All of the following are possible actions of an investor who has received stock rights EXCEPT

which of the following  securities receives no div. and has no voting rights? 

Treasury Stock ADRs Preferred Stock Common Stock

who are the rights delivered to ?

Rights are delivered to the "agents" listed on the offering sheet 

Outstanding Stock Formula 

Issued - Treasury = Outstanding Stock 

Minority shareholders have a better chance of electing a director of their choice 

which of the following companies is most likely to pay stock dividend?

A company with a small cash balance and earnings growing at 20% per yr
a company w/ a small cash balance would be most likely to pay a stock dividend.

what best provides investment income and appreciation?

A REIT provides income via div. and offers the potential for capital appreciation
growth stock provide capital appreciation but generally pay little to no dividends
a warrant doesn't pay dividends
a utility stock is appealing bc its reliable and often large div. but doesn't offer as much capital appreciation potential as a REIT

cash dividends paid to investors 

All of the following are rights of a common stockholder EXCEPT for the right to 

receive fixed cash dividends 

Common Stockholders have the right to 

receive dividends once the BOD declares a div.
Vote on important matters such as BOD
Inspect certain corporate books and records receive a stock certificate

when a corporation is planning to distribute new shares of common stock to its existing shareholders 

Common stockholders have all of the following right EXCEPT 

Vote for senior management of the company

All of the following are defensive stocks EXCEPT

Which of the following is true regarding stock split?

The stockholders percentage ownership remains unchanged 

when a common stock's price tends to rise quickly when the economy is strong and fall quickly when the economy is weak 

A single 25 yr old investment banker has income of 300K and a net worth in excess of a million dollars. her investment obj. is capital appreciation. all of the following would appropriate for this investor except 

High yield preferred stocks. since her objective is capital appreciation, the high yield preferred stock would be the least appropriate since preferred stocks are generally less volatile than common stocks .

A corporate stockholder has a "residual claim" this refers to the stockholders right to 

corporate assets remaining at dissolution after satisfaction of senior obligations 

with regard to common stock prior stockholders vote is req for which of the following 

calculate div payout ratio: total cash div paid to common shareholders: $10,000,000
total outstanding common share: $5,000,000 EPS: $5.00

1st: Div paid to CS/Outstanding CS = Dividend per share  now you take DIV. per share/EPS = DIV PAYOUT RATIO
10,000,000/5,000,000 = $2.00 $2.00 / $5.00 = .40 OR 40% 

An investor buys 100 shares of ABC common stock at $85.50 per share. the stock pays a quarterly dividend of $1. if the common stock is currently trading at $95.50 per share what is the current annual dividend yield

($1 X 4) = $4
Annual DIV/CMP
$4 / $95.50 = 4.19%

what gives the B/D the right to vote on his clients behalf 

which of the following is NOT a benefit of owning preferred stock rather than common stock 

Preferred shareholders have preemptive rights ahead of common shareholders

preemptive rights are given to common shareholders only not preferred stockholders

preferred stock carries which of the following traits?

Dividends on preferred stock are typically paid on a qtrly basis
preferred stockholders have a priority claim on assets of a company upon dissolution over common shareholders

current stock price: $55
Qtrly div. $1.30
what is the yield

Annual Div. / MKT PX
$1.30 X 4 = 5.20
$5.20 / $55 = 9.5%

which of the following securities could pay a dividend in cash or in other securities 

Common Stockholders Mutual Funds Muni Bonds Corp Bonds

when a company does a rights offering,

only given to existing shareholders, proportionately to shares held
rights are a short term privilege 

which of the following statement concerning REITs are correct 

they must be registered with the SEC before a public sale
they are not considered tax shelter investments bc operating losses do not pass through to the owners of the REIT

preemptive rights clause in a corporate charter includes all of the following characteristics 

allows the existing shareholders first right of refusal on the newly issued shares
protects the existing shareholders from dilution of shares
Allows the existing shareholders control over newly issued shares
EXCEPT
requires the corporation to repurchase shares from existing shareholders at predetermined intervals

which of the following are true concerning treasury stock 

doesn't vote  doesn't receive div. appears on the balance sheet as a deduction from issued stock

an "owner" of a corporation would include:

common stock holders preferred stock holders

when interest rates change which of the following securities would have the greatest reaction 

Preferred Stock
Remember: Interest rates affect fixed income securities directly bc of the inverse relationship that price has to interest rate fluctuation

an investor that has received rights through preemptive rights offering could do all of the following EXCEPT

Redeem the rights for their cash value 

an organization that owns and operates income producing property like shopping centers and apartment buildings and distributes most of its taxable income to its shareholders 

which of the following types of industries would be affected most by changes in interest rates 

Utilities
bc they are very highly leveraged

which of the following is probably a growth stock

Growth companies have high retained earnings and low dividends 

which of the following features on preferred stock allows investors to receive unpaid dividends prior to the payment of dividends to common stock shareholders 

which of the following securities have over time best kept of with inflation 

on the ex date for 20% stock div. a customer with a short position of 300 shares of common stock would 

Owe an additional 60 shares of common stock

300 shares X .20 = 60 shares

What are stock rights?

What Are Stock Rights? Stock rights are instruments issued by companies to provide current shareholders with the opportunity to preserve their fraction of corporate ownership.

What type of stock has voting rights quizlet?

Terms in this set (3) Common stock is an ownership share in a publicly held corporation. Common shareholders have voting rights and may receive dividends.

Which of the following is true for mutual funds and those who invest in them?

Which of the following is TRUE for mutual funds and those who invest in them? Investors must be provided with specific information when purchasing mutual funds. Under the Uniform Securities Act, registrations must be renewed how frequently?

Which of the following is true regarding a registered person who wishes to move her registration from one broker/dealer to another quizlet?

Terms in this set (12) Which of the following is true regarding a registered person who wishes to move her registration from one broker-dealer to another? In no circumstances can a registration be transferred from one firm to another.