SIE practice
in the event of a corporate bankruptcy, which of the following is true? A) a shareholder can be obligated to liquidate personal assets to meet the liabilities of the corporation B) shareholder has unlimited liability as an owner of the corporation C) shareholder's liability is limited to the amount invested when shares were invested D) shareholder can be required to rebate all dividends received during ownership to meet the liabilities of the corporation
C) shareholder's liability is limited to the amount invested when shares were purchased
all of the following statements about a bond selling above par, value are true except A) the yield to maturity is lower than the nominal yield B) the current yield is higher than the yield to maturity C) the nominal yield is lower than the current yield D) the nominal yield always stays the same
C) the nominal yield is lower than current yield nominal is fixed and stays same with all bonds - bonds selling above par is selling at premium so yield to maturity is lower than current yield, which is lower than nominal yield
if consumer prices are steadily dropping from month to month, this is known as what? A) stagflation B) deflation C) inflation D) disinflation
B) Deflation
Your client asks about exchange-traded notes (ETNs) for her portfolio, and during the course of the conversation, she makes several statements. Which of the following is true? A) ETNs are debt securities backed by the exchange they trade on B) ETNs are debt securities back by the issuer C) ETNs are equity securities backed by the exchange they trade on D) ETNs are equity securities backed by the issuer
B) ETNs are debt securities backed by the issuer
All registered persons must complete a computer-based training session within 120 days of the person's second registration anniversary and every three years thereafter to comply with A) both continuing education (CE) regulatory requirements B) FINRA's regulatory element regulation C) FINRA's firm element regulation D) the Uniform Securities Act state regulation requirements
B) FINRA's regulatory element regulation
a corporate stock transaction occurs regular way on Monday, August 3. ownership of the securities is recognized as changing hands between buyer and seller on A) Tuesday, aug 4 B) Wednesday, aug 5 C) Thursday, aug 6 D) trade date
B) Wednesday, aug 5
a company's net worth belongs to its owners (shareholders). the net worth for a company is computed as A) assets divided by liabilities B) assets less liabilities C) liabilities plus assets D) fixed assets less liabilities
B) assets less liabilities
An investor is looking to increase her purchase of put options. From this, you would surmise that the customer's market outlook is A) risk oriented B) bearish C) neutral D) bullish
B) bearish
the Sierra verde coffee company recently developed a new flavor, jasmine chili salted mocha. unfortunately, the coffee has a horrible taste and the company discontinues the flavor. the costs involved in bringing the new product to marked combined with the drop in sales and a repetitional hit have translated into significant drop in the price of the stock. this is an example of what type of risk? A) default risk B) business risk C) market risk D) interest rate risk
B) business risk
details surrounding a termination must be included with a form u-5 for all of the reasons below except A) discharged B) death C) other D) permitted to resign
B) death
Member Bank A wants to borrow from the Federal Reserve Bank's window. What would be the interest rate on this loan? A) prime rate B) discount rate C) zero percent, since members are prohibited from charging other members interest D) federal funds rate
B) discount rate
how long must a FINRA member firm maintain a file copy of a complaint? A) six years B) four years C) three years D) two years
B) four years
An investor owns a municipal bond fund. what is the tax status of distributions from the fund? A) both income and capital gains distributions are tax free B) income is tax free, but capital gains distributions are taxable C) both income and capital gains distributions are taxable D) income is taxable, but capital gains distributions are tax free
B) income is tax free but capital gains distributions are taxable
your customer receives a 10% stock dividend on 1,000 shares owned. regarding this dividend, you correctly explain that the position will do what? A) increase by 10 shares, but the price per share will be adjusted downward B) increase by 100 shares, but the price per share will be adjusted downward C) remain unchanged, but the price per share will increase by 10% D) increase by 10% as will the price per share
B) increase by 100 shares, but the price per share will be adjusted downward
Which of the following is an example of systematic risk? A) default risk B) interest rate risk C) call risk D) business risk
B) interest rate risk
when an investor wants to sell shares short, the first shares must be A) verified as being traded on a listed exchange B) located in order to be borrowed C) guaranteed by the SEC D) purchased in order to be sold
B) located in order to be borrowed
the first stage of money laundering is A) insertion B) placement C) layering D) integration
B) placement
The forward pricing rule applies to A) purchases and redemptions of the share B) purchases and redemptions of the shares of open-end investment companies C) purchases, but not redemptions, of the shares of open-end investment companies D) securities traded in the fourth market
B) purchases and redemptions of the shares of open-end investment companies
