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NEW QUESTION 45
Which of the following would not normally be a function of an investment banker?
- A. assisting in large secondary offerings of securities
- B. providing long-term capital needs to client companies
- C. underwriting new issues of securities
- D. providing short-term capital needs to client companies
Answer: D
Explanation:
Explanation/Reference:
Explanation: providing short-term capital needs to client companies. The short-term capital needs of companies are normally the function of commercial bankers, not investment bankers.
NEW QUESTION 46
Municipalities are most likely to issue notes for which of the following purposes?
- A. short-term cash needs
- B. repairs to infrastructure
- C. long-term financing
- D. federal income tax payments
Answer: A
Explanation:
short-term cash needs. Notes are generally used for short-term needs.
NEW QUESTION 47
Convertible preferred stock has all of the following characteristics except:
- A. required dividend payments to shareholders before any dividends are paid to holders of common stock
- B. a requirement for shareholders to always accept the call price when called
- C. a lower dividend rate than non-convertible preferred
- D. a dilution of earnings if converted into common stock
Answer: B
Explanation:
a requirement for shareholders to always accept the call price when called. All of the other statements are true "except" this one. Convertible preferred shareholders have a n opportunity to convert to common stock. There is no forced call price.
NEW QUESTION 48
Which of the following is not provided for by Blue Sky laws?
- A. registration of securities dealers
- B. registration of securities offered in the state
- C. interstate mail fraud in securities offerings
- D. registration of representatives
Answer: C
Explanation:
interstate mail fraud in securities offerings. Blue Sky laws are state security laws and do not cover interstate regulations.
NEW QUESTION 49
In which of the following is not a case where a deed to a condominium qualifies as a security?
- A. there is management by someone other than the owner
- B. there is a time and space rental pool
- C. the seller intends to profit
- D. there is a 14-day owner usage provision
Answer: D
Explanation:
there is a 14-day owner usage provision. This provision is unrelated to qualification as a security.
NEW QUESTION 50
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