Which of the following would contain the conditions and agreements of an upcoming issue of bonds by a corporation quizlet?

Q: Which of the following would contain conditions and agreements of an upcoming issue of bonds by a corporation?

A bonds indenture would contain all of the agreement and conditions that apply to a corporate bond issue.

Q: Which of the following is an option strategy that limits risk limits profits and is on both sides of the market?

The bull put spreads is a strategy that collects option premium and limits risk at the same time.” They profit from both time decay and rising stock prices. A bull put spread is the strategy of choice when the forecast is for neutral to rising prices and there is a desire to limit risk.

Inhaltsverzeichnis Show

Which of the following would contain conditions and agreements of an upcoming issue of bonds by a corporation?
Which of the following would be paid last in terms of priority by a corporation?
In which of the following scenarios is diversification used most effectively to reduce risk in a portfolio?
Which of the following is an option strategy that limits risk limits profits and is on both sides of the market?

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One of your clients invested $75,000 in the fund. The worth of the client's investment has now fallen to $68,000. The client wishes to invest an additional $5,000 and wants to know what the sales charges will be on the $5,000 investment. Which is CORRECT regarding the charges to the client on the additional investment?

[A]The client will have to pay the 7% sales charge because the client is only investing $5,000 at this time.
[B]Because the client's investment is only worth $68,000 and the additional $5,000 does not push that value over $75,000, the client will have to pay 6%.
[C]The client will have to pay a sales charge of 5.5% because the original investment was $75,000 and the client wishes to invest an additional $5,000.
[D]Because the client's other investments at the firm are not known, there is no way to determine the sales charge.

[C]The client will have to pay a sales charge of 5.5% because the original investment was $75,000 and the client wishes to invest an additional $5,000.

When covering questions on "Breakpoints" and "Rights of Accumulation" it is very important to thoroughly read the full question. Under "Rights of Accumulation" regulations, an investment company may base charges on NAV plus additional investments, amount invested plus additional investment, or the higher of the two. Here, the "Rights of Accumulation" are based on "AMOUNTS INVESTED." Since the investor has put up $75,000 already, and intends to invest an additional $5,000, the investor would get the breakpoint rate of 5.5%, even though NAV plus the $5,000 is less than $75,000.

A broker/dealer firm has become insolvent. SIPC liquidation procedures have begun. Jill and Jack are married and each of them have individual accounts along with a joint account with each other at the firm. The following are their account balances: Jill's individual account has $275,000 in fully-paid securities Jack's individual account has $265,000 in fully-paid securities Jill and Jack's joint account has $475,000 in fully-paid securities What would SIPC cover in relation to these accounts?
[A]SIPC coverage would total $500,000 for the three accounts since the two parties are married.
[B]SIPC coverage would pay $275,000 for Jill's account, $265,000 for Jack's account, and $475,000 for the joint account.
[C]SIPC coverage would pay $1,500,000 in this case, because each account is insured for $500,000, regardless of the amount held when the broker/dealer firm became insolvent.
[D]SIPC would not cover any of these claims.

Which of the following would contain conditions and agreements of an upcoming issue of bonds by a corporation?

A bond's indenture would contain all of the agreement and conditions that apply to a corporate bond issue.

Which of the following would be paid last in terms of priority by a corporation?

Shareholders are often among the last party in terms of priority ranking in a liquidation. It is usual for creditors and debt holders to generally receive payment before shareholders during an insolvency process.

In which of the following scenarios is diversification used most effectively to reduce risk in a portfolio?

Diversification works best when assets are uncorrelated or negatively correlated with one another, so that as some parts of the portfolio fall, others rise.

Which of the following is an option strategy that limits risk limits profits and is on both sides of the market?

The bull put spreads is a strategy that “collects option premium and limits risk at the same time.” They profit from both time decay and rising stock prices. A bull put spread is the strategy of choice when the forecast is for neutral to rising prices and there is a desire to limit risk.