Series 65 Exam Lesson 17 Quiz
This is a Series 65 Exam Lesson 17 Quiz, Exam Lesson 17 Free Quiz which is covering Special Securities. Try it and see how you do if you need help listen to the lesson over.
Series 65 Lesson 17 Quiz
This is a Series 65 Lesson 17 Quiz which is covering Preferred Stocks. Try it and see how you do if you need help listen to the lesson over.
Questions covered include
Questions:
1. These are rights to purchase stock at specific prices that are long-term in nature.
A. purchasing rights
B. preemptive rights
C. option rights
D. warrants
2. To which of the following can warrants be attached to?
A. sale of a common stock
B. sale of a preferred stock
C. sale of a bond
D. all of the above
3. Warrants can be traded but they should be traded along with the stock or bond that comes with them.
A. True
B. False
4. The value of the warrant is based on the ___ that it is tied to.
A. stock
B. dividend of the stock
C. interest rate of the stock
D. par value of the stock
5. Warrants allow trading foreign stocks on the US markets.
A. True
B. False
6. Rights to buy a new stock come about as a result of ___.
A. preemptive rights
B. purchasing rights
C. voting rights
D. warrants
7. How are warrants and rights similar?
A. Both warrants and rights are traded separately from the stock that they are attached to.
B. They both serve as enticement to buy stocks.
C. They are both special securities.
D. all of the above
8. How are warrants and rights different?
A. Warrants are short term in nature while rights are long term in nature.
B. Warrants are long term in nature while rights are short term in nature.
C. Warrants are attached to stocks while rights are not attached to stocks.
D. Rights are attached to stocks while warrants are not attached to stocks.
9. The warrant can be exercised immediately after the issuance of the bond or stock that is attached to it.
A. True
B. False
10. All warrants have expiration dates.
A. True
B. False
Series 65 Exam Lesson 17 Quiz: Special Securities Continued
11. Why would companies issue warrants?
A. It would lower their tax.
B. It would increase the stock price at the secondary market.
C. It would increase their ability to issue a secondary offering of stocks at a slightly higher price.
D. all of the above
12. In order for a warrant to have an intrinsic value, ___.
A. The warrant must have a price equal to the price of the stock it is attached to.
B. The warrant must have a price higher than the price of the stock it is attached to.
C. The warrant must have a price lower than the price of the stock it is attached to.
D. The warrant must have a constant price regardless of the price of the stock it is attached to.
13. This is a negotiable security that represents securities of a non-U.S. company that trades in the U.S. financial markets.
A. bond
B. right
C. ADR
D. warrant
14. What does ADR stand for?
A. American Dividend Receipts
B. American Differential Receipts
C. American Development Receipts
D. American Depository Receipts
15. The dividends of the ADR are paid ___.
A. in US currency only
B. only in the currency of the country of the investor who bought the ADR
C. in either US currency or the investor’s country currency, whichever has the lower dividend after currency conversion
D. in any currency that the bank offers where the dividend is claimed
16. Non-sponsored ADRs are assembled by banks and brokers without the participation of the issuer of the stock.
A. True
B. False
17. How does the sponsored ADRs and non-sponsored ADRs differ?
A. Issuers of sponsored ADRs does not work with the bank or the broker in creating ADRs while issuers of non-sponsored ADRs work with the bank or the broker in creating ADRs.
B. Issuers of sponsored ADRs must provide annual and quarterly reports in English to the holders of the ADR while this is not required for the issuers of non-sponsored ADRs.
C. Holders of sponsored ADRs have voting and preemptive rights while holders of non-sponsored ADRs do not have voting and preemptive rights.
D. all of the above
18. What are the risks in ADRs?
A. currency risk
B. market risk
C. stock ownership risk
D. all of the above
19. How are foreign taxes handled in ADRs?
A. Foreign taxes reduce depending on the total value of warrant attached to the ADR.
B. Foreign taxes increase depending on the total value of warrant attached to the ADR.
C. The tax withheld can be reclaimed by the ADR holders as a credit when paying their US taxes.
D. The tax withheld can be reclaimed by the ADR holders as a debit when paying their US taxes.
20. What is the advantage of using ADRs?
A. Non-American companies using ADRs have liquidity in the US stock market.
B. Non-American companies using ADRs are not registered in the United States and therefore exempted from the reporting rules by the Securities and Exchange Commission.
C. Using ADRs instead of common stocks reduces time and cost.
D. all of the above
We hope you did well on this Series 65 Lesson 17 Free Quiz
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The Series 65 Exam which can lead to the candidate being licensed as an Investment Advisor Representative.
The other possible exam would be the series 66 examination.
What is the Series 65 Exam?
The Series 65 Exam
The Series 65 is another path to becoming an Investment Advisor Representative (IAR)
Sometimes called the IAR in a box
Unlike the Series 66 Exam the Series 65 exam does not have the Series 7 Requirement
The Series 65 unlike broker-dealer exams (think the Series 7 Exam) the Series 65 Exam requires no company sponsor.
When taking the Series 65 to join an RIA firm as a IAR, candidates must complete the exam within 180 minutes. A passing score is 72%, which translates to correctly answering 94 of the 130 scored questions. The Financial Industry Regulatory Authority, which administers the exam, does not release Series 65 pass rates. But this is a TOUGH exam, many people do not pass on the first try.
The test covers financial industry regulation, securities law, ethics, investments and economics. All these topics factor into a financial advisor’s day-to-day work. Most candidates devote considerable time to studying for the Series 65.
Different States have different requirements in become an Investment Advisor Representative (IAR) so check your states department of securities licensing to find out its requirements.
Series 65 vs Series 66 Exam
The Series 65 exam is designed for those who do not have a Series 7 license. The content of both exams are similar though the Series 65 will be more heavily concentrated on Investment products and economics (like you would need to learn for the SIE and Series 7 Exam). … The Series 66 exam has a little more State law (such as what you will find in the Series 63 Exam) and some esoteric investment products.
Our audio lessons for both the Series 65 and Series 66 cover the material you would need to learn for the SIE and Series 7 exam so it may be a little more than you need for the Series 66 but we want you to be fully prepared!
The only difference between the two series of exam lessons (the 65 and 66) is that the Series 66 exam also covers the material needed for the Series 63 exam.
Our other website s for FINRA and other certification Exams include:
https://www.series7podcast.com
https://www.series7podcast.com
https://insuranceexampodcast.com
https://insuranceexampodcast.com
https://www.reexampodcast.com/
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