Study with Quizlet and memorize flashcards containing terms like Which is an assumption of fundamental accounting principles?, Which of the balance sheet items generally takes the longest time to convert to cash?, Which would appear as part of equity on a company's balance sheet? and more.
It can be reissued under stock option and other employee benefit plans. It increases the net worth of the company. It lowers the value of the company.
The call premium of 3 points ($30 per bond) refers to the amount above par value which the issuer must pay the owner of the bond when the bond is called.
Treasury stock is stock that has been issued and was outstanding but has been repurchased by the company. Treasury stock does not have voting rights nor the right to receive dividends.
Long-term bond prices are more volatile than short-term bond prices. Discount bond prices are more volatile than premium bond prices. If the investor expects interest rates (yields) to decline, she is anticipating rising bond prices. The bonds that will rise (fluctuate) the most are long-term, discount bonds.
Nonqualified deferred compensation plans are often unfunded, meaning the employer does not actually set aside money to fund the promised plan benefits. The employer promises to pay the plan benefits when they are due to the employee, usually at retirement. This creates the risk that if the employer is in financial difficulty when the payments should be made, the employee might not receive them.
The key to this question is to identify the number of retail investors (existing and/or prospective) who are receiving the communication. In this question, the 20 retail clients plus the 20 guests equals a total of 40 retail investors. Since the total number of retail investors is more than 25, FINRA considers the sales script to be retail communication. If the number of retail investors receiving the material was 25 or fewer, the communication would be considered correspondence.
Deferred compensation is a discriminatory type of benefit normally reserved for the upper management or big producers in a company.
Preferred stock, unlike common stock, generally does NOT have voting rights. Common stockholders, therefore, control the corporation through the board of directors. Common stock generally provides an opportunity for an investment to appreciate, whereas preferred shares are more likely to receive income in the form of a dividend.
As long as the customer's name is on file with the broker-dealer, the account may be identified by number in all other broker-dealer records.
Definition Is a nominal, arbitrary amount applied to shares of stock; unrelated to actual stock value or price.
Dividends are declared by board of directors.
Premium on stock issuance is recognized as income/profit.
Treasury stock is stock that has been issued and was outstanding but has been repurchased by the company. Treasury stock does not have voting rights nor the right to receive dividends.
Long-term bond prices are more volatile than short-term bond prices. Discount bond prices are more volatile than premium bond prices. If the investor expects interest rates (yields) to decline, she is anticipating rising bond prices. The bonds that will rise (fluctuate) the most are long-term, discount bonds.
Nonqualified deferred compensation plans are often unfunded, meaning the employer does not actually set aside money to fund the promised plan benefits. The employer promises to pay the plan benefits when they are due to the employee, usually at retirement. This creates the risk that if the employer is in financial difficulty when the payments should be made, the employee might not receive them.
The key to this question is to identify the number of retail investors (existing and/or prospective) who are receiving the communication. In this question, the 20 retail clients plus the 20 guests equals a total of 40 retail investors. Since the total number of retail investors is more than 25, FINRA considers the sales script to be retail communication. If the number of retail investors receiving the material was 25 or fewer, the communication would be considered correspondence.
Deferred compensation is a discriminatory type of benefit normally reserved for the upper management or big producers in a company.
Preferred stock, unlike common stock, generally does NOT have voting rights. Common stockholders, therefore, control the corporation through the board of directors. Common stock generally provides an opportunity for an investment to appreciate, whereas preferred shares are more likely to receive income in the form of a dividend.
As long as the customer's name is on file with the broker-dealer, the account may be identified by number in all other broker-dealer records.