MASTERY EXAM #1 questions with complete
solutions graded A+
1. In a corporate liquidation, the last to get qualified
paid is: pur-
chasers
A. Unpaid wages and taxes
B. Bondholders
C. Preferred stockholders
D. Common stockholders
2. All of the following are types of oil and
gas direct participation programs EXCEPT:
A. Balanced
B. Income
C. Exploratory
D. Developmental
3. The term "publicly traded fund" is the
common name for a(n):
A. open end management company
B. closed end management company
C. fixed unit investment trust
D. participating unit investment trust
4. When comparing a mutual fund to a hedge
fund, which statement is FALSE?
A. Hedge funds are less regulated
B. Hedge funds are more risky
C. Hedge funds are only available to
1/
137
,MASTERY EXAM #1 questions with complete
solutions graded A+
D. Common stockholders
A. Balanced
B. closed end manage- ment company
D. Hedge funds are liquid
2/
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, MASTERY EXAM #1
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D. Hedge funds are liquid
5. All of the following statements are true regarding the D. ADRs are
traded on
trading of ADRs EXCEPT: B. 10
C. 100
D. 1,000
A. ADRs are traded on the New York Stock
Exchange
B. ADRs are traded on the NASDAQ Stock Market
C. ADRs are traded on the American Stock
Exchange
D. ADRs are traded on the Chicago Board
Options Exchange
6. ABC 8% $100 par preferred is trading at
$105 in the market. The current yield is:
A. 6.6%
B. 7.6%
C. 8.6%
D. 10.6%
7. An ADR has been issued where each ADR
equals 600 ordinary shares of the foreign
issuer. If a client wished to buy enough ADRs
to cover 6,000 ordinary shares, how many
ADRs must be purchased?
A. 1
3/
137
, MASTERY EXAM #1
Study online at
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the Chicago Board Op- tions Exchange
B. 7.6%
ANNUAL INCOME/MAR- KET PRICE
= CURRENT YIELD
$8/$105= 7.6%
B. 10
Since each ADR equals 600 ordinary shares, then 10 ADRs equals 6,000
or- dinary shares.
4/
137
solutions graded A+
1. In a corporate liquidation, the last to get qualified
paid is: pur-
chasers
A. Unpaid wages and taxes
B. Bondholders
C. Preferred stockholders
D. Common stockholders
2. All of the following are types of oil and
gas direct participation programs EXCEPT:
A. Balanced
B. Income
C. Exploratory
D. Developmental
3. The term "publicly traded fund" is the
common name for a(n):
A. open end management company
B. closed end management company
C. fixed unit investment trust
D. participating unit investment trust
4. When comparing a mutual fund to a hedge
fund, which statement is FALSE?
A. Hedge funds are less regulated
B. Hedge funds are more risky
C. Hedge funds are only available to
1/
137
,MASTERY EXAM #1 questions with complete
solutions graded A+
D. Common stockholders
A. Balanced
B. closed end manage- ment company
D. Hedge funds are liquid
2/
137
, MASTERY EXAM #1
Study online at
https://quizlet.com/_65kwlf
D. Hedge funds are liquid
5. All of the following statements are true regarding the D. ADRs are
traded on
trading of ADRs EXCEPT: B. 10
C. 100
D. 1,000
A. ADRs are traded on the New York Stock
Exchange
B. ADRs are traded on the NASDAQ Stock Market
C. ADRs are traded on the American Stock
Exchange
D. ADRs are traded on the Chicago Board
Options Exchange
6. ABC 8% $100 par preferred is trading at
$105 in the market. The current yield is:
A. 6.6%
B. 7.6%
C. 8.6%
D. 10.6%
7. An ADR has been issued where each ADR
equals 600 ordinary shares of the foreign
issuer. If a client wished to buy enough ADRs
to cover 6,000 ordinary shares, how many
ADRs must be purchased?
A. 1
3/
137
, MASTERY EXAM #1
Study online at
https://quizlet.com/_65kwlf
the Chicago Board Op- tions Exchange
B. 7.6%
ANNUAL INCOME/MAR- KET PRICE
= CURRENT YIELD
$8/$105= 7.6%
B. 10
Since each ADR equals 600 ordinary shares, then 10 ADRs equals 6,000
or- dinary shares.
4/
137
