Which statements about common shareholder rights are FALSE? I. A shareholder may exchange shares to ...

By Investopedia Staff AAA
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.


RELATED FAQS

  1. The Chairman of Bright Star Life and Casual had a meeting with his broker this afternoon ...

    The correct answer is b) Insider trading would include information that is material and non-public. Certainly, a poor earnings ...
  2. If ABC Company had the following Income Statement figures, what is the Operating ...

    The correct answer is c): The operating margin is a very useful test of the efficiency of corporate management. Operating ...
  3. A customer sells a 6% corporate bond on Tuesday October 4th for regular settlement ...

    Free info on financial certification exams including study guides, exam questions, and much more!
  4. The Administrator issue may issue a stop order for a federal covered security under ...

    The correct answer is d. The Administrator may issue a stop order if it believes it to be in the best interest of the public, ...
RELATED TERMS
  1. Series 79

    A examination to ensure a candidate is qualified to become a ...
  2. Research Analyst

    A person who prepares investigative reports on equity securities. ...
  3. Series 34

    An exam required for individuals seeking to engage in off-exchange ...
  4. Financial Advisor

    One who provides financial advice or guidance to customers for ...
  5. Series 23

    An exam offered by the Financial Industry Regulatory Authority ...
  6. Series 28

    An exam given by the Financial Industry Regulatory Authority ...

You May Also Like

Related Articles
  1. Insurance

    Municipal Bond Tips For The Series 7 ...

  2. Retirement

    6 Proven Tips For Series 6 Success

  3. Insurance

    Tips For Passing The Series 6 Exam

  4. Professionals

    Banker Or Broker: Which Career Is Right ...

  5. Professionals

    Breaking Down Financial Securities Licenses

Trading Center