FINRA Series 7

A common stockholder in a corporation is generally entitled to which of the following rights?

1. AThe right to vote on major corporate matters such as the election of the board of directorsCorrecta
2. BA fixed dividend paid before any distribution to bondholders
3. CA guaranteed return of principal at a stated maturity date
4. DA senior claim on assets ahead of secured creditors in a liquidation

Por qué: Common stock carries voting rights, typically including election of directors and approval of major corporate actions. Dividends on common stock are never guaranteed, and common holders stand last in the liquidation priority, behind creditors and preferred holders.Securities Exchange Act of 1934

Under Regulation T, the initial margin requirement for a purchase of marginable common stock is currently:

1. A25% of the purchase price
2. B50% of the purchase priceCorrecta
3. C100% of the purchase price
4. D10% of the purchase price

Por qué: Regulation T, set by the Federal Reserve Board under the Securities Exchange Act of 1934, currently requires an initial margin deposit of 50% of the purchase price for marginable equity securities. The remaining amount may be borrowed from the broker-dealer through the margin account.Securities Exchange Act of 1934