This is a SIE Exam Lesson 2 Free Quiz which is covering Common Stocks. Try it and see how you do if you need help listen to the lesson over.

SIE Exam Lesson 3 Free Quiz

This is a SIE Exam Lesson 3 Free Quiz which is covering Preferred Stocks. Try it and see how you do if you need help listen to the lesson over.

Questions covered include

1. In which of the following sections of the balance sheet is the common stock placed?

A. asset

B. equity

C. liability

D. revenue

2. A common stockholder owns a portion of the company.

A. True

B. False

3. Which of the following can issue common stock?

A. corporations

B. investment companies

C. both corporations and investment companies

D. neither corporations nor investment companies

4. A no par stock means ___.

A. the stock does not have voting rights

B. the stock does not receive dividends

C. the stock has a negligible or very low par value

D. the stock has no intrinsic value

5. Why do stocks have low par value?

A. A low par value allows more people to buy stocks and therefore increasing the company’s equity.

B. Lowering the par value also lowers the tax of the corporation.

C. The low par value ensures that the corporation issues only a sustainable amount of stock.

D. The New York Stock Exchange rules does not allow high par value.

6. These are shares that have been sold and then bought back by the company.

A. authorized shares

B. issued shares

C. outstanding shares

D. treasury shares

7. Which of the following is not included when computing for a company’s earnings per share?

A. authorized shares

B. issued shares

C. outstanding shares

D. treasury shares

8. The ___ handles the transfer of stock from an old stockholder to a new one.

A. bookkeeper

B. registrar

C. rights agent

D. transfer agent

9. Which of the following is true about the rights of a stockholder?

(Select all that apply.)

A. A stockholder has the right to vote at the company’s annual meeting.

B. The amount of votes that a stockholder has is determined by the number of shares he owns.

C. The stockholder has the right to buy shares of stock before they are offered to somebody else at the issue price.

D. The stockholder’s liability is limited to the value of his stocks.

SIE Exam Lesson 3 Free Quiz: Continued

10. According to the New York Stock Exchange rules, which of the following does NOT require a stockholder vote?

A. clearance of a stock split

B. declaration of a reverse stock split

C. issuance of convertible bonds

D. purchase of treasury stock

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 ___.

A. 10%

B. 15%

C. 20%

D. 25%

12. Only those stockholders present at the annual meeting can vote.

A. True

B. False

13. A stockholder can change his vote on his proxy statement if he attends the annual meeting.

A. True

B. False

14. Which of the following does NOT allow different classes of common stock?

A. American Stock Exchange

B. NASDAQ

C. New York Stock Exchange

D. All stock exchanges allow for different classes of common stock.

15. According to the Securities Act of ___, a common stockholder has the right to inspect the record book of stockholders.

A. 1933

B. 1934

C. 1943

D. 1944

16. Which of the following are negotiable securities according to the New York Stock Exchange rules?

A. certificates of deposit

B. mutual funds

C. savings bond

D. transfer of ownership

17. A stockholder is not allowed to sell his right to buy a stock.

A. True

B. False

18. In the event of a corporate dissolution or bankruptcy, a common stockholder has the right to the corporate assets.

A. True

B. False

19. The normal settlement states that you need to own the stock and be an owner of record at least ___ business days before the record date in order to be a stockholder of record.

A. one

B. two

C. three

D. four

20.