FBLA Securities and Investments
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Common stock - ANSWER ✔ 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.
2. Transfer agent - ANSWER ✔ issues and redeems certificates. Handles
name changes, validates mutilated certificates. Distributes dividends, gains,
and and shareholder reports to mutual fund investors.
3. registrar - ANSWER ✔ audits the transfer agent to make sure the number
of authorized shares is never exceeded
4. dividends - ANSWER ✔ money paid from profits to holders of common
and preferred stock whenever the Board of Directors is feeling especially
generous
5. Declaration date - ANSWER ✔ the date the Board of Directors declares a
dividend
6. Record date - ANSWER ✔ 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
,7. payable date - ANSWER ✔ the date that the dividend check is paid to
investors
8. regular way settlement - ANSWER ✔ T + 3, trade plus three business days.
T + 1 for Treasury securities
9. T + 3 - ANSWER ✔ regular way settlement, trade date plus three business
days
10.Ex-Date - ANSWER ✔ 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
11.sinking fund - ANSWER ✔ an escrow account earning safe little rates of
interest, established by corporations and municipalities to help with bond
rating, and to make sure the principal can actually be returned at maturity
12.secured bonds - ANSWER ✔ corporate bonds that are backed up by
specific assets, collateral
13.debenture - ANSWER ✔ a bond backed simply by the full faith and credit
of an issuer
14.subordinated debenture - ANSWER ✔ debentures that have a claim on
corporate assets that is below that of regular debentures when it comes to
liquidating a company and paying out money to the bondholders. Since these
bonds are riskier, they pay a higher coupon than debentures or secured bonds
15.claim on assets rank - ANSWER ✔ 1. Secured creditors
2. debentures/general creditors
3. subordinated debentures
4. preferred stock
5. common stock
,16.Adjustable-rate Mortgage (ARM) - ANSWER ✔ A mortage in which the
interest rate is raised or lowered from time to time depending on the current
interest rate being charged by lenders
17.Annual Percentage Yield (APY) - ANSWER ✔ The percentage rate equal
to the total amount of interest that a $100 deposit would earn based on a
365-day period
18.Appraiser - ANSWER ✔ Someone trained to estimate the value of property
and who can give an official report on the value
19.Appreciation - ANSWER ✔ A general increase in the value of property
that occurs over time
20.Assessed value - ANSWER ✔ The amount that your local government
determines your property to be worth for tax purposes
21.Bond - ANSWER ✔ A certificate representing a promise to pay a definite
amount of money at a stated interest rate on a specified date due
22.Capital Gain - ANSWER ✔ The result of a stock increasing in value and
then being sold for more than its original cost
23.Capital Loss - ANSWER ✔ The result of an investment being sold for less
than its original cost
24.Certificate of Deposit - ANSWER ✔ A savings instrument that requires a
minimum deposit for a specified period of time
25.Collectibles - ANSWER ✔ Items of personal interest to collectors that can
increase in value in the future
26.Commodoties - ANSWER ✔ Grain, livestock, and precious metals
27.Common Stock - ANSWER ✔ Stocks that represent general ownership in a
corporation and a right to share in its profits
, 28.Hazard - ANSWER ✔ A condition that creates or increases the chance,
frequency, severity loss
29.Physical Hazard - ANSWER ✔ Physical condition that increases the
frequency or severity of loss
30.Moral Hazard - ANSWER ✔ Dishonesty or character defects in an
individual that increase the frequency or severity of loss
31.Attitudinal Hazard (Morale Hazard) - ANSWER ✔ Carelessness or
indifference to a loss which increases the frequency or severity of a loss
32.Legal Hazard - ANSWER ✔ Characteristics of the legal system or
regulatory environment that increase the frequency or severity of losses.
33.Pure Risk - ANSWER ✔ Situations in which there are only the possibilities
of loss or no loss. (Only outcomes are adverse(loss) and neutral (no loss).)
34.Speculative Risk - ANSWER ✔ A situation in which either profit or loss is
possible
35.Diversifiable Risk - ANSWER ✔ A risk that affects only individuals or
small groups and not the entire economy
36.Nondiversifiable risk - ANSWER ✔ A risk that affects the entire economy
or large numbers of persons or groups within the economy.
37.Enterprise Risk - ANSWER ✔ Encompasses all major risks faced by a
firm. Includes pure, speculative, strategic, operational, and financial risk.
