Series 7

Series 7 practice questions, page 2 of 16, with answer review and explanations.

Question 6

Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?

  1. 5.00
  2. 98.96
  3. 100.00
  4. 105.10

Question 7

Bonds are most often quoted as a percentage of:

  1. face value
  2. book value
  3. market value
  4. whatever value the broker says

Question 8

Which of the following is a right for shareholders of common stock?

  1. the right to have the stock price increase
  2. the right to vote about important matters of the company
  3. the right to dividends
  4. both B and C

Question 9

Who owns a corporation?

  1. the owners of debentures
  2. the holders of common stock
  3. the holders of common stock and the holders of preferred stock
  4. the government

Question 10

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