Question

36) A share of common stock in a firm represents an ownership interest in that firm and allows stockholders to A) vote. B) receive dividends. C) receive interest payments. D) only A and B of the above. 37) The Securities Acts of 1933 and 1934 established the S.E.C. to enforce which of the follow laws? A) Require firms to tell the public the truth about their businesses. B) Require brokers, dealers, and exchanges to treat investors fairly. C) To ensure that no investment ever loses money. D) All of the above are laws the S.E.C. enforces. E) A and B above are laws the S.E.C. enforces. 38) Which of the following reduces moral hazard for the mortgage borrower? A) Collateral nurments

Answer 1

36)

Equity shareholders has Voting right for decision making activities like appointment of selecting key members in the company, Delisting of stock from exchanges etc.and also receive dividend .

Hence answer is A and B (D)

37)

The securities act of 1933 and 1934 established the SEC to enforce to require firms to tell the truth about their business, That means each they should produce annual report on the financial numbers and company decisions,

SEC also enforce to require brokers, dealers and exchanges to treat investors fairly.

hence asnwer is A and B (E)