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Free SERIES 7 Exam Braindumps (page: 2)

Page 2 of 101
PDF with 400 Questions

A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of common stock. If it already has six million shares outstanding at the time of the offering.
What subscription ratio is the corporation establishing for each new share?

  1. 6 rights per share
  2. 10 rights per share
  3. 6 million rights per share
  4. 10 million rights per share

Answer(s): A

Explanation:

6 rights per share. Each share receives a right and there are six million shares receiving rights to one million new shares. So six rights are required for one share.



Bubba owns stock with cumulative voting rights. There are five vacancies on a board and he owns 100 shares of stock. Bubba is entitled to cast the following votes:

  1. a total of 100 votes
  2. a total of 100 votes per
  3. a total of 500 votes
  4. you are not allowed to vote

Answer(s): C

Explanation:

500 votes. Under cumulative voting, the number of directors is multiplied by the number of shares owned. The votes may be cast all for a single director or divided in any manner among the directors.



The definition of debentures is:

  1. a loan secured by real estate
  2. collateralized securities
  3. a worthless security
  4. securities backed by the general credit of the issuers but no specific collateral

Answer(s): D

Explanation:

securities backed by the general credit of the issuers but no specific collateral. And in the case of some issuers, that may be fairly worthless.



Convertible bonds have all of the following features except:

  1. an ability to protect a short position on the stock into which they are convertible
  2. permissibility for use as collateral
  3. a normally higher yield than non-convertible bonds of the same issuer
  4. fluctuations influenced by changes in the price of the underlying common stock

Answer(s): C

Explanation:

a normally higher yield than non-convertible bonds of the same issuer. Remember that the QUESTION: says “except” for this feature. Convertible bonds normally do NOT have a higher yield than non- convertible bonds of the same issuer. Convertibles usually have a lower yield than non -convertible sisters.



Page 2 of 101



Post your Comments and Discuss FINRA SERIES 7 exam with other Community members:

aparna commented on June 10, 2024
yes can please upload the exam?
Anonymous
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Karan Patel commented on August 15, 2023
yes, can you please upload the exam?
UNITED STATES
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Karan Patel commented on August 15, 2023
Yes, Can you please upload the exam?
UNITED STATES
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Victor Lin commented on November 13, 2016
Will take the exam shortly and will update the result here again. Hope this paper can help.
AUSTRALIA
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Vivek commented on July 18, 2016
Using it for the first time....will share post once done. Thanks for providing the same.
UNITED STATES
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Arihant commented on January 20, 2016
Will Give exam in next 2 weeks. Very happy to purchase from Braindumps. Thanks you very much.
UNITED STATES
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