If the nation's GDP over the past four quarters came in at 2%, 1%, -2% and -1%, respectively, we are likely experiencing what? A) revision B) recession C) depression D) recovery
B) recession
The Windmill Alternative Energy Fund offers its shares to the public at the fund's net asset value (NAV) based on the next calculation of that figure. Based on this, you can say that the fund is A) a front-end load fund B) a closed-end fund C) a no-load fun D) a hedge fund
C) a no-load fund
Gross domestic product (GDP) is a measure of which of these? A) the increase or decrease of the cost of a representative basket of goods B) the amount of pollution produced domestically within a nation C) all economic activity within the borders of a nation D) all economic activity for the entities of a nation
C) all economic activity within the borders of a nation
A penny stock is defined as A) an exchange-listed stock trading at $5 or less per share B) a stock in a company that has suffered a 50% devaluation within the most recent 30 calendar days C) an unlisted (not listed on a U.S stock exchange) security trading at less than $5 per share D) an unlisted common or preferred stock trading for $5 or less per share
C) an unlisted (not listed on a U.S stock exchange) security trading at less than $5 per share
An investor is selling shares of Ryle 144 restricted stock after holding it the required length of time. the buyers of these shares are purchasing shares of stock that A) will be unregistered but no longer subject to a holding period B) are now considered registered but will still be subject to a holding period C) are now considered registered and no longer held to a holding period D) will still be registered and will be subject to a holding period
C) are now considered registered and no longer held to a holding period
your customer is very excited about Cavendish Carousel Corp, a maker of amusement park rides. he believes that the company is well posed to grow in the next several years. his attitude is described as A) bearish B) bovine C) bullish D) brutish
C) bullish
which of the following is not true regarding convertible bonds? A) coupon rates are usually lower than nonconvertible bond rates o the same issuer B) convertible bondholders are creditors of the corporation C) coupon rates are usually higher than nonconvertible bond rates of the same issuer D) if the common stock s above parity, the convertible feature will affect the price
C) coupon rates are usually higher than nonconvertible bonds of the same issuer
you notice a new customer, Malcolm Wren, as a pattern of buying and selling stocks with holding periods of just a day or two. he seems unconcerned with losses. additionally, between trade he wires the money to and form a number of offshore accounts. after informing your sup, the most likely action for your company is to A) inform the SEC B) file a CTR with FinCen C) file a SAR with FinCen D) inform the customer about the irregular activity in the account
C) file a SAR with FinCen
for tax purposes, which of the following is not associated with being reportable as ordinary income? A) wages earned B) rent or lease payments received C) gains from securities transactions D) interest received from debt securities
C) gains from securities transactions
Capital appreication is another term for which of the following? A) liquidity B) income C) growth D) safety
C) growth
A client and her spouse own shares in the ACE Fund as tenants in common. if each has a 50% ownership interest in the account, and the client dies, what happens to the shares in the account? A) the account would be liquidated B) her spouse would automatically own all the shares C) half of the shares would belong to her spouse, and the remaining half would be distributed to her estate D) ownership of the shares would be determined by probate court
C) half of the shares would belong to her spouse, and the remaining half would be distributed to her estate
All of the following statements regarding the different securities offering types are true except A) in a secondary additional issue, underwriting proceeds go to existing stockholders B) in an initial public offering (IPO) underwriting proceeds go to the company C) in an additional primary offering (APO) underwriting proceeds go to existing stockholders D) in a secondary offering of a new issue, underwriting proceeds go to existing stockholders
C) in an additional primary offering (APO) underwriting proceeds go to existing stockholders
If a registered representative terminates their employment to enter regular military service, what happens to their license? A) it is terminated B) it is suspended C) it is placed in a special inactive status D) it may continue to be used
C) it is placed in a special inactive status
a breakpoint sale is defined as the sale of the mutual fund shares in an amount A) just below the public offering price of the fund B) required as the minimum investment in a fund as specified by the SEC C) just below the dollar amount at which the sales charge is reduced D) at or above the dollar amount at which the sales charge is reduced
C) just below the dollar amount at which the sales charges is reduced
which of the following is not reported on form u4? A) aliases B) residence history C) marital status D) employment history
C) marital status
a broker dealer must make a reasonable effort to obtain the name and contact info for a trusted contact person for a senior customer when doing which of these? A) opening an account and every two years thereafter B) opening an account and annually thereafter C) opening an account or when updating account information D) opening an account and on the customers birthday every third year
