Ch. 1 Industry Terminology and Data Collection Flashcards
T/F: A partnership can own shares of a Subchapter S Corporation?
False
Are distributions from a Subchapter S Corporation a taxable or non-taxable return of capital?
Non-taxable
Will the sale of Subchapter S Corporation shares result in taxable or non-taxable capital gains or losses?
Taxable
For a Subchapter S Corporation, is a married couple considered one or two shareholders?
One shareholder
How many shareholders is a Subchapter S Corporation limited to?
100 shareholders
Can a Subchapter S Corporation list on an exchange?
No
Can an LLP, MLP, LLC and C Corporation have a unlimited number of shareholders and trade on an exchange?
Yes
What % of REIT’s income is passed through?
90%
Can REITs pass through losses?
No
A large accelerated filer has a public float of ____ or more
$700 million
An accelerated filer has a public float of at least ____ million
$75 million but less than $700 million
A non-accelerated filers has a public float of less than _____ million
Less than $75 million
For a 10-k, BS info must be for the previous ___ years and income / cash flow statements must be for the previous ____ years
BS- latest 2 fiscal years
IS / CF- latest 3 fiscal years
Is a form 10-Q audited?
No, generally unaudited
What is filed by any person that acquires more than 5% of an issuer’s equity?
Schedule 13D
If (3) different investors who each own 3% of a company’s equity, must they file a Schedule 13D?
Yes
How many days must the annual proxy be sent to shareholders before the meeting date?
20 days
Does the proxy include the voting records of board members, minutes from board meetings, or the results of previous votes?
No
What would be reviewed to determine an issuer’s largest shareholders?
13D, 13G, 10K, or Proxy
SARBOX indicates what (2) business leaders must certify the annual financial reports
CEO + CFO
What is the first step if an outside auditor (accountant) determines that an illegal act may have
occurred
It should first be reported to the audit committee of the board of directors
A board director who attended less than 75% of the board meetings is reported on the _____
Annual proxy
Do the members of the audit committee have to be independent directors?
Yes
What type of strategy is used to purchase an undervalued stock that has good growth potential?
Growth at Reasonable Prices (GARP) strategy
