Exam 34: Financial Structure

An investor has the right to transfer investment securities by sale, but not by gift or pledge.

In which of the following ways do debt and equity securities necessarily differ?

If Class A preferred shares provide only for a cumulative dividend of $3 per share, upon liquidation Class A Preferred will:

Harry bought preferred noncumulative stock on which there were no dividends declared for the year.The dividends that were not declared for the year will:

Walker recently purchased 1,000 shares of Heights Corp.stock, but now receives additional 100 shares of Heights stock, which represent a ratable distribution of additional shares by the corporation.Walker's receipt of additional shares is a:

State laws regulating the issuance and sale of corporate shares of stock and other securities, typically with provisions prohibiting fraud in the sale of securities are called:

If no exemption is available, a corporation offering shares of stock for sale is subject to court injunction and civil liability in damages to persons to whom securities are sold in violation of the regulatory statute, but there is no potential criminal liability.

Dividends paid in stock of the corporation have virtually the same legal significance as cash or property dividends.

A bondholder generally takes less of a risk than a shareholder of a corporation.

A shareholder of one-third of all the stock in a corporation would be entitled to one-third of all corporate assets of an ongoing company.

The Revised Act permits a corporation to purchase, redeem, or otherwise acquire its own shares unless:

Debentures are the same as indentures.

Which of the following determines when to declare dividends and in what amount?

Income bonds bear a fixed interest rate.

A shareholder's obligation to repay an illegally declared dividend depends on:

What do shares of equity securities confer on their owner in regard to interest in the corporation?

Which of the following is correct with regard to common stock?