FBLA SECURITIES AND INVESTMENTS EXAM ACTUAL
QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED LATEST UPDATE GRADED A+ 2026/2027
Common stock the most "junior security" because it ranks last
in line at liquidation. An equity or ownership
position that usually allows the owner to
vote on major corporate issues such as
stock splits, mergers, acquisitions,
authorizing more shares, etc.
Transfer agent issues and redeems certificates. Handles name
changes, validates mutilated
certificates. Distributes dividends, gains, and
and shareholder reports to mutual fund
investors.
registrar audits the transfer agent to make sure the
number of authorized shares is never
exceeded
dividends money paid from profits to holders of common
and preferred stock whenever the Board of
, Directors is feeling especially generous
Declaration date the date the Board of Directors declares a
dividend
Record date the date determined by the Board of Directors
upon which the investor must be the "holder
of record" in order to receive the upcoming
dividend. Settlement of a trade must occur
by the record date for the buyer to
receive the dividend
payable date the date that the dividend check is paid to
investors
regular way settlement T + 3, trade plus three business days. T + 1 for
Treasury securities
T+ 3 regular way settlement, trade date plus three
business days
Ex-Date two days before the Record Date of
corporate stock. The date upon which the
buyer is not entitled to the upcoming
dividend. Note that for mutual funds, this
date is established by the Board of
Directors, usually the day after the Record
, Date
Pre-emptive right the right of common stockholders to maintain
their proportional ownership if the company
offers more shares of stock
subscription right the securities used in additional offerings of
stock to purchase available shares, usually
at a slight discount
warrant long term equity securities giving the owner
the right to purchase stock at a set price.
OFten attached as a "sweetener" that makes
the other security more
attractive
currency exchange risk the risk that the value of the U.S. dollar
versus another currency will have a
negative impact on businesses and
investors.
option a derivative giving the holder the right to buy
or sell something for a stated price up to
expiration of the contract. Puts and calls
bullish an investor who takes a position based
on the belief that the market or a
QUESTIONS AND ANSWERS WITH COMPLETE SOLUTIONS
VERIFIED LATEST UPDATE GRADED A+ 2026/2027
Common stock the most "junior security" because it ranks last
in line at liquidation. An equity or ownership
position that usually allows the owner to
vote on major corporate issues such as
stock splits, mergers, acquisitions,
authorizing more shares, etc.
Transfer agent issues and redeems certificates. Handles name
changes, validates mutilated
certificates. Distributes dividends, gains, and
and shareholder reports to mutual fund
investors.
registrar audits the transfer agent to make sure the
number of authorized shares is never
exceeded
dividends money paid from profits to holders of common
and preferred stock whenever the Board of
, Directors is feeling especially generous
Declaration date the date the Board of Directors declares a
dividend
Record date the date determined by the Board of Directors
upon which the investor must be the "holder
of record" in order to receive the upcoming
dividend. Settlement of a trade must occur
by the record date for the buyer to
receive the dividend
payable date the date that the dividend check is paid to
investors
regular way settlement T + 3, trade plus three business days. T + 1 for
Treasury securities
T+ 3 regular way settlement, trade date plus three
business days
Ex-Date two days before the Record Date of
corporate stock. The date upon which the
buyer is not entitled to the upcoming
dividend. Note that for mutual funds, this
date is established by the Board of
Directors, usually the day after the Record
, Date
Pre-emptive right the right of common stockholders to maintain
their proportional ownership if the company
offers more shares of stock
subscription right the securities used in additional offerings of
stock to purchase available shares, usually
at a slight discount
warrant long term equity securities giving the owner
the right to purchase stock at a set price.
OFten attached as a "sweetener" that makes
the other security more
attractive
currency exchange risk the risk that the value of the U.S. dollar
versus another currency will have a
negative impact on businesses and
investors.
option a derivative giving the holder the right to buy
or sell something for a stated price up to
expiration of the contract. Puts and calls
bullish an investor who takes a position based
on the belief that the market or a
