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
