lending the fund’s securities to banks or broker/dealers. This practice is not permitted under federal law.

underpriced and should rise quickly. The parity price for the common stock is about $49.38 - determined as:50 / 47.50 = 1.053 52 / 1.053 = 49.38 Since the common stock is trading at 51, the preferred is underpriced.

the tax collector. Taxes always have preference over any other creditors.

fill or kill. This type of order is cancelled if the entire amount cannot be executed.

cash flow and depletion allowance. The other choices are not applicable because an “income” partnership already has a producing well.

take no action as a result of the tax increase. Excise taxes normally are not important to the typical investor. They generally have little relative effect on securities prices.

0. Options do not have loan value, except for long-term LEAPS.

$98,062.50. The financial institution receives the bid price, which is 98 and 2 / 32. Two thirty-seconds is $0.625. The 98 is the percentage of a $1,000 bond. Multiplying 98% by $1,000 results in $980. Add $0.625 to $980 to arrive at $980.625 per bond. But …there are 100 bonds. So, multiplying $980.625 by 100 equals $98,062.50.

21,000. The underwriter is permitted to retain 70% of the 30,000 shares. The remaining 9,000 shares are kept in the pot by the manager.

the management group. The management group is actually comprised of the management company (including the underwriter) and the investment advisor.