Do common stock holders have to right to inspect all books of a company? - answerNo, only certain items suchs as the income statement and balance sheet Order of asset distribution - answerTaxes Secured debt Unsecured debt Preferred stock holders Common stock holders What type of corporate security is considered the riskiest? - answerCommon stock Of all securities, common stock has historically - answerProvided the best hedge against inflation, best capital appreciation potential Classifications of marginals securities - answerRegistered securities, OTC securities, Regulation T - answerRegarding extension of credit to customers...requires that payment for purchases of securities be received by the 4th business day after the trade (T+4) On what IRS form are gains and losses from securities reported on? - answer1099b Who must approve stock splits - answerCommon share holders must vote to approve a stock split. The split must also be approved by the board Warrants - answerLong-term option to buy stock. Typically issued with an IPO to make investors more interested. Gives IPO investors the right to buy more shares of the company at a set price for x number of years. Can be traded Premium = s-x Preemptive rights - answerShort-term Rights granted to existing shareholders that entitle shareholders to purchase newly issued shares of a corporation's stock, equal in percentage to shares already held, before the stock is offered to outside buyers. Rights can be sold and expire. Max maturity = 90 days If rights are exercised, proportion of ownership remains the same. Outstanding shares/new shares = # of rights to buy 1 share DERP - answerDeclaration Ex-date Record date Payable date Serial bonds - answerSeries of bonds with one issue date and varying/staggered maturities Balloon maturity - answerA type of maturity schedule for an issue of bonds that shows a relatively small number of bonds maturing serially (each year) and a large number maturing in a later year Current yiels - answerAnnual coupon$/current mkt price$ YTM > coupon - answerBond trades at discount YTM < coupon xss=removed xss=removed>