Equity Securities BOARD EVALUATION 2026 GUARANTEED PASS ANSWERS GRADED A+

Equity Securities CERTIFICATION PAPER
2026 FULL SOLUTION GRADED A+

● Issuer. Answer: Entity that creates and sells securities to raise capital


● Primary market. Answer: Market where securities are sold for the first
time (IPO, new issues)


● Secondary market. Answer: Market where existing securities are
traded between investors


● Public offering. Answer: Sale of securities to the general public


● Private placement. Answer: Sale of securities to a limited number of
qualified investors


● Underwriter. Answer: Investment bank that helps issue and distribute
new securities


● Broker-dealer (BD). Answer: Firm in the business of buying and
selling securities for clients or its own account

, ● Common stock. Answer: Equity security representing ownership in a
corporation


● Shareholder. Answer: Owner of common stock


● Voting rights. Answer: Right of shareholders to vote on corporate
matters


● Proxy. Answer: Authorization allowing someone else to vote a
shareholder's shares


● Capital appreciation. Answer: Increase in stock value over time


● Dividends. Answer: Distribution of company earnings to shareholders


● Residual claim. Answer: Common shareholders are paid last in
liquidation


● Limited liability. Answer: Shareholders can only lose the amount
invested


● Par value. Answer: Nominal value of a stock with no market
relevance