FINRA SIE Exam Practice Test 8

1. Which of the following persons are considered corporate insiders?

2. Systematic risk is also known as ___________________.

3. What type of risk involves the chance that Congress will make unfavorable changes in tax laws?

4. Which of the following terms is a maneuver used by a company that increases the number of shares outstanding by exchanging a specified number of new shares of stock for each outstanding share?

5. Investing a fixed dollar amount in a security at fixed intervals is known as ____________.

6. What is the name of the strategy where a company reduces the number of shares outstanding by exchanging a fractional amount of a new share for each outstanding share of stock?

7. If a company declares a 1:2 reverse stock split, how many shares will an investor with 200 shares own after the split?

8. ___________ is an intangible asset that is the result of the acquisition of one company by another for a premium value.

9. Which of the following characteristics are true of preferred stocks?

I. Have a prior claim on the income and assets of the issuing firm

II. Have fixed dividends

III. Issued as an alternative to debt

IV. Have an effect on EPS

10. Dollar-denominated negotiable receipts for company stock of a foreign company held in trust in a foreign branch of a U.S. bank are __________________.

11. Assuming rational market behavior, what should the opening price of ABC Corporation be on December 6?

On Monday, December 5, after trading for that day ceased, ABC Corporation declared that it would pay an unanticipated $0.25 dividend, payable on December 15. The December 5 closing price of ABC Corporation stock is $25.34

12. An investor who owns 200 shares of XYZ Company, which is currently trading at $25.00, will be receiving a 20 percent stock dividend. What will the investor receive on the payment date?

13. How long must you hold an investment for it to be considered long term?

14. What represents the amount of stockholders' capital in a firm?

15. Which financial statement provides a summary of the firm's cash flow and other events that caused changes in the cash position?

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