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SERIES 6 SEC 1.1

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An investor who seeks income from equity securities and has a conservative risk tolerance might be interested in all of the following except A. utility stocks. B. blue-chip stocks. C. technology stocks. D. preferred stocks.

technology stocks.

If a preferred stock pays a stated dividend of 6% and the issuer calls the stock, which of the following is not related to the call? A. Interest rates are probably lower than when the stock was issued. B. The investor will likely be paid at least the par value. C. Dividends scheduled to be paid after the call date are not paid. D. If a preferred stock is going to be called, it must happen on or after the first available call date.

Dividends scheduled to be paid after the call date are not paid.

Your 45-year-old client is interested in obtaining the highest current income possible from his investment. He is willing to accept fluctuations in investment principal. Which of the following would best suit this client's investment objective? A. High-yield bonds B. Aggressive growth stocks C. Tax-free money market securities D. A balanced portfolio of stocks and bonds

High-yield bonds

Seabird Airlines, Inc., pays a $0.40 a share quarterly dividend and shares are currently trading at $32 a share. The current yield for Seabird is А. 1.25%. B. 2.50%. C. 5.00%. D. 10.00%.

5.00%

Test your knowledge on equity securities suitable for conservative investors. Identify the option that does not align with the investment preferences of an investor with conservative risk tolerance.

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