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

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

  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. Human capital vs. physical capital: What is the difference?

  17. Can moving to a higher tax bracket cause me to have a lower net income?

  18. How did the financial crisis affect the banking sector?

  19. Do beneficiaries pay taxes on life insurance?

  20. How do I become a Chartered Financial Analyst (CFA)?

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. Bondholder

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

    Securities, usually bonds or preferred shares, that can be converted ...
  6. Shareholder

    Any person, company or other institution that owns at least one ...
Hot Definitions
  1. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  2. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  3. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  4. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
  5. Underweight

    1. A situation where a portfolio does not hold a sufficient amount of a particular security when compared to the security's ...
  6. Russell 3000 Index

    A market capitalization weighted equity index maintained by the Russell Investment Group that seeks to be a benchmark of ...
Trading Center