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Finra Series-7 Exam - Topic 2 Question 64 Discussion

Posted by Lisha on Jan 06, 2023 at 06:14 PM

An advertisement for a CMO security by a member of FINRA should disclose which of the following?

Suggested Answer: A

$0.45. Since treasury stock does not receive dividends, divide $450,000 by the outstanding 100,000 shares to arrive at $0.45 per share.


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34 comments · newest first
SU
Sunshine 12 months ago
D is just confusing. Yields can’t magically be more than stated, right?
ST
Stephaine 1 year ago
Wait, are we really saying yields can vary that much? Sounds fishy!
EZ
Ezekiel 1 year ago
B makes sense too, but C covers the variability better.
KY
Kyoko 1 year ago
I think A is misleading. No one can guarantee exact yields.
VA
Valda 1 year ago
C is definitely the right choice. It's all about transparency!
ER
Erick 1 year ago
I’m a bit confused about B; it talks about the prevailing discount rate, but I don’t think that’s what they need to disclose specifically.
ME
Melodie 1 year ago
I feel like I’ve seen a question like this before, and it emphasized the importance of transparency about estimates, which makes me lean towards C as well.
EV
Evette 1 year ago
I’m not entirely sure, but I remember something about not guaranteeing exact yields, so maybe it’s not A or D?
ME
Meaghan 1 year ago
I think the answer might be C, since it mentions that the yield can vary due to prepayments and market factors, which seems important to disclose.
JE
Jennie 1 year ago
I've seen this type of question before. The key is to remember that the search head needs to be able to communicate with all the other Splunk components, so A is likely the correct answer.
PA
Paris 1 year ago
Hmm, I'm not sure. Shouldn't we check if the new GPU meets the hardware compatibility guidelines first? That seems like an important step.
HA
Hassie 1 year ago
Okay, let me think this through. The population is the entire collection of elements we're interested in studying, so that seems like the most logical answer here. I'll go with A.
MA
Marquetta 1 year ago
Okay, I think I've got a handle on this. The CFO's analysis referenced the static trade-off theory and the impact of leverage on agency costs. Based on the information provided, it seems like his statements on those topics were accurate. The real issue appears to be with the board's decision to go against his recommendation. I'll focus on evaluating the CFO's analysis rather than the board's actions.
AN
Anglea 2 years ago
Option C is the way to go. Gotta love those 'may vary' disclosures - keeps the regulators happy and the investors on their toes!
CH
Chi 1 year ago
↳ replying to Anglea
Absolutely, disclosing potential variations in yield is crucial for compliance.
SH
Shenika 1 year ago
↳ replying to Anglea
Yeah, it's always better to be transparent with investors.
LI
Lisandra 2 years ago
↳ replying to Anglea
I agree, option C is definitely the safest choice.
PE
Pete 2 years ago
Option B is too vague. I want the details, not just a 'prevailing discount rate' that could change at any moment.
OD
Odelia 1 year ago
↳ replying to Pete
User 4: I think the advertisement should disclose that the yield is an estimate.
MI
Miriam 1 year ago
↳ replying to Pete
User 3: Option C seems like the best choice.
RU
Rusty 1 year ago
↳ replying to Pete
User 2: Yeah, I want more details too.
GI
Giuseppe 1 year ago
↳ replying to Pete
User 1: I agree, option B is too vague.
BA
Barrett 1 year ago
↳ replying to Pete
Dacia: That makes sense, option C provides more information than option B.
RO
Rolf 1 year ago
↳ replying to Pete
User 3: Yeah, option C mentions that the yield is an estimate that may vary based on different factors.
DA
Dacia 2 years ago
↳ replying to Pete
User 2: I think option C is the best choice.
CY
Cyndy 2 years ago
↳ replying to Pete
User 1: I agree, option B is too vague.
CH
Chantay 2 years ago
Haha, Option A is wishful thinking. No way they're going to disclose the 'exact' yield - that's just asking for trouble!
MO
Mozell 2 years ago
I'm going with Option D. Why not just state the maximum yield and let investors decide for themselves?
ST
Stephanie 2 years ago
Option C seems like the most comprehensive and accurate disclosure. Investors need to know the yield is just an estimate that can fluctuate.
ER
Eric 1 year ago
↳ replying to Stephanie
User 2: Definitely, investors need to be aware that the yield can vary based on different factors.
DE
Deeanna 2 years ago
↳ replying to Stephanie
User 1: I agree, option C is the most transparent choice.
AN
Annelle 2 years ago
I'm not sure, but I think it's important to be transparent about potential variations in yield.
BE
Bethanie 2 years ago
I agree with Rochell, it makes sense to disclose that the yield is an estimate.
RO
Rochell 2 years ago
I think the answer is C.
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