What is the best definition of a Collateral Trust Bond? (Kaplan p. 54/55)

Issued by corporations owning securities of other companies

All of the following are characteristics of Zero Coupon Bonds EXCEPT

Offers cash interest payments to the holder

What is the best definition of book value (per share)?

a measure of the net worth of each share of common stock

What other celebration/ritual happens on Oct 31?

Diwali, Reformation Day, Samhain, Dia de los Muertos

What does SEC stand for?

Securities and Exchange Commission

What formula can be used to calculate "dividend yield"

annual dividend/current market value of stock = div yield

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Series 6 Exam Review - Unit 1

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All of the following questions are based on Unit 1 - Securities Markets & Investment Securities of Kaplan's Series 6, Securities Exam Manual

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Questions 14

Answers

1
How much did Americans spend on Halloween last year (2023)?
12.2 Million
12.2 Billion
Not Enough
Too Much
2
What is the best definition of a Collateral Trust Bond? (Kaplan p. 54/55)
Issued by a municipality for the benefit of private sector
Issued by corporations owning securities of other companies
A bond used to finance any municipal facility
Bond that have many mortgages combined together
3
All of the following are characteristics of Zero Coupon Bonds EXCEPT
Prices fluctuate widely and change with interest rates
Offers investors a way to speculate on interest rate moves
requires a relatively small investment
Offers cash interest payments to the holder
4
These securities are created from pools of mortgages.
ABS
FHA
GSEs
CMOs
5
What is the best definition of book value (per share)?
how much a bond would be worth if it was kept until maturity
a measure of the net worth of each share of common stock
a security sold without delivery of certificate
the dollar amount a broker-dealer assigns to a security
6
A "round lot" is... (p.23)
1,000
always greater than 100
divisible by 100
exactly 100
7
What other celebration/ritual happens on Oct 31?
Diwali
Reformation Day
Samhain
Dia de los Muertos
8
The state of a convertible bond when its price equals the market price of the underlying stock
leverage
market price
parity
par
9
With this type of bond, interest is added monthly & is paid when the bond is redeemed (p. 48)
Treasury Bonds and funds
Series I bonds
Series EE bonds
Series HH bonds
10
Why did women look in mirrors while walking downstairs at midnight on Halloween?
So they wouldn't trip
To confirm their look is on point!
To show the spirits they are unafraid.
To see their boyfriends.
11
This type of stock has no special features beyond the stated dividend payment... (Kaplan p. 18)
cumulative preferred
participating preferred
common stock
straight preferred
12
What does SEC stand for?
Securities Exchange Act of 1934
Securities and Exchange Commission
Southeastern Conference
Securities Exchanges Changing
13
The FRB uses all of the following except _________ to affect the money supply (p. 68-70)
changes in reserve requirements
raising and lowering tax rates
changes of the discount rate
open market operations
14
What formula can be used to calculate "dividend yield"
annual dividend/current market value of stock = div yield
net assets/shares outstanding = dividend yield
current market price - POP = dividend yield
fund expenses / avg. net assets = expense ratio

Series 6 Exam Review - Unit 1 Flashcards | StudBud