SIE 187969123

when securities are bought and sold, ownership changes hands between the buyer and the seller

on the settlement date of the transaction

a stock currently has a market value of $75 per share. if a put option on the stock has an exercise price of $60, the put option is

out of the money

all of the following are types of direct participation programs except

retain distribution

the first investor to get paid in corporate liquidations are

secured debt

All of the following associated persons engaged in the investment banking and securities business are considered registered representatives except

someone who serves on the board of directors.

a customer who is bullish on ABC would most likely

buy ABC long

Your client, Randall Stephens, has been bearish on LMN stock and sold it short several months ago. He now believes the company is in a good position for a turnaround and wants to change his strategy on LMN. What should he do to implement his new strategy?

buy to close his existing positions and open a new long position in the stock.

when interest rates are falling, which bonds are most likely to expose holders to call risk?

callable bonds with higher coupons

which of the following records must be kept for 6 years?

customer ledger.

which of the following scenarios would not violate general standards regarding member firm communications

a recruitment advertisement promises substantial training to be delivered to incoming employees.

a registered representative is appointed the fiduciary for a trust account. which of the following is true?

investment decisions must be made in accordance with the prudent investor rule.

all of the following are taxable to the investor except

stock dividends

When making unsolicited cold calls to prospects, a registered representative must disclose all of the following to the individual called EXCEPT

the address of any securities issuers mentioned during the call.

if an officer of a bank with the authority to purchase and sell securities on behalf of the bank wants to purchase new issues, which of the following statements is true?

the officer may not purchase a new issue because he is considered a restricted person.

At shareholders' meetings, a mutual fund investor might be called upon to vote on any of the following information except

whether to sell a certain company's stock out of the portfolio and approval of the investment advisor's contract.