38.Operational Risk - ANSWER ✔ Results from the firm's business
operations
39.Financial Risk - ANSWER ✔ Refers to the uncertainty of loss because of
adverse changes in
- commodity prices
- interest rates
- foreign exchange rates
EXAM STUDY GUIDE 2026/2027
ACCURATE QUESTIONS WITH
CORRECT DETAILED SOLUTIONS ||
100% GUARANTEED PASS
<NEWEST VERSION>
1. Common stock - ANSWER ✔ 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.
2. Transfer agent - ANSWER ✔ issues and redeems certificates. Handles
name changes, validates mutilated certificates. Distributes dividends, gains,
and and shareholder reports to mutual fund investors.
3. registrar - ANSWER ✔ audits the transfer agent to make sure the number
of authorized shares is never exceeded
4. dividends - ANSWER ✔ money paid from profits to holders of common
and preferred stock whenever the Board of Directors is feeling especially
generous
5. Declaration date - ANSWER ✔ the date the Board of Directors declares a
dividend
6. Record date - ANSWER ✔ 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
,7. payable date - ANSWER ✔ the date that the dividend check is paid to
investors
8. regular way settlement - ANSWER ✔ T + 3, trade plus three business days.
T + 1 for Treasury securities
9. T + 3 - ANSWER ✔ regular way settlement, trade date plus three business
days
10.Ex-Date - ANSWER ✔ 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
11.sinking fund - ANSWER ✔ an escrow account earning safe little rates of
interest, established by corporations and municipalities to help with bond
rating, and to make sure the principal can actually be returned at maturity
12.secured bonds - ANSWER ✔ corporate bonds that are backed up by
specific assets, collateral
13.debenture - ANSWER ✔ a bond backed simply by the full faith and credit
of an issuer
14.subordinated debenture - ANSWER ✔ debentures that have a claim on
corporate assets that is below that of regular debentures when it comes to
liquidating a company and paying out money to the bondholders. Since these
bonds are riskier, they pay a higher coupon than debentures or secured bonds
15.claim on assets rank - ANSWER ✔ 1. Secured creditors
2. debentures/general creditors
3. subordinated debentures
4. preferred stock
5. common stock
,16.Adjustable-rate Mortgage (ARM) - ANSWER ✔ A mortage in which the
interest rate is raised or lowered from time to time depending on the current
interest rate being charged by lenders
17.Annual Percentage Yield (APY) - ANSWER ✔ The percentage rate equal
to the total amount of interest that a $100 deposit would earn based on a
365-day period
18.Appraiser - ANSWER ✔ Someone trained to estimate the value of property
and who can give an official report on the value
19.Appreciation - ANSWER ✔ A general increase in the value of property
that occurs over time
20.Assessed value - ANSWER ✔ The amount that your local government
determines your property to be worth for tax purposes
21.Bond - ANSWER ✔ A certificate representing a promise to pay a definite
amount of money at a stated interest rate on a specified date due
22.Capital Gain - ANSWER ✔ The result of a stock increasing in value and
then being sold for more than its original cost
23.Capital Loss - ANSWER ✔ The result of an investment being sold for less
than its original cost
24.Certificate of Deposit - ANSWER ✔ A savings instrument that requires a
minimum deposit for a specified period of time
25.Collectibles - ANSWER ✔ Items of personal interest to collectors that can
increase in value in the future
26.Commodoties - ANSWER ✔ Grain, livestock, and precious metals
27.Common Stock - ANSWER ✔ Stocks that represent general ownership in a
corporation and a right to share in its profits
, 28.Hazard - ANSWER ✔ A condition that creates or increases the chance,
frequency, severity loss
29.Physical Hazard - ANSWER ✔ Physical condition that increases the
frequency or severity of loss
30.Moral Hazard - ANSWER ✔ Dishonesty or character defects in an
individual that increase the frequency or severity of loss
31.Attitudinal Hazard (Morale Hazard) - ANSWER ✔ Carelessness or
indifference to a loss which increases the frequency or severity of a loss
32.Legal Hazard - ANSWER ✔ Characteristics of the legal system or
regulatory environment that increase the frequency or severity of losses.
33.Pure Risk - ANSWER ✔ Situations in which there are only the possibilities
of loss or no loss. (Only outcomes are adverse(loss) and neutral (no loss).)
34.Speculative Risk - ANSWER ✔ A situation in which either profit or loss is
possible
35.Diversifiable Risk - ANSWER ✔ A risk that affects only individuals or
small groups and not the entire economy
36.Nondiversifiable risk - ANSWER ✔ A risk that affects the entire economy
or large numbers of persons or groups within the economy.
37.Enterprise Risk - ANSWER ✔ Encompasses all major risks faced by a
firm. Includes pure, speculative, strategic, operational, and financial risk.
38.Operational Risk - ANSWER ✔ Results from the firm's business
operations
39.Financial Risk - ANSWER ✔ Refers to the uncertainty of loss because of
adverse changes in
- commodity prices
- interest rates
- foreign exchange rates
