SECURITIES INDUSTRY ESSENTIALS EXAM
STUDY GUIDE 2023 + TEST BANK
,CONTENTS
CHAPTER 1
EQUITY SECURITIES
What Is a Security?
Equity = Stock
Common Stock
Corporate Time Line
Authorized Stock
Issued Stock
Outstanding Stock
Treasury Stock
Values of Common Stock
Book Value
Par Value
Rights of Common Stockholders
Preemptive Rights
Characteristics of a Rights O ering
Determining the Value of a Right Cum Rights
Determining the Value of a Right Ex Rights
Voting
Methods of Voting
Limited Liability
Freely Transferable
The Transfer Agent
The Registrar
CUSIP Numbers
Inspection of Books and Records
Residual Claim to Assets
Why Do People Buy Common Stock?
,Income
What Are the Risks of Owning Common Stock?
Dividends May Be Stopped or Reduced
Junior Claim on Corporate Assets
How Does Someone Become a Stockholder?
Trade Date
Settlement Date
Payment Date
Violation
Preferred Stock
Features of All Preferred Stock
Par Value
Payment of Dividends
Distribution of Assets
Perpetual
Nonvoting
Interest Rate Sensitive
Types of Preferred Stock
Straight/Noncumulative
Cumulative Preferred
Participating Preferred
Convertible Preferred
Callable Preferred
Types of Dividends
Cash
Stock
Property/Product
Dividend Distribution
Declaration Date
Ex-Dividend Date
Record Date
Payment Date
, Stock Price and the Ex-Dividend Date
Taxation of Dividends
Selling Dividends
Dividend Disbursement Process
Warrants
How Do People Get Warrants?
Units
Attached to Bonds
Secondary Market
Possible Outcomes of a Warrant
American Depositary Receipts (ADR)/American Depositary Shares
(ADS)
Currency Risks
Functions of the Custodian Bank Issuing ADRs
Global Depositary Receipts
Real Estate Investment Trusts/REITs
Non-Traded REITs
Direct Participation Programs and Limited Partnerships
Limited Partnerships
Structuring and O ering Limited Partnerships
Types of Limited Partnerships
Tax Reporting for Direct Participation Programs
Limited Partnership Analysis
Tax Deductions vs. Tax Credits
Other Tax Considerations
Dissolving a Partnership
CHAPTER 2
CORPORATE AND MUNICIPAL DEBT SECURITIES
Corporate Bonds
Types of Bond Issuance
STUDY GUIDE 2023 + TEST BANK
,CONTENTS
CHAPTER 1
EQUITY SECURITIES
What Is a Security?
Equity = Stock
Common Stock
Corporate Time Line
Authorized Stock
Issued Stock
Outstanding Stock
Treasury Stock
Values of Common Stock
Book Value
Par Value
Rights of Common Stockholders
Preemptive Rights
Characteristics of a Rights O ering
Determining the Value of a Right Cum Rights
Determining the Value of a Right Ex Rights
Voting
Methods of Voting
Limited Liability
Freely Transferable
The Transfer Agent
The Registrar
CUSIP Numbers
Inspection of Books and Records
Residual Claim to Assets
Why Do People Buy Common Stock?
,Income
What Are the Risks of Owning Common Stock?
Dividends May Be Stopped or Reduced
Junior Claim on Corporate Assets
How Does Someone Become a Stockholder?
Trade Date
Settlement Date
Payment Date
Violation
Preferred Stock
Features of All Preferred Stock
Par Value
Payment of Dividends
Distribution of Assets
Perpetual
Nonvoting
Interest Rate Sensitive
Types of Preferred Stock
Straight/Noncumulative
Cumulative Preferred
Participating Preferred
Convertible Preferred
Callable Preferred
Types of Dividends
Cash
Stock
Property/Product
Dividend Distribution
Declaration Date
Ex-Dividend Date
Record Date
Payment Date
, Stock Price and the Ex-Dividend Date
Taxation of Dividends
Selling Dividends
Dividend Disbursement Process
Warrants
How Do People Get Warrants?
Units
Attached to Bonds
Secondary Market
Possible Outcomes of a Warrant
American Depositary Receipts (ADR)/American Depositary Shares
(ADS)
Currency Risks
Functions of the Custodian Bank Issuing ADRs
Global Depositary Receipts
Real Estate Investment Trusts/REITs
Non-Traded REITs
Direct Participation Programs and Limited Partnerships
Limited Partnerships
Structuring and O ering Limited Partnerships
Types of Limited Partnerships
Tax Reporting for Direct Participation Programs
Limited Partnership Analysis
Tax Deductions vs. Tax Credits
Other Tax Considerations
Dissolving a Partnership
CHAPTER 2
CORPORATE AND MUNICIPAL DEBT SECURITIES
Corporate Bonds
Types of Bond Issuance
