FINRA Series 7 - General Securities Representative Qualification Examination (GS) Exam
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Total 400 questions
Question #6 (Topic: Single Topic)
Bubba owns stock with cumulative voting rights. There are five vacancies on a board and he owns 100 shares of stock. Bubba is entitled to cast the following
votes:
votes:
A. a total of 100 votes
B. a total of 100 votes per
C. a total of 500 votes
D. you are not allowed to vote
Answer: C
Question #7 (Topic: Single Topic)
The definition of debentures is:
A. a loan secured by real estate
B. collateralized securities
C. a worthless security
D. securities backed by the general credit of the issuers but no specific collateral
Answer: D
Question #8 (Topic: Single Topic)
Convertible bonds have all of the following features except:
A. an ability to protect a short position on the stock into which they are convertible
B. permissibility for use as collateral
C. a normally higher yield than non-convertible bonds of the same issuer
D. fluctuations influenced by changes in the price of the underlying common stock
Answer: C
Question #9 (Topic: Single Topic)
Although a corporation has no earnings in a particular year, it is obligated to pay interest on all its outstanding debt except the following:
A. convertible subordinated debentures
B. collateral trust bonds
C. adjustment bonds
D. equipment trust certificates
Answer: C
Question #10 (Topic: Single Topic)
Interest rates rise from 5.10% to 5.30%. For a prospective buyer of five $1,000 bonds, what is the increase in interest payments as a result of the rise?
A. $20
B. $100
C. $2
D. $10
Answer: D
