Iliana owns 1,000 participating preferred shares in the First Canadian Bank. Which of the following features are characteristic of her investment?
A.
Iliana has the right to purchase more preferred shares in the company before common
shareholders.
B.
Iliana is able to vote at the annual general meeting and elect members of the board of directors.
C.
Iliana can convert her preferred shares to common shares at a fixed price and within a specified
time period
D.
Iliana has a right to share in the bank's net profits over and above the specified dividend rate
Correct Answer: D
Explanation not available for this question.
Question #7 (Topic: Demo Questions)
Yesterday, Mariana purchased mutual funds for the first time from Diablo, who is a Dealing Representative for Horizon Financial. When Mariana mentions to her friend Marcus that she just started to invest, Marcus confides that he experienced losses from mutual fund investing. Her initial feelings of excitement have now changed to worry and regret. She wished she had talked to her friend before investing and wonders if she can change her mind. Which statement regarding the right of withdrawal applies?
A.
The right of withdrawal is based on the securities act legislation within the jurisdiction the
purchase occurred.
B.
Before Mariana can cancel her order, she must wait two business days to pass before she can
cancel her order
C.
How the right of withdrawal can be applied is determined by the Mutual Fund Dealers Association of Canada's conduct rules.
D.
The Canadian Securities Administrators have instituted national instruments regarding Mariana's
right to cancel her order.
Correct Answer: A
Explanation not available for this question.
Question #8 (Topic: Demo Questions)
Xian-Li believes she is a sophisticated investor. She has constructed her own portfolio and has had
some success. She does not believe in studying a company’s details such as earnings, expenses, or assets. She is more concerned with patterns in a company’s stock price over time. She believes patterns form and can be used to predict future movements in the market. How does Xian-Li evaluate the companies in her portfolio?