Test 8 Flashcards
What situation is call protection most valuable?
When bond prices are rising
Which of the following securities are used by importers and exporters to finance foreign trade?
Bankers acceptances
Money received by a corporation when it sells its stock above par value is called:
Paid-in capital
In order to qualify for a registration exemption under rule 147, what percentage of a corporations assets must be located in a certain state, and what percentage of its revenues must be derived from that states sources?
80%
A security with a low beta:
Underperforms the market when it’s gaining and outperforms the market when it’s losing
A company has been struggling and has failed to make the most recent interest payments on the bond that it has issued. This issuers bond holders have experienced:
Credit risk
For variable annuities, which of the following payout options provide the highest payout?
Life annuity
The 5% markup policy applies to:
Nonexempt securities
What guarantees that holders that their proportionate ownership will not be diluted if additional shares are issued?
Preemptive rights
How can an option writer cover an existing position?
Execute a closing purchase
What limited partnership is the least likely to generate income?
Raw land limited partnership
An increase in ______ will likely result in the Federal Reserve Board implementing an easy money policy?
Unemployment
A RR is not permitted to exercise discretion as it relates to what investment?
DPPs
Regular way settlement on treasury bonds is:
Next business day
Which investments are generally traded according to their average life rather than their stated maturity dates?
Asset backed securities
