Q:

Which statements about common shareholder rights are FALSE?
I. A shareholder may exchange shares to convertible bonds at his option.
II. A shareholder’s right to a dividend precedes a bondholder’s right to a coupon payment.
III. A shareholder may inspect a company’s books.
IV. A shareholder may transfer ownership to minor children.
A) I, II and IV
B) II and III
C) II, III and IV
D) I, II, III and IV

A:

The correct answer is a.
I should be the the other way around: convertible bond holders can exchange their bonds for shares.
II is incorrect because bondholders precede shareholders.
IV. is incorrect because Shareholders have the right of transfer, but minor children cannot hold securities.


MORE FAQS

  1. Which TWO statements are TRUE about writing covered calls? I ...

  2. Which of the following statements is (are) true with respect to the calculation of returns of composites ...

  3. A margin account has a long market value of $12,000, a debit balance of -$6,000 ...

  4. Which of the following statements is (are) true with respect to setting the proper constraints in managing ...

  5. Which of the following statements is (are) true with respect to the factors that a manager must take ...

  6. Which of the following are not types of open-end management investment companies ...

  7. Which of the following signatures are required on a client’s new account form ...

  8. Which of the following are tools that are employed by the Federal Reserve in its efforts to control the money supply?

  9. Under the Telephone Consumer Act of 1991, a telemarketer must provide which of the following to a called ...

  10. Under the Uniform Securities Act, which of the following are defined as securities ...

  11. Which of the following deliveries for a 600 share order, broker-dealer to broker-dealer ...

  12. Which statement(s) is/are FALSE about market risk?

  13. Under the Uniform Securities Act, registration with the Administrator as an investment adviser is required ...

  14. Zero coupon bonds are frequently cited as a popular investment vehicle for education savings ...

  15. Federal covered securities are subject to which of the following requirements ...

  16. How many attempts at each CFA exam is a candidate permitted?

  17. What's the average salary of a financial advisor?

  18. Why is Hong Kong considered a tax haven?

  19. Is smart beta cheaper than hedge funds?

RELATED FAQS

  1. Which TWO statements are TRUE about writing covered calls? I ...

    The correct answer is c) I is incorrect because there is no margin requirement. III is incorrect because a call writer must ...
  2. Which of the following statements is (are) true with respect to the calculation ...

    The correct answer is: a) (I) is incorrect because results that cover a period of less than a year must "not" be annualized. ...
  3. A margin account has a long market value of $12,000, a debit balance of -$6,000 ...

    The correct answer is a. I is correct since the stock's currently valued at $12,000 are increasing 20% or $2,400. II is incorrect ...
  4. Which of the following statements is (are) true with respect to setting the proper ...

    The correct answer is: d) Choice II is incorrect because the longer the investment horizon, the less emphasis must be placed ...
  5. Which of the following statements is (are) true with respect to the factors that ...

    The correct answer is: d) (I) is incorrect because if interest rates are expected to rise, banks will generally "increase" ...
  6. Which of the following are not types of open-end management investment companies ...

    The correct answer is d) Hedge funds are extremely aggressive entities that engage in margin and short-selling.  They are ...
RELATED TERMS
  1. Shareholders' Agreement

    An arrangement among a company's shareholders describing how ...
  2. Shareholder

    Any person, company or other institution that owns at least one ...
  3. Common Shareholder

    An individual, business or institution that holds common shares ...
  4. Working Control

    When a minority shareholder (or shareholders) has enough voting ...
  5. Bondholder

    The owner of a government or corporate bond. Being a bondholder ...
  6. Convertibles

    Securities, usually bonds or preferred shares, that can be converted ...
Hot Definitions
  1. Cover Letter

    A written document submitted with a job application explaining the applicant's credentials and interest in the open position. ...
  2. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  3. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  4. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  5. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  6. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
Trading Center