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1. Commercial paper is typically issued with a maturity date not exceeding:
A) 90 days
B) 270 days
C) 1 year
D) 6 months
2. Bubba Corporation has a registered public offering of 500,000 shares at $36. Of these, 300,000 shares
were authorized by unissued and 200,000 shares were sold on behalf of an affiliated person. What is
evident from this information?
A) the entire proceeds of the offering are a primary offering accruing to the corporation
B) both B and C
C) 60% of the proceeds are paid to the corporation and the balance accrues to the affiliated person
D) 300,000 shares are identified as a primary distribution
3. Which of the following is true of treasury stock?
A) it is stock that has been reacquired by the issuer
B) it has voting rights
C) it is stock that has not been issued
D) it is entitled to receive dividends
4. What is the loan value on a call option held in a customer's margin account?
A) 50%
B) 30%
C) the compliment of the FRB initial margin requirement for listed stocks
D) 0
5. In order to determine the amount of estate tax due, if any, the assets of a decedent's estate are valued as
of the date of death. A second evaluation is then made:
A) six months after the date of death
B) at any time up to six months after the date of death
C) one year after the date of death
D) three months after the date of death
Solutions:
| Question # 1 Answer: B | Question # 2 Answer: B | Question # 3 Answer: A | Question # 4 Answer: D | Question # 5 Answer: A |
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