Bisys Series 6 Course

Front 1

What are the three types of business organizations?

Back 1

1.Individual Proprietor
2.General Partnership
3.Corporation

Front 2

The two basic ways that a corporation raises money is by debt securities and equity securities otherwise know as _______ and _________.

Back 2

Debt securities are known as Bonds. (Debt Capital)
Equity securities are known as Stocks. (Equity Capital)

Front 3

A unit of corporate ownership is know as a _________.

Back 3

Stock

Front 4

A corporation is subject to governmental control and operates under a ______ granted by the state. The Birth Certificate so to speak.

Back 4

The Charter

Front 5

Two Broad classes of stocks that a corporation may offer.

Back 5

1. Common Stock
2. Preferred Stock

Front 6

An absentee ballot is made available for those shareholders who vote by mail. What is this ballot called.

Back 6

A Proxy

Front 7

Being a stock holders gives you voting privileges. What type of voting privilage gives
you 300 votes per vacancy assuming you held 300 shares?

Back 7

Statutory (Regular) Voting

Front 8

You hold 300 shares of stock. there are three vacancies. You have 900 votes to place wherever you want. This is called ______
voting.

Back 8

Cumulative voting

Front 9

The shares of stock that the State permits with the original incorporation charters are known as ______________ shares.

Back 9

Authorized

Front 10

The portion of authorized stock that is actually sold to investors is called __________ shares .

Back 10

Issued

Front 11

That portion of authorized stock that has not yet been issued or sold is __________ shares.

Back 11

Unissued

Front 12

Issued shares currently in the hands of investors are known as ________ stock.

Back 12

Outstanding

Front 13

The total value of the shares of a company, which is determined moment by moment in the open market by multiplying the current price of shares of commom stock by the number of outstanding shares. This number indicates the ________ __________ of the company.

Back 13

Market capitalization

Front 14

Companys are generally categorized by Large Cap,Mid Cap and small cap. What are the values of each?

Back 14

Large Cap = exceeding 5 billion
Mid Cap= Between 1 billion and 5 billion
Small Cap = under 1 billion

Front 15

An absentee ballot is also known as a ____________.

Back 15

Proxy

Front 16

T/F Treasury Stock is issued stock but since it is no longer in the hands of investors it is not considered to be outstanding stock.

Back 16

True

Front 17

T/F Treasury stock does not vote
or receive dividends and is not considered to be outstanding stock.

Back 17

True

Front 18

T/F All Stock has a par value.

Back 18

False

Front 19

The method by which an investor usually purchases foreign corporate stock that simplifies the trading process by depositing the stock in an oversees bank and issuing an
__________ __________ _______.

Back 19

American Depositary Receipt
(ADR)

Front 20

A new offering of stock to current stock holders ate a price somewhat below the current
market price allows current stock holders to excercise their _______ ________.

Back 20

Pre-Emtive Rights

Front 21

A security issued by some corporations gving the holder a right to purchase new shares at a later date for a stupulated price. Usually attached to a bond as a sweetener.

Back 21

Warrant

Front 22

Contracts to buy 100 shares of stock are called _______ _____.
Contracts to sell 100 shares of stock are called ______ _____.

Back 22

Call Option


Put Option

Front 23

What is the most often used unit of trading?
What is it often refered to as?
Anything less would be refered to as?

Back 23

100 shares

A Round Lot

An Odd Lot

Front 24

When a corporation raises money privately, usually 1-35 large institutional investors is is known as _________ _________.

Back 24

Private Placements

Front 25

A Private Placement stock is known as a Restricted Stock. What makes it restricted?

Back 25

The stock owners sign an agreement and are restricted from selling their stock for at least 1 year in the open market place. Violators are Called Statutory Underwriters.

Front 26

T/F In a Stock Split, the number of outstanding stocks increased while the par value decreases.

Back 26

True

Front 27

When a corporation pays out a dividend in the form of more stock. this is called a ______
_______.

Back 27

Stock Dividend

Front 28

A type of Stock that pays a fixed dividend and has claims to dividends over common stockholders is known as ________ Stock.

Back 28

Preferred

Front 29

What are the three "C"s when refering to the special features of Preferred stock?

Back 29

Cummulative Dividend - missed dividends must be repaid.

Convertible - pref can be exchanged for common stock.

Callable - the corporation my call back the stock at a predetermind price.

Front 30

The institution, a bank, trust company, etc... who is responsible for the efficient transfer of securities from one owner to another is the _______ _________.

Back 30

Transfer Agent

Front 31

One special feature of some preferred stock is one where if a corporation's earnings decline drastically and is not able to pay dividends the company will pay the missed dividend in arrears is called a.

Back 31

cummulative preferred stock