Series 7

Series 7 practice questions, page 3 of 16, with answer review and explanations.

Question 11

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

Question 12

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

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

Question 13

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

Question 14

Bubba owns a subordinated debenture in a company that is liquidating. When will he get paid?

  1. after the company pays its outstanding bills, but before paying bank loans
  2. after the bills are paid and the bank is paid, but before the preferred shareholders
  3. before the holders of secured debt
  4. after the shareholders of preferred stock

Question 15

When a corporation dissolves, who gets paid first?

  1. bank lenders
  2. senior bond holders
  3. the tax collector
  4. the lawyer