SIE Exam Practice Question 501
Question: 501
An investor buys 100 shares of XYZ 7% convertible preferred stock which are convertible into XYZ common stock at $20 per share. How many shares of common stock are there upon conversion?
Correct Answer: B
Explanation:
B: First you must determine the number of shares. Par / conversion price = 100 / 20 = 5, multiplied by the number of preferred shares: 5 × 100 = 500.
More Tests
- SIE Exam Practice Test 1
- SIE Exam Practice Test 2
- SIE Exam Practice Test 3
- SIE Exam Practice Test 4
- SIE Exam Practice Test 5
- SIE Exam Practice Test 6
- SIE Exam Practice Test 7
- SIE Exam Practice Test 8
- SIE Exam Practice Test 9
- SIE Exam Practice Test 10
- SIE Exam Practice Test 11
- SIE Exam Practice Test 12
- SIE Exam Practice Test 13
- SIE Exam Practice Test 14
- SIE Exam Practice Test 15
- SIE Exam Practice Test 16
- SIE Exam Practice Test 17
- SIE Exam Practice Test 18
- SIE Exam Practice Test 19
- SIE Exam Practice Test 20