Exam 2: Investment and Securities

Bubba Corporation has net income of $4,200,000. It has 100,000 outstanding shares of 8% preferred stock ($100 par value) and 400,000 shares of common stock ($10 par value). What are the earnings per share of common stock?

(Multiple Choice)

4.9/5

(83)

Question 61

Which of the following have a stated interest rate on the face of the certificates?

(Multiple Choice)

4.8/5

(81)

Question 62

Which of the following does not affect the public offering price of a new issue?

(Multiple Choice)

4.8/5

(85)

Question 63

Bubba buys one XYZ October 80 put and sells one XYZ October 70 put. What is his position called?

(Multiple Choice)

4.8/5

(90)

Question 64

Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at 47.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the preferred stock is:

(Multiple Choice)

4.8/5

(64)

Question 65

The maximum contribution an employer may make to a SEP-IRA is:

(Multiple Choice)

4.7/5

(68)

Question 66

Which of the following statements is pertinent to closed-end investment companies?

(Multiple Choice)

4.8/5

(85)

Question 67

A mutual fund custodian is paid according to which of the following specifications when receiving deposits from a shareholder's reinvestment plan?

(Multiple Choice)

4.8/5

(79)

Question 68

Which of the following is not usually an additional function of a mutual fund's custodial bank?

(Multiple Choice)

4.8/5

(78)

Question 69

An employer profit sharing plan may be described as:

(Multiple Choice)

4.9/5

(79)

Question 70

Bubba buys a US treasury bond. The interest he earns is:

(Multiple Choice)

4.8/5

(82)

Question 71

If federal excise taxes were increased by the government, what would the typical investor do about his securities portfolio?

(Multiple Choice)

4.9/5

(77)

Question 72

A limit order is best describes as an order:

(Multiple Choice)

4.9/5

(94)

Question 73

Bubba entered an order to sell long 100 shares of XYZ at 38.75 stop limit. Thereafter, the following round-lot transactions occurred: 38.75, 38.65, 38.50. At what price was Bubba's order executed?

(Multiple Choice)

4.9/5

(68)

Question 74

When the market value in a long margin account decreases, the SMA will:

(Multiple Choice)

4.9/5

(69)

Question 75

Which of the following is an analyst most likely to classify as a defensive issue?

(Multiple Choice)

4.7/5

(76)

Question 76

Bubba buys a bond issued at par with a 5% coupon that is convertible into common stock at $40. The bond increases in value by 20 points. What is the conversion parity of the stock?

(Multiple Choice)

4.9/5

(86)

Question 77

Which of the following sets of prices is that of a closed-end investment company?

(Multiple Choice)

4.8/5

(81)

Question 78

Reinvestment of dividends and distributions from investment company shares:

(Multiple Choice)

4.9/5

(71)

Question 79

Bubba buys one XYZ September 50 call at $7 and sells one XYZ September 60 call at $3. At that time, XYZ stock is at $55. Bubba has no other stock positions. At what must XYZ trade for Bubba to break even?

(Multiple Choice)

4.9/5

(86)

Question 80

Showing 61 - 80 of 391

Bubba Corporation has net income of $4,200,000. It has 100,000 outstanding shares of 8% preferred stock ($100 par value) and 400,000 shares of common stock ($10 par value). What are the earnings per share of common stock?

Which of the following have a stated interest rate on the face of the certificates?

Which of the following does not affect the public offering price of a new issue?

Bubba buys one XYZ October 80 put and sells one XYZ October 70 put. What is his position called?

Bubba buys a $4 convertible preferred with a $50 par value that is exchangeable for common stock at 47.50. If the preferred stock is trading at 52 and the common stock at 51, Bubba determines that the preferred stock is:

The maximum contribution an employer may make to a SEP-IRA is:

Which of the following statements is pertinent to closed-end investment companies?

A mutual fund custodian is paid according to which of the following specifications when receiving deposits from a shareholder's reinvestment plan?

Which of the following is not usually an additional function of a mutual fund's custodial bank?

An employer profit sharing plan may be described as:

Bubba buys a US treasury bond. The interest he earns is:

If federal excise taxes were increased by the government, what would the typical investor do about his securities portfolio?

A limit order is best describes as an order:

Bubba entered an order to sell long 100 shares of XYZ at 38.75 stop limit. Thereafter, the following round-lot transactions occurred: 38.75, 38.65, 38.50. At what price was Bubba's order executed?

When the market value in a long margin account decreases, the SMA will:

Which of the following is an analyst most likely to classify as a defensive issue?

Bubba buys a bond issued at par with a 5% coupon that is convertible into common stock at $40. The bond increases in value by 20 points. What is the conversion parity of the stock?

Which of the following sets of prices is that of a closed-end investment company?

Reinvestment of dividends and distributions from investment company shares:

Bubba buys one XYZ September 50 call at $7 and sells one XYZ September 60 call at $3. At that time, XYZ stock is at $55. Bubba has no other stock positions. At what must XYZ trade for Bubba to break even?

Investment and Bond Market

Assorted Securities and Investments

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