Free SERIES 7 Exam Braindumps (page: 5)

Page 5 of 101

Which of the following is true of treasury stock?

  1. it has voting rights
  2. it is entitled to receive dividends
  3. it is stock that has not been issued
  4. it is stock that has been reacquired by the issuer

Answer(s): D

Explanation:

it is stock that has been reacquired by the issuer. Treasury stock has no voting rights and is not entitled to receive dividends. The shares have been issued but are no longer outstanding in the market.



Bubba decides to buy equity securities. Which of the following statements is always true about what Bubba is buying?

  1. they are readily marketable
  2. they have a fixed rate of return
  3. they have a fixed maturity date
  4. they are not secured by collateral

Answer(s): D

Explanation:

they are not secured by collateral. Equity is ownership, which has no collateral security…or any other kind of security such as a guaranteed return, maturity, or marketability.



Which of the following securities provides the longest term of option privilege?

  1. puts
  2. calls
  3. warrants
  4. rights

Answer(s): C

Explanation:

warrants. All of the others always have fixed maturity dates. Warrants often have no finite life and, if they do, it is a very long time.



A company may pay a declared dividend in which of the following ways:

  1. with stock in a subsidiary company
  2. with property
  3. with cash
  4. all of the above

Answer(s): D

Explanation:

all of the above. Dividends can be paid in all of these ways. They can also be paid with treasury stock or authorized but unissued stock.



Page 5 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
upvote

Karan Patel commented on August 15, 2023
yes, can you please upload the exam?
UNITED STATES
upvote

Karan Patel commented on August 15, 2023
Yes, Can you please upload the exam?
UNITED STATES
upvote

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
upvote

Vivek commented on July 18, 2016
Using it for the first time....will share post once done. Thanks for providing the same.
UNITED STATES
upvote

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
upvote