SIE Exam 2021(updated to pass)question and answers

SIE Exam 2021(updated to pass)question and answers What are statutory voting rights? - correct answer Allows the shareholder to vote one time per share for each seat on the board. If the investor owns 10 shares, she can use 10 shares to vote for position #1 and 10 shares to vote for position #2. What are cumulative voting rights? - correct answer Allows the shareholder to pool votes together and then allocate as desired. If the investor owns 10 shares and there are 2 open seats, she can use all 20 shares to vote for a single candidate. When are common stockholders paid in a liquidation? - correct answer Last What are pre-emptive rights? - correct answer Give investors the right to acquire additional shares to maintain a proportionate interest in a company's stock (not increase their position) when new shares are issued. This prevents dilution. Are rights and warrants traded as independent securities in the secondary market? - correct answer Yes Do warrants or rights remain outstanding longer? - correct answer Warrants Are warrants issued with intrinsic value? - correct answer No, they are not valuable until the stock's price increases. What is the market value of a warrant connected to? - correct answer The value of the underlying stock What is the exercise price of rights? - correct answer Below current market value