Bubba owns a subordinated debenture in a company that is liquidating.
When will he get paid?

• A.after the company pays its outstanding bills, but before paying bank loans
• B.after the bills are paid and the bank is paid, but before the preferred shareholders
• C.before the holders of secured debt
• D.after the shareholders of preferred stock

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In mid-September, Bubba sells one XYZ February 50 call at $6. It subsequently expires without being exercised.
How is the premium taxed?

• A.Bubba's cost of the underlying stock is reduced
• B.the $600 premium is a capital gain
• C.the $600 premium constitutes ordinary income
• D.the $600 premium is rolled over into another XYZ call with the next longest expiration date

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Which of the following does not decrease basis?

• A.cash or property paid out
• B.depletion of real property
• C.losses
• D.income from extraordinary sources

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A stock with a current P/E of 17 is selling at $74.50 per share.
What are the company's earnings in the trailing 12 months?

• A.about $4.28
• B.$6.20
• C.$1.70
• D.impossible to calculate from this information

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A four-letter symbol assigned to an issue is characteristic of an equity security that is:

• A.authorized for inclusion in the NASDAQ system
• B.listed on the NYSE
• C.admitted to unlisted trading privileges on a regional stock exchange
• D.trading in less than 100-share units on the American Stock Exchange

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