Mr. Investor has purchased 100 shares of the common stock of the Everyman Corporation. As such, which of the following is not a right that Mr. Investor has?
Answer(s): D
Mr. Investor does not have the right to vote on the purchase of a major piece of property that Everyman is considering or any decision involving business operations. He does have the right to receive dividends, if dividends are declared, based on his proportionate ownership of the firm. He also has the right to vote on the members of the firm's board of directors and to vote on any proposed changes to the corporate by laws.
Anna Lyst observes that the beta of a certain stock is 0.8. This means that:
Answer(s): A
If the beta of a stock is 0.8, it means that if the S&P 500 Index loses 10%, this stock can be expected to lose 8%. Beta is a measure of how a stock or a portfolio of stocks moves with the overall market, and the S&P 500 Index is commonly used as a proxy for the overall market. A beta of 0.8 means that the stock is less risky than the market, which has a beta of 1.0.
After a registration statement has been filed with the SEC, no offers to sell the security to the public can be made for:
After a registration statement has been filed with the SEC, no offers to sell the security to the public can be made for minimum of 20 days unless the SEC grants an exception and declares the registration statement effective sooner. The security cannot be offered for sale until the SEC has declared the registration statement effective, and should the SEC find that it requires more information from the issuer, it may be take longer than 20 days for it to declare the statement effective.
A broker-dealer is required to file a Currency Transaction Report with the Treasury Department for:
Answer(s): B
A broker dealer is required to file a Currency Transaction Report with the Treasury Department for any cash transaction exceeding $10,000. The report does not need to be filed if the transaction simply has a market value of $10,000, but does not involve cash (aka, currency.)
Annie Vestor owns shares of the URMoney Mutual Fund. Annie lives on the west coast in Seattle, Washington. URMoney reported a net asset value per share of $10.10 on October 9th. On October 10th, its reported net asset value per share was $10.20. Upon arriving home at 12 P.M. (her time) on October 9th, Annie logged into the URMoney website and entered an order to redeem 500 shares of her holdings in the fund. This order will be transacted at:
Answer(s): C
If Annie, who lives on the west coast, enters an order to redeem 500 shares at 12 P.M. her time on October 9th, the order will be executed at the net asset value calculated at the end of that trading day, which is $10.10. Orders received prior to 4 P.M. Eastern Standard Time (EST) are required to be processed at the net asset value of the fund determined at the end of that some trading day, and 12 P.M. in Seattle is 3 P.M. on the east coast.
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