Summary: This is a Series 7 Lesson 18 Free Quiz which is covering Common Stocks. Try it and see how you do if you need help listen to the lesson over.<br> Series 7 Lesson 18 Free Quiz<br> This is a Series 7 Lesson 18 Free Quiz which is covering Common Stocks. Try it and see how you do if you need help listen to the lesson over.<br> Questions covered include<br> <br> <br> 1. In which of the following sections of the balance sheet is the common stock placed?<br> A. asset<br> B. equity<br> C. liability<br> D. revenue<br> <br> 2. A common stockholder owns a portion of the company.<br> A. True<br> B. False<br> <br> 3. Which of the following can issue common stock?<br> A. corporations<br> B. investment companies<br> C. both corporations and investment companies<br> D. neither corporations nor investment companies<br> <br> 4. A no par stock means ___.<br> A. the stock does not have voting rights<br> B. the stock does not receive dividends<br> C. the stock has a negligible or very low par value<br> D. the stock has no intrinsic value<br> <br> 5. Why do stocks have low par value?<br> A. A low par value allows more people to buy stocks and therefore increasing the company’s equity.<br> B. Lowering the par value also lowers the tax of the corporation.<br> C. The low par value ensures that the corporation issues only a sustainable amount of stock.<br> D. The New York Stock Exchange rules does not allow high par value.<br> <br> 6. These are shares that have been sold and then bought back by the company.<br> A. authorized shares<br> B. issued shares<br> C. outstanding shares<br> D. treasury shares<br> <br> 7. Which of the following is not included when computing for a company’s earnings per share?<br> A. authorized shares<br> B. issued shares<br> C. outstanding shares<br> D. treasury shares<br> <br> 8. The ___ handles the transfer of stock from an old stockholder to a new one.<br> A. bookkeeper<br> B. registrar<br> C. rights agent<br> D. transfer agent<br> <br> 9. Which of the following is true about the rights of a stockholder?<br> (Select all that apply.)<br> A. A stockholder has the right to vote at the company’s annual meeting.<br> B. The amount of votes that a stockholder has is determined by the number of shares he owns.<br> C. The stockholder has the right to buy shares of stock before they are offered to somebody else at the issue price.<br> D. The stockholder’s liability is limited to the value of his stocks.<br> Series 7 Lesson 18 Free Quiz: Common Stock Continued:<br> 10. According to the New York Stock Exchange rules, which of the following does NOT require a stockholder vote?<br> A. clearance of a stock split<br> B. declaration of a reverse stock split<br> C. issuance of convertible bonds<br> D. purchase of treasury stock<br> <br> 11. Under the New York Stock Exchange rules, a stock dividend can be made by the decision of the Board of Directors as long as the stock dividend is less than ___.<br> A. 10%<br> B. 15%<br> C. 20%<br> D. 25%<br> <br> 12. Only those stockholders present at the annual meeting can vote.<br> A. True<br> B. False<br> <br> 13. A stockholder can change his vote on his proxy statement if he attends the annual meeting.<br> A. True<br> B. False<br> <br> 14. Which of the following does NOT allow different classes of common stock?<br> A. American Stock Exchange<br> B. NASDAQ<br> C. New York Stock Exchange<br> D. All stock exchanges allow for different classes of common stock.<br> <br> 15. According to the Securities Act of ___, a common stockholder has the right to inspect the record book of stockholders.<br> A. 1933<br> B. 1934<br> C. 1943<br> D. 1944<br> <br> 16. Which of the following are negotiable securities according to the New York Stock Exchan...
