The following information has been reported for ABC stock:ĭividend payout ratio = annual dividend / EPSĭP Ratio = 2 /5 = 0.40 A website maintained by a fund company shows that one of the company's mutual funds currently has an NAV of $9.50 and a POP of $10 per share. she should consider leaving the day order entered for the remainder of the day, and if left unexecuted, should enter a GTC order in the morning so that her existing day order would not lose its priority before today's close. This is a good strategy, but order replacements must be verified in writing by the customer. She should consider entering another day order tomorrow morning because day orders have preference in execution over GTC orders. The mandatory service charge for canceling and replacing imposed by all exchanges makes this order replacement strategy too costly to be of benefit. She should consider leaving the day order entered for the remainder of the day, and if left unexecuted, should enter a GTC order in the morning so that her existing day order would not lose its priority before today's close. An hour before the market closes she calls you and says that she is considering changing the order to a GTC order. A customer has entered a day order to buy XYZ at 31.50. With spreads, I always know exactly how much I can lose or gain once the position is established. If a position, whether long or short, begins to move against me, I can always close it out in the market. No spread can ever have an unlimited maximum loss potential. With a time or horizontal spread, both options expire at the same time which means the position expires completely. Which of the following statements should you correct her on because it is NOT true? 150,000 One of your customers is speaking to you about spread strategies for equity options and makes several statements about spreads. Under Rule 144, the maximum number of shares the affiliate may sell over the next 3 months is:Ġ. There are 12.5 million shares outstanding, and, on average, 30,000 shares have traded each week over the past 4 weeks. An affiliate of the issuer has held 150,000 shares of restricted stock for 18 months. Guaranteed bonds are secured debt instruments. Income bonds are unsecured debt instruments. Which of the following statements is NOT true?ĭebentures are unsecured debt instruments.Įquipment trust certificates are secured debt instruments. A new registered representative makes several statements about corporate debt securities.
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