FBLA - Securities and Investments Practice Solution Manual Fully Solved Latest Update 2025 Already Passed

FBLA - Securities and Investments Practice Solution Manual Fully Solved Latest Update 2025 Already Passed Common stock - Answers the most "junior security" because it ranks last in line at liquidation. An equity or ownership position that usually allows the owner to vote on major corporate issues such as stock splits, mergers, acquisitions, authorizing more shares, etc. Transfer agent - Answers issues and redeems certificates. Handles name changes, validates mutilated certificates. Distributes dividends, gains, and and shareholder reports to mutual fund investors. registrar - Answers audits the transfer agent to make sure the number of authorized shares is never exceeded dividends - Answers money paid from profits to holders of common and preferred stock whenever the Board of Directors is feeling especially generous Declaration date - Answers the date the Board of Directors declares a dividend Record date - Answers the date determined by the Board of Directors upon which the investor must be the "holder of record" in order to receive the upcoming dividend. Settlement of a trade must occur by the record date for the buyer to receive the dividend payable date - Answers the date that the dividend check is paid to investors regular way settlement - Answers T + 3, trade plus three business days. T + 1 for Treasury securities T + 3 - Answers regular way settlement, trade date plus three business days Ex-Date - Answers two days before the Record Date of corporate stock. The date upon which the buyer is not entitled to the upcoming dividend. Note that for mutual funds, this date is established by the Board of Directors, usually the day after the Record Date Pre-emptive right - Answers the right of common stockholders to maintain their proportional ownership if the company offers more shares of stock subscription right - Answers the securities used in additional offerings of stock to purchase available shares, usually at a slight discount warrant - Answers long term equity securities giving the owner the right to purchase stock at a set price. OFten attached as a "sweetener" that makes the other security more attractive currency exchange risk - Answers the risk that the value of the U.S. dollar versus another currency will have a negative impact on businesses and investors. option - Answers a derivative giving the holder the right to buy or sell something for a stated price up to expiration of the contract. Puts and calls bullish - Answers an investor who takes a position based on the belief that the market or a particular security will rise. Buyers of stock and call options bearish - Answers an investor who takes a position based on the belief that the market or a particular security will fall. sellers of stock and buyers of put options preferred stock - Answers a fixed-income security whose stated dividends must be paid before common stock can receive any dividend payment. Also gets preference ahead of common stock in a liquidation (but behind all bonds and general creditors) fixed-income security - Answers a security promising a fixed rate of interest or dividends. straight preferred stock - Answers a preferred stock whose missed dividends do not go into arrears, a.k.a. "non-cumulative preferred." cumulative preferred stock - Answers preferred stock where missed dividends go into arrears and must be paid before the issuer may pay dividends to other preferred stock and/or common stock participating preferred stock - Answers preferred stock whose dividend is often raised above the stated rate convertible preferred stock - Answers a preferred stock or corporate bond allowing the investor to use the par value to "buy" shares of the company's common stock at a set price par value - Answers the face amount that a debt security will pay at maturity, e.g., $1000. For preferred stock, the amount against which the dividend percentage is calculated, e.g., $100 par value growth - Answers investment objective that seeks "capital appreciation." Achieved through common stock, primarily. income - Answers investment objective that seeks current income, found by investing in fixed income, e.g., bonds, money market, preferred stock. An equity income fund buys stocks that pay dividends; less volatile than a growth and income or a pure growth fund. capital appreciation - Answers the rise in an asset's market price. The objective of a "growth stock investor." yield - Answers the income a security produces to the holder and capital gains distributions total return - Answers measuring growth in share price plus dividends and capital gains distributions IPO - Answers a corporation's first sale of stock to public investors, By definition, a primary market transaction in which the issuer receives the proceeds Primary market - Answers where securities are issued to raise capital for the issuer secondary market - Answers a "negotiated market" including NASDAQ and non- NASDAQ securities trading registration statement - Answers the legal document disclosing material information concerning an offering of a security and its issuer. Submitted to SEC under Securities Act of 1933 Securities Act of 1933 - Answers a.k.a., "Paper Act," regulates the new-issue or primary market, requiring non-exempt issuers to register securities and provide full disclosure cooling off period - Answers a minimum 20-day period that starts after the registration statement is filed. No sales or advertising allowed during this period, which lasts until the effective or release date. indication of interest - Answers an investor's expression of interest in purchasing a new issue of securities after reading the preliminary prospectus; not a commitment to buy preliminary prospectus - Answers a.k.., "red herring," a prospectus that lacks the "POP" and the effective date. Used to solicit indications of interest. effective date - Answers date established by SEC as to when the underwriters may sell new securities to investors, a.k.a. "release date." public offering price - Answers a.k.a., "POP,' the price an investor pays for a mutual fund or an initial public offering. For a mutual fund= NAV + the sales charge.