FINRA Series 7 - General Securities Representative Qualification Examination (GS) Exam
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Total 400 questions
Question #1 (Topic: Single Topic)
Which of the following preferred issues is likely to fluctuate most in value?
A. cumulative preferred
B. callable preferred
C. convertible preferred
D. broker preferred
Answer: C
Question #2 (Topic: Single Topic)
Which of the following rights does an ADR holder not have?
A. preemptive rights
B. the right to vote for your mother-in-law as a board member
C. the right to transfer ownership
D. the right to see financial statements
Answer: A
Question #3 (Topic: Single Topic)
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.
How many rights will the corporation distribute to its shareholders?
outstanding at the time of the offering.
How many rights will the corporation distribute to its shareholders?
A. one million
B. six million
C. ten million
D. sixteen million
Answer: B
Question #4 (Topic: Single Topic)
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 is the subscription price per share?
outstanding at the time of the offering.
What is the subscription price per share?
A. $4
B. $6
C. $7
D. $10
Answer: D
Question #5 (Topic: Single Topic)
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?
outstanding at the time of the offering.
What subscription ratio is the corporation establishing for each new share?
A. 6 rights per share
B. 10 rights per share
C. 6 million rights per share
D. 10 million rights per share
Answer: A
