series 7 final exam #1
what is the dividend payout ratio - correct answer ✔✔earnings per shares / common dividend
what describes a purchase of securities that is in book-entry form - correct answer ✔✔the transaction is
the transferring of securities and the entry by the issuer or transfer agent
what is the greatest risk of a long-term bond - correct answer ✔✔purchasing power risk - because the
money is usually tied up for 10-30 years
what has the least effect on the marketing of a bond - correct answer ✔✔the dated date - the date in
which interest starts to accrue, only affects those who buy on the original sale
what is the definition of time value of money - correct answer ✔✔the dollar value of future returns,
stated in relationship to the value of present returns
how does a city determine which bonds are selected from the sinking fund - correct answer ✔✔the
bonds are picked by inverse chronological order
how is a GTC order handled on the book of a specialist - correct answer ✔✔if properly renewed, the
order will not lose its place on the book
what is the placement ratio - correct answer ✔✔placements for the week divided by the new issues for
the week
what is considered negative info about a municipality issuing a new bond - correct answer ✔✔stable
debt, decreasing population
in terms of risk, when is the ratings of bonds negligible - correct answer ✔✔when there is almost a 1%
difference in interest rate between bonds that are closely rated
what is the dividend payout ratio - correct answer ✔✔earnings per shares / common dividend
what describes a purchase of securities that is in book-entry form - correct answer ✔✔the transaction is
the transferring of securities and the entry by the issuer or transfer agent
what is the greatest risk of a long-term bond - correct answer ✔✔purchasing power risk - because the
money is usually tied up for 10-30 years
what has the least effect on the marketing of a bond - correct answer ✔✔the dated date - the date in
which interest starts to accrue, only affects those who buy on the original sale
what is the definition of time value of money - correct answer ✔✔the dollar value of future returns,
stated in relationship to the value of present returns
how does a city determine which bonds are selected from the sinking fund - correct answer ✔✔the
bonds are picked by inverse chronological order
how is a GTC order handled on the book of a specialist - correct answer ✔✔if properly renewed, the
order will not lose its place on the book
what is the placement ratio - correct answer ✔✔placements for the week divided by the new issues for
the week
what is considered negative info about a municipality issuing a new bond - correct answer ✔✔stable
debt, decreasing population
in terms of risk, when is the ratings of bonds negligible - correct answer ✔✔when there is almost a 1%
difference in interest rate between bonds that are closely rated
