The business cycle has four distinct stages: expansion, peak, contraction, and trough.

A company may pay a dividend in any of the ways listed. A company may pay a dividend in cash, product shares of its own stock or stock of a subsidiary.

If the shareholders vote and approve an increase in the number of authorized shares, then more stock may be issued.

In order to terminate a representative’s association with a member, that member must fill out and submit a U-5 to FINRA.

If a company is in financial difficulty and cannot pay dividends for a year or two, the straight preferred stockholder is owed nothing, while the cumulative stockholder is owed arrears, before the common stockholders are paid anything.

The federal funds rate is what banks charge each other for overnight loans. Choice A describes the discount rate; Choice B describes the prime rate; Choice D describes the broker call loan rate.

The SEC disclaimer specifically states that they do not endorse or guarantee anything that relates to the issuer or its securities. When the SEC ends the cooling off period by granting the issuer an effective date it is because they have received all the necessary documentation from the issuer.

Credit risk is the risk of default, which only relates to fixed income securities. This is the risk that the issuer does not pay interest or principal on time.

Warrants represent long term opportunities to buy stock at a fixed price, and do not pay dividends. All other securities listed potentially pay dividends.

The number of employment ads is viewed as a leading indicator which will predict a change in the economy. The duration of unemployment claims is considered a lagging indicator, a result of a change in the economy.