FINRA Series 7 - General Securities Representative Qualification Examination (GS) Exam
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Total 400 questions
Question #11 (Topic: Single Topic)
Common stocks for which of the following industries are most likely to decline in value when interest rates rise?
A. automobile manufacturers
B. airlines
C. stock brokers
D. public utility companies
Answer: D
Question #12 (Topic: Single Topic)
Convertible preferred stock has all of the following characteristics except:
A. a lower dividend rate than non-convertible preferred
B. a dilution of earnings if converted into common stock
C. a requirement for shareholders to always accept the call price when called
D. required dividend payments to shareholders before any dividends are paid to holders of common stock
Answer: C
Question #13 (Topic: Single Topic)
Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?
A. 5.00
B. 98.96
C. 100.00
D. 105.10
Answer: B
Question #14 (Topic: Single Topic)
Bonds are most often quoted as a percentage of:
A. face value
B. book value
C. market value
D. whatever value the broker says
Answer: A
Question #15 (Topic: Single Topic)
Which of the following is a right for shareholders of common stock?
A. the right to have the stock price increase
B. the right to vote about important matters of the company
C. the right to dividends
D. both B and C
Answer: B
