Equity Securities CERTIFICATION PAPER 2026 FULL SOLUTION GRADED A+

Equity Securities BOARD EVALUATION
2026 GUARANTEED PASS ANSWERS
GRADED A+

● Are Securities. Answer: Stocks and other equity securities
Bonds and other debt securities
Mutual funds
Limited partnerships
Options
Municipal backed securities


● Are Not Securities. Answer: Commodities (oil, orange juice, pork
bellies,etc.)
Precious metals (gold, silver, etc.)
Currency (actual money, both US and foreign)
Futures (derivatives of commodities, precious metals and currency)
A personal residence


● The 2 Basic Securities. Answer: Stocks and Bonds

, ● Stocks. Answer: represents equity, which means that the investor
holding the security has an ownership interest in something (usually
corporation)


● Another Term for Stock. Answer: Equity


● Bonds. Answer: represents debt, investor is owed something (usually
money), and the person that owes (debtor) will have to pay according to
the terms


● Another Term for Bond. Answer: Debt


● Common Stock Can Be Classified As. Answer: authorized,
issued,
outstanding, or
treasury.


● Authorized Stock. Answer: number of shares a corporation's charter
allows it to sell


● Issued Stock. Answer: Authorized stock that has been sold to
investors. Those investors have bought the stock, and the company has
received the money.