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NEW QUESTION 27
What percentage load is associated with a mutual fund quoted 16.60-18.04?
- A. 8%
- B. 9%
- C. cannot be determined from this information
- D. 8.7%
Answer: A
Explanation:
8%. The sales charge in this case is $1.44. Dividing that into the offering price of $18.04 results in 8%.
NEW QUESTION 28
Which of the following does not describe an underwriting procedure?
- A. all or none
- B. best efforts
- C. fill or kill
- D. standby
Answer: C
Explanation:
Explanation/Reference:
Explanation: fill or kill. Fill or kill is an order qualifier. It requests immediate execution of the whole order or immediate cancellation. A best efforts underwriting, frequently linked to all or none, is usually seen on small new issues. A standby underwriting is utilized to guarantee the success of a rights offering.
NEW QUESTION 29
A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of common stock. If it already has six million shares outstanding at the time of the offering.
What subscription ratio is the corporation establishing for each new share?
- A. 6 million rights per share
- B. 6 rights per share
- C. 10 rights per share
- D. 10 million rights per share
Answer: B
Explanation:
Explanation/Reference:
Explanation: 6 rights per share. Each share receives a right and there are six million shares receiving rights to one million new shares. So six rights are required for one share.
NEW QUESTION 30
Which of the following types of investment companies pays out 90% of its net investment income to shareholders?
- A. diversified
- B. registered
- C. regulated
- D. balanced
Answer: C
Explanation:
regulated. Investment companies regulated by the Internal Revenue Code Subchapter M are required to pay out a minimum of 90% of their net income annually to their shareholders.
NEW QUESTION 31
Which of the following is not provided for by Blue Sky laws?
- A. registration of representatives
- B. interstate mail fraud in securities offerings
- C. registration of securities dealers
- D. registration of securities offered in the state
Answer: B
Explanation:
interstate mail fraud in securities offerings. Blue Sky laws are state security laws and do not cover interstate regulations.
NEW QUESTION 32
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