QUESTION: 137

A treasury employee of Company XYZ is privy to financial reporting information yet to be released to the public. He knows that year-end earnings exceed last year’s and would be viewed as positive to the investment community. He casually mentions to a relative that now would be a good time to buy the stock of Company XYZ. Which section of the treasury code of ethics would typically be violated by such a disclosure?

Employee conduct
External activities
Conflict of interest
Confidential information

Answer(s): D

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QUESTION: 138

A company is concerned that investor dissatisfaction could lead to a rapid change in its board membership. To prevent this, which of the following strategies should the company employ?

Grant shareowners preemptive rights for new shares.
Give shareowners cumulative voting rights.
Stagger the election of its directors.
Allow shareowners to vote by proxy.

Answer(s): C

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QUESTION: 139

A publicly traded company is looking to fund its next project with the issuance of stock. The company’s stock is primarily held by a small group of investors. The company is concerned that issuing stock may upset these investors because it would dilute their holdings. Which of the following strategies would help address the investors’ concern?

Grant the investors cumulative voting rights.
Grant the investors pre-emptive rights to the new issue.
Allow the investors to cast their votes by proxy at the next shareowners meeting.
Offer to stagger the election of directors.

Answer(s): B

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QUESTION: 140

The goal of investor relations is to:

ensure that a company’s securities achieve a fair valuation in the marketplace.
ensure equity analysts have all available company information at any point in time.
maintain the company’s stock listing on the NYSE.
make sure all shareholders cast a vote at the annual meeting.

Answer(s): A

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QUESTION: 137

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QUESTION: 139

QUESTION: 140