FBLA SECURITIES AND INVESTMENTS QUESTIONS WITH CORRECT ANSWERS 2025

FBLA SECURITIES AND INVESTMENTS
QUESTIONS WITH CORRECT ANSWERS 2025
CommonHstockH-HCORRECTHANSWERH-
theHmostH"juniorHsecurity"HbecauseHitHranksHlastHinHlineHatHliquidation.HAnHequityHorHownershipHpo
sitionHthatHusuallyHallowsHtheHownerHtoHvoteHonHmajorHcorporateHissuesHsuchHasHstockHsplits,Hmer
gers,Hacquisitions,HauthorizingHmoreHshares,Hetc.



TransferHagentH-HCORRECTHANSWERH-
issuesHandHredeemsHcertificates.HHandlesHnameHchanges,HvalidatesHmutilatedHcertificates.HDistrib
utesHdividends,Hgains,HandHandHshareholderHreportsHtoHmutualHfundHinvestors.



registrarH-HCORRECTHANSWERH-
auditsHtheHtransferHagentHtoHmakeHsureHtheHnumberHofHauthorizedHsharesHisHneverHexceeded



dividendsH-HCORRECTHANSWERH-
moneyHpaidHfromHprofitsHtoHholdersHofHcommonHandHpreferredHstockHwheneverHtheHBoardHofHDir
ectorsHisHfeelingHespeciallyHgenerous



DeclarationHdateH-HCORRECTHANSWERH-theHdateHtheHBoardHofHDirectorsHdeclaresHaHdividend



RecordHdateH-HCORRECTHANSWERH-
theHdateHdeterminedHbyHtheHBoardHofHDirectorsHuponHwhichHtheHinvestorHmustHbeHtheH"holderHof
Hrecord"HinHorderHtoHreceiveHtheHupcomingHdividend.HSettlementHofHaHtradeHmustHoccurHbyHtheHre


cordHdateHforHtheHbuyerHtoHreceiveHtheHdividend



payableHdateH-HCORRECTHANSWERH-theHdateHthatHtheHdividendHcheckHisHpaidHtoHinvestors



regularHwayHsettlementH-HCORRECTHANSWERH-
TH+H3,HtradeHplusHthreeHbusinessHdays.HTH+H1HforHTreasuryHsecurities

,TH+H3H-HCORRECTHANSWERH-regularHwayHsettlement,HtradeHdateHplusHthreeHbusinessHdays



Ex-DateH-HCORRECTHANSWERH-
twoHdaysHbeforeHtheHRecordHDateHofHcorporateHstock.HTheHdateHuponHwhichHtheHbuyerHisHnotHenti
tledHtoHtheHupcomingHdividend.HNoteHthatHforHmutualHfunds,HthisHdateHisHestablishedHbyHtheHBoar
dHofHDirectors,HusuallyHtheHdayHafterHtheHRecordHDate



Pre-emptiveHrightH-HCORRECTHANSWERH-
theHrightHofHcommonHstockholdersHtoHmaintainHtheirHproportionalHownershipHifHtheHcompanyHoff
ersHmoreHsharesHofHstock



subscriptionHrightH-HCORRECTHANSWERH-
theHsecuritiesHusedHinHadditionalHofferingsHofHstockHtoHpurchaseHavailableHshares,HusuallyHatHaHslig
htHdiscount



warrantH-HCORRECTHANSWERH-
longHtermHequityHsecuritiesHgivingHtheHownerHtheHrightHtoHpurchaseHstockHatHaHsetHprice.HOFtenHat
tachedHasHaH"sweetener"HthatHmakesHtheHotherHsecurityHmoreHattractive



currencyHexchangeHriskH-HCORRECTHANSWERH-
theHriskHthatHtheHvalueHofHtheHU.S.HdollarHversusHanotherHcurrencyHwillHhaveHaHnegativeHimpactHon
HbusinessesHandHinvestors.




optionH-HCORRECTHANSWERH-
aHderivativeHgivingHtheHholderHtheHrightHtoHbuyHorHsellHsomethingHforHaHstatedHpriceHupHtoHexpirati
onHofHtheHcontract.HPutsHandHcalls



bullishH-HCORRECTHANSWERH-
anHinvestorHwhoHtakesHaHpositionHbasedHonHtheHbeliefHthatHtheHmarketHorHaHparticularHsecurityHwil
lHrise.HBuyersHofHstockHandHcallHoptions

, bearishH-HCORRECTHANSWERH-
anHinvestorHwhoHtakesHaHpositionHbasedHonHtheHbeliefHthatHtheHmarketHorHaHparticularHsecurityHwil
lHfall.HsellersHofHstockHandHbuyersHofHputHoptions



preferredHstockH-HCORRECTHANSWERH-aHfixed-
incomeHsecurityHwhoseHstatedHdividendsHmustHbeHpaidHbeforeHcommonHstockHcanHreceiveHanyHdi
videndHpayment.HAlsoHgetsHpreferenceHaheadHofHcommonHstockHinHaHliquidationH(butHbehindHallHb
ondsHandHgeneralHcreditors)



fixed-incomeHsecurityH-HCORRECTHANSWERH-
aHsecurityHpromisingHaHfixedHrateHofHinterestHorHdividends.



straightHpreferredHstockH-HCORRECTHANSWERH-
aHpreferredHstockHwhoseHmissedHdividendsHdoHnotHgoHintoHarrears,Ha.k.a.H"non-
cumulativeHpreferred."



cumulativeHpreferredHstockH-HCORRECTHANSWERH-
preferredHstockHwhereHmissedHdividendsHgoHintoHarrearsHandHmustHbeHpaidHbeforeHtheHissuerHma
yHpayHdividendsHtoHotherHpreferredHstockHand/orHcommonHstock



participatingHpreferredHstockH-HCORRECTHANSWERH-
preferredHstockHwhoseHdividendHisHoftenHraisedHaboveHtheHstatedHrate



convertibleHpreferredHstockH-HCORRECTHANSWERH-
aHpreferredHstockHorHcorporateHbondHallowingHtheHinvestorHtoHuseHtheHparHvalueHtoH"buy"HsharesH
ofHtheHcompany'sHcommonHstockHatHaHsetHprice



parHvalueH-HCORRECTHANSWERH-
theHfaceHamountHthatHaHdebtHsecurityHwillHpayHatHmaturity,He.g.,H$1000.HForHpreferredHstock,HtheH
amountHagainstHwhichHtheHdividendHpercentageHisHcalculated,He.g.,H$100HparHvalue