activities (CFI) Cash flow that is generated from investments in long term assets. Cash Flow from Financing Acti...

KAPCO, Inc., has 100 million shares of $1 par common stock outstanding. If the current market price of the KAPCO common stock is $33 per share, KAPCO would be considered a A) small-cap stock. B) micro-cap stock. C) large-cap stock. D) mid-cap stock. correct answers D) By doing the arithmetic, we see that the market capitalization of KAPCO common stock is $3.3 billion. Stocks with a market cap in the range of $2 to $10 billion are considered mid cap. The issuance of new common stock wi...

Capital Markets Final Exam Questions & Answers 2023-24 Stocks are a(n) ________ investment representing ________ of a business. - ANSWER-Select one: a. direct; ownership Correct b. direct; debt c. indirect; ownership d. indirect; debt An exchange traded fund that invests in the stocks of large corporations is an example of - ANSWER-Select one: a. direct investment. b. indirect investment. Correct c. derivative investment. d. tangible investment. Which of the following has decl...

If interest Rates fall the issuer will most likely call which bonds first? - correct answer High Dividend Rate preferred issues trading at a premium What are some actions by a corporation will affect an individuals common shareholder's equity - correct answer Conversion of convertible preferred stocks or bond Repurchase of common shares Issuance of additional common shares (Stock splits do not effect shareholders equity but it must be voted on because it effects Par Value) Bene...