Podcast
Questions and Answers
Which of the following transactions does not require a risk disclosure?
Which of the following transactions does not require a risk disclosure?
- A stock transaction not recommended by a BD or a RR (correct)
- A product dividend distribution to an established customer
- A mutual fund transaction not recommended by a RR
- A stock transaction recommended by a BD
What is the purpose of the Ex-Dividend Date in dividend distribution?
What is the purpose of the Ex-Dividend Date in dividend distribution?
- To determine the stockholders of record for dividend distribution
- To make the dividend payment to the stockholders
- To trade the stock without the dividend (correct)
- To declare the dividend to the public
Who sets the Record Date in the dividend distribution process?
Who sets the Record Date in the dividend distribution process?
- The Board of Directors (BOD) (correct)
- FINRA or the exchange
- The brokerage firm
- The stockholders of record
What is the meaning of the acronym DERP in the context of dividend distribution?
What is the meaning of the acronym DERP in the context of dividend distribution?
How many business days does it take for a trade to settle?
How many business days does it take for a trade to settle?
What is the exception to the Ex-Date rule in dividend distribution?
What is the exception to the Ex-Date rule in dividend distribution?
What is the purpose of a buyback?
What is the purpose of a buyback?
What is a tender offer?
What is a tender offer?
Why might a company make a tender offer on its own debt?
Why might a company make a tender offer on its own debt?
What is the tax implication of a stock split or stock dividend?
What is the tax implication of a stock split or stock dividend?
What happens to the number of outstanding shares when a company buys back its own shares?
What happens to the number of outstanding shares when a company buys back its own shares?
Why might a company prefer share buybacks to paying dividends?
Why might a company prefer share buybacks to paying dividends?
What is the maximum duration for a rights offering?
What is the maximum duration for a rights offering?
What is the main difference between rights and warrants?
What is the main difference between rights and warrants?
What happens to the number of shares outstanding in a forward stock split?
What happens to the number of shares outstanding in a forward stock split?
What is the tax consequence of a stock dividend?
What is the tax consequence of a stock dividend?
What is the purpose of an antidilution provision?
What is the purpose of an antidilution provision?
What is the term for a long-term contract to buy stock at a specific price?
What is the term for a long-term contract to buy stock at a specific price?
