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FINRA Updated Series-7 Exam Questions and Answers by marlow

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FINRA Series-7 Exam Overview :

Exam Name: Series 7 General Securities Representative Qualification Examination (GS)
Exam Code: Series-7 Dumps
Vendor: FINRA Certification: General Securities Representative
Questions: 400 Q&A's Shared By: marlow
Question 68

A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of common stock. If it already has six million shares outstanding at the time of the offering.

How many rights will the corporation distribute to its shareholders?

Options:

A.

one million

B.

six million

C.

ten million

D.

sixteen million

Discussion
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Question 69

A case of leverage is:

Options:

A.

selling common stock short and buying warrants for the equivalent number of shares followed by subscribing to the shares and covering the short

B.

borrowing at 6% and investing the funds at 10%

C.

buying stock on the NYSE and later selling it the same day on the CBOE

D.

redeeming a convertible bond before maturity

Discussion
Question 70

Bubba buys one XYZ September 50 call at $7 and sells one XYZ September 60 call at $3. At that time, XYZ stock is at $55. Bubba has no other stock positions. At what must XYZ trade for Bubba to break even?

Options:

A.

$54

B.

$55

C.

$57

D.

$60

Discussion
Question 71

A CMO is issued that has three tranches. One has an average life of 2 years. A second has an average life of 10 years. The third has an average life of 30 years. Initially, interest payments are distributed in this order:

Options:

A.

first to the holders of the 2-year tranche

B.

first to the holders of the 10-year tranche

C.

first to the holders of the 30-year tranche

D.

equally to all CMO holders of any tranche

Discussion
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