Podcast Beta
Questions and Answers
- Under Rule 144, which of the following sales are subject to volume limitations on the number of shares sold?
I. Control person selling registered stock held for one year
II. Control person selling restricted stock held for two years
III. Nonaffiliate selling registered stock held for one month
IV. Nonaffiliate selling restricted stock held for more than six months
A. land II
B. land III
C. land IV
D. Ill and IV
2 Your client holds ADRs of Daikon Motors, Inc., an automobile manufacturer based in Asia. All of the following are true about the position except A. they will receive dividends in U.S. dollars B. the security may be traded in U.S. markets C. they have the same voting rights as an owner of the common stock . D. they have the right to request the underlying common shares be issued to them directly
- For this election cycle, Big Trucks, Inc., has three open board seats. Big Trucks operates under a cumulative voting system. Your customer owns 300 participating preferred shares of Big Trucks. He has
A. 900 votes he can divide any way he wants among the three seats
B. no voting rights
C. 300 votes each for the open seats
D. 300 votes total to spread among the three open seats
- In 2016, RST Corporation had both common stock and $100 par value 4% noncumulative preferred stock outstanding. The preferred, like the common stock, pays dividends on a quarterly basis. Because of financial difficulties, the company stopped paying dividends after 2016. After resolving its problems in 2020, the company resumed dividend payments in 2021. Before paying the first quarterly common stock dividend that year, the company would have to pay a quarterly dividend to the preferred stockholders of
A. $1
B. $4
C. $17
D. $20
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- All of the following are true for ADRs except
A. ADRs are U.S.-issued securities
B. ADRs pay dividends in U.S. dollars
C. ADRs are not subject to currency risk
D. ADRs represent a foreign security in the domestic market
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