Practice Test Series 65 Questions with Correct
Answers
what is the equation for operating margin? Correct Answer-net profit /
revenue
what type of risk does beta calculate? Correct Answer-systematic risk,
risk of a single security compared to the market as a whole
what type of risk is eliminated if you always hold a bond until maturity?
Correct Answer-interest rate risk
can preferred stock ever be called back by a company? Correct Answer-
yes
do you have voting rights if you hold an ADR? Correct Answer-no
what are some things that fundamental analysts look for? Correct
Answer-fiscal policy, money supply, industry analysis, monetary policy,
interest rates, and the economic environment.
what type of risk does a zero coupon bond not have? Correct Answer-
reinvestment risk
what should be associated with OTC markets? Correct Answer-massive
market, trades government securities etc
, does a corporation have to pay a production tax? Correct Answer-no
what is an Alien Corporation? Correct Answer-incorporated in a country
other than the United States
what is a Foreign Corporation? Correct Answer-conducts business
outside of the state of its incorporation
what are examples of penalty free withdrawals from a traditional IRA?
Correct Answer-medical bills, tuition expenses, first time home
purchase, disability, beneficiary of deceased who previously held IRA
when can a short sale take place? Correct Answer-Only on an up-tick or
zero-uptick price movement
when you inherit a security what is your cost basis? Correct Answer-
when the death occurs the fair value of the security is your cost basis,
and it is always a long term gain
what is a way to combat the probate court process? Correct Answer-
setting up a trust
to determine a fair price to charge as a commission what should be
considered? Correct Answer-the type of security, current market price
Answers
what is the equation for operating margin? Correct Answer-net profit /
revenue
what type of risk does beta calculate? Correct Answer-systematic risk,
risk of a single security compared to the market as a whole
what type of risk is eliminated if you always hold a bond until maturity?
Correct Answer-interest rate risk
can preferred stock ever be called back by a company? Correct Answer-
yes
do you have voting rights if you hold an ADR? Correct Answer-no
what are some things that fundamental analysts look for? Correct
Answer-fiscal policy, money supply, industry analysis, monetary policy,
interest rates, and the economic environment.
what type of risk does a zero coupon bond not have? Correct Answer-
reinvestment risk
what should be associated with OTC markets? Correct Answer-massive
market, trades government securities etc
, does a corporation have to pay a production tax? Correct Answer-no
what is an Alien Corporation? Correct Answer-incorporated in a country
other than the United States
what is a Foreign Corporation? Correct Answer-conducts business
outside of the state of its incorporation
what are examples of penalty free withdrawals from a traditional IRA?
Correct Answer-medical bills, tuition expenses, first time home
purchase, disability, beneficiary of deceased who previously held IRA
when can a short sale take place? Correct Answer-Only on an up-tick or
zero-uptick price movement
when you inherit a security what is your cost basis? Correct Answer-
when the death occurs the fair value of the security is your cost basis,
and it is always a long term gain
what is a way to combat the probate court process? Correct Answer-
setting up a trust
to determine a fair price to charge as a commission what should be
considered? Correct Answer-the type of security, current market price
