Finra Exam Series-6 Topic 1 Question 68 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 68
Topic #: 1

Mr. Investor has purchased 100 shares of the common stock of the Everyman Corporation. As such, which of the following is not a right that Mr. Investor has?

Athe right to receive dividends, if declared

Bthe right to vote on the members of Everyman's board of directors

Cthe right to vote on any proposed changes to the corporate bylaws

Dthe right to vote on the purchase of a major piece of property that Everyman is considering

Show Suggested Answer

Suggested Answer: A

Among other things, the trade confirmation that Anna receives must stipulate the items described in Selections I and III only. The trade confirmation that Anna receives from GetErDone must stipulate the time and date of the transaction, the number of shares sold, and the price at which they were sold. The exchange or ECN on which the transaction was executed is not provided on the confirmation statement. Whether GetErDone acted as a principal or a broker in the transaction does need to be stipulated, but in this instance GetErDone acted as a broker, not a principal. GetErDone did not itself buy the shares from Anna.

by Willard at Dec 10, 2023, 12:23 AM

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Sherita

4 days ago

Option D, no doubt. Shareholders don't need to be micromanaging the company's every move. That's what the board of directors is for!

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Gerri

7 days ago

I'm not sure about this question, but I think C) the right to vote on any proposed changes to the corporate bylaws is also not a right that Mr. Investor has.

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Maryann

8 days ago

I agree with Nikita, because as a common stockholder, Mr. Investor does not have the right to vote on major decisions like property purchases.

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Nikita

10 days ago

I think the answer is D) the right to vote on the purchase of a major piece of property.

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Paola

10 days ago

Hmm, this one's tricky. I'm tempted to say Option C, but I think Option D is the best choice here.

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Anna

12 days ago

I agree, the shareholders don't get a say in every little thing the company does. That would just be chaos! Option D is the way to go.

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Glennis

13 days ago

I'm not sure, but I think it's C. Shareholders usually have a say in changes to the bylaws.

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Minna

16 days ago

I agree with Kiley. Shareholders don't typically vote on specific property purchases.

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Lauran

18 days ago

Option D is clearly the correct answer. As a shareholder, Mr. Investor doesn't have the right to vote on day-to-day business decisions like purchasing property.

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Lelia

3 days ago

A) the right to receive dividends, if declared

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Kiley

22 days ago

I think the answer is D.

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