Finra Exam Series-6 Topic 5 Question 89 Discussion

Actual exam question for Finra's Series-6 exam

Question #: 89
Topic #: 5

Which of the following is not a feature associated with an investment in preferred stock?

AThe dividend is typically a fixed amount.

BIf a dividend payment is skipped, it must typically be made up before common shareholders can receive any dividends.

CPreferred shareholders usually have the right to vote on members of the board of directors, mergers, and shareholder proposals.

DThe preferred stock may be convertible to common stock.

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Suggested Answer: D

The false statement regarding both a UGMA and a UTMA is that the assets must be re-registered in the minor child's name when the child turns 18. The rule differs between the two types of accounts. The UGMA requires that the assets must be re-registered when the child reaches the ''age of majority,'' as defined by the state, and the definition differs among states. Under the UTMA, the transfer of the account can be delayed until the minor child has reached the age of 25.

by Devorah at Sep 13, 2024, 01:53 PM

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C) Preferred shareholders usually have the right to vote on members of the board of directors, mergers, and shareholder proposals.

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