Random #2 Flashcards
What is the mode?
The number that appears the most
Name of a beneficiary in a life estate who will inherit property after the life tenant’s death:
Remainderman
Who receives top priority during liquidation proceedings?
Secured claims (1st lien)- second lien is next
Which shareholders are paid off first in a liquidation?
Preferred equity or stock shareholders
In what order are creditors paid?
Secured, Priority, General, Shareholders (preferred then equity)
Is selling to an institutional investor an exempt transaction or non-exempt?
Exempt (financial institutions, fiduciaries, and insurance underwriters are exempt)
Are unsolicited orders exempt or non-exempt
Exempt
A non-executive employee wanted to sell back some of the company’s common shares he or she purchased as part of an employee stock purchase plan. Is this exempt or non-exempt?
Exempt
Are securities are not offered to the public, but are instead sold privately to an accredited investor exempt or non-exempt?
Exempt
What is the net worth required for an individual to be an accredited investor?
1 million excluding their home
What is the income level required to be considered an accredited investor?
200k the past two years or 300k joint
What is the $ limit a small business can offer to raise money and remain exempt?
5M over 12 month period
What payout option on a non-qualified annuity assures the largest monthly payment?
Straight life (the life of the annuitant only)-pays a guaranteed stream of income but ceases payments upon the death of the annuitant. Straight life annuities do not include a death benefit, so payments can’t be made to a beneficiary.
An investor should go defensive at which point in the business cycle?
The peak phase; Cyclical stock are popular and richly valued so defensive stocks will be cheaper
When risk premium widens, what is that indicative of?
Investors are risk adverse
Stockholder’s equity is defined as?
Net worth and assets minus liabilities
