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NEW QUESTION: 1
Which of the following is not one of the purposes of FINRA as stated in its articles of incorporation?
A. develop lines of communication between the securities industry and governmental agencies
B. police members and assist with dispute settlements
C. encourage members to uphold high ethical standards
D. maintain a fair and orderly securities market
Answer: D
Explanation:
FINRA's articles of incorporation does not state that one of FINRA's purposes is to maintain
a fair and orderly securities market. All the other selections are stated purposes. The articles of
incorporation also state that FINRA has the power to write and enforce rules for its members to promote
fair practices.

NEW QUESTION: 2
Bubba holds 200 shares of common stock in a utility company and receives rights to subscribe to an additional 100 shares at $20. The utility company is raising $40 million of new capital.
How many shares of common stock for the utility company were outstanding prior to the rights offering?
A. 2,000,000
B. 1,000,000
C. 4,000,000
D. 40,000,000
Answer: C
Explanation:
Explanation/Reference:
Explanation: 4,000,000. Bubba owns 200 shares and receives rights for 100 more. The basis for the rights offering is therefore one new share for each two shares outstanding. The utility company is raising $40 million by selling shares at $20. Therefore, the company is selling 2,000,000 new shares. Since the ratio of existing shares to new shares is 2 to 1, there must be 4,000,000 presently outstanding shares.

NEW QUESTION: 3
For each of the following statements, select Yes if the statement is true. Otherwise, select No.
NOTE: Each correct selection is worth one point.

Answer:
Explanation:

Explanation