SECURITIES ANALYSIS EXAMINATION QUESTIONS AND CORRECT ANSWER WITH RATIONALE GRADED A+ STUDY GUIDE

SECURITIES ANALYSIS EXAMINATION QUESTIONS AND
CORRECT ANSWER WITH RATIONALE GRADED A+ STUDY
GUIDE SOUTHERN NEW HAMPSHIRE UNIVERSITY
1. Securities analysis is the study of:
A. Investment instruments to determine value
B. Tax systems only
C. Insurance contracts only
D. Marketing strategies
Answer: A
Rationale: It evaluates securities for investment decisions.

2. A security refers to:
A. Financial instrument representing value
B. Physical asset only
C. Tax document
D. Loan agreement only
Answer: A
Rationale: Includes stocks, bonds, etc.

3. Equity security represents:
A. Ownership in a company
B. Debt obligation
C. Insurance policy
D. Bank deposit
Answer: A
Rationale: Shares represent ownership.

4. Debt security represents:
A. Borrowed funds to be repaid
B. Ownership
C. Insurance claim
D. Tax liability
Answer: A
Rationale: Bonds are debt instruments.

5. Common stockholders have:
A. Voting rights

, B. Fixed interest only
C. No rights
D. Loan rights
Answer: A
Rationale: Ownership control rights.

6. Preferred stock typically offers:
A. Fixed dividends
B. Voting control
C. No returns
D. Tax exemption
Answer: A
Rationale: Priority dividend payments.

7. Bond is:
A. Debt instrument
B. Equity instrument
C. Insurance product
D. Commodity
Answer: A
Rationale: Fixed-income security.

8. Coupon rate refers to:
A. Interest rate on bonds
B. Stock price
C. Dividend tax
D. Inflation rate
Answer: A
Rationale: Periodic bond interest.

9. Yield is:
A. Return on investment
B. Tax rate
C. Loan amount
D. Inflation rate
Answer: A
Rationale: Investment return measure.

10. Market value is:
A. Current trading price

, B. Book value
C. Nominal value
D. Face value only
Answer: A
Rationale: Price in market.

11. Book value is:
A. Accounting value of asset
B. Market price
C. Trading value
D. Tax value
Answer: A
Rationale: Based on financial statements.

12. Face value of bond is:
A. Amount repaid at maturity
B. Market price
C. Dividend
D. Interest rate
Answer: A
Rationale: Principal amount.

13. Dividend is:
A. Profit distribution to shareholders
B. Loan repayment
C. Tax payment
D. Insurance premium
Answer: A
Rationale: Shareholder income.

14. Capital gain is:
A. Profit from asset sale
B. Interest payment
C. Tax refund
D. Salary income
Answer: A
Rationale: Asset appreciation profit.

15. Capital loss is:
A. Loss from asset sale