C) opening an account or when updating account information
A company that issues cumulative preferred stock A) pays the current dividends on the preferred, but not on the past dividends on the preferred, before paying a dividend on the common B) pays the preferred dividend before paying the coupons due to its outstanding bonds C) pays in arrears and current preferred dividends before paying dividends on common stock D) forces conversion of the preferred that is trading at a discount to par, thereby eliminating the need to pay past-due dividends
C) pays in arrears and current preferred dividends before paying dividends on common stock
an investor holds a bond where the issuer is scheduled to repay the borrowed principal at intervals over a number of years. this investor is holding A) balloon bond B) term bond C) serial bond D) series bond
C) serial bond
The Conduct Rules A) establish standard trade practices, including settlement dates, good delivery procedures and ex dates B) determine who is at fault in disputes that would result in monetary settlements C) set out fair and ethical trade practices that member firm and their representatives must follow D) determine how member violations will be heard, reviewing and addressed
C) set out fair and ethical trade practices that member firms and their representatives must follow
a customer with no mutual funds investment wishes to invest $47,000 in the XYZ Technology Fund. if the class A shares are eligible for a breakpoint sales charge discount at the $50,000 investment level, Thea action least appropriate for an agent is to A) inform the customer that he can reduce his sales charge through a letter of intent B) inform the customer that he can reduce his sales charge by combining purchases in other funds offered by the XYZ complex of funds C) inform the customer that he can reduce his sales charge by investing an additional $3,000 D) place the order as instructed
D) place the order as instructed
your customers frank and gracias Chen, are considering investing in a private placement to add to their portfolio. they mention they are accredited investors. if accurate, they have a net worth of at least A) $1 million or had an annual income greater than $300,000 in each of the two most recent years B) $1 million or had an annual income greater than $200,000 in each of the two most recent years C) $1 million or had an annual income of at least $200,000 in the past year D) $5 million or had an annual income of at least $100,000 in each of the five most recent years
A) $1 million or had an annual income greater than $300,000 in each of the two most recent years
Your client, Sven, has an extensive portfolio of stocks and bonds. Last year, he had an income of $36,000, of which $200 a month was from a part-time job and the rest from his portfolio. How much can he contribute to a Roth IRA for the previous year? A) $2,400 which is not deductible from his ordinary income B) The indexed maximum which is not deductible from his ordinary income C) The legal maximum, which is deductible from his ordinary income D) $2,4000 which is deductible from his ordinary income
A) $2,400, which is not deductible from his ordinary income
Your customer, Rodrigo, is 40 years old. he is married and has four sons. five years ago, he purchased a non qualified variable annuity for $20,000. it has grown to $25,000 by the time he withdraws $10,000 to pay for his oldest son's college tuition. how will the withdraw be taxed? A) $5,000 tax free and ordinary income, plus a 10% penalty on the other $5,000 B) ordinary income and a 10% penalty on the entire amount of the withdraw C) no taxes on the withdrawal if customer specifics it is from principal only D) ordinary income on $10,000
A) $5,000 tax free and ordinary income, plus a 10% penalty on the other $5,000
Diversifying a portfolio may help mitigate which of these types of risks? A) legislative risk B) market risk C) systematic risk D) interest rate risk
A) Legislative risk
your customer Leticia Ryan loves to drive fast cars. she has been considering purchasing a very fast car from an Italian automaker. recently, she read that changes in the dollar might impact what she will pay for the car. she asks you to help her understand and you explain to her that A) a decreases in the value of the U.S. dollar versus the Eurodollar may increase what the car will cost for her B) changes in the U.S. dollar verses the Eurodollar will have no effect on the price of her imported car C) an increase in the value of the U.S dollar verses the Eurodollar may increase what the car will cost her D) a decrease in the value of the U.S dollar versus the Eurodollar may decrease what the car will cost her
A) a decrease in the value of the U.S. dollar versus the Eurodollar may increase what the car will cost her
Achieving a Better Life Experience (ABLE) accounts may be opened for beneficiaries at what age? A) any age B) on or after the beneficiary's 26th birthday C) before the beneficiary's 26th birthday D) before the beneficiary reaches the age of majority in their home state
A) any age
the largest employer in Los Nachos, CA has closed. the subsequent drop in revenue is threatening the city's ability to make its next interest payment on a bond. this is an example of what type of risk? A) default risk B) systematic risk C) seismic risk D) business risk
A) default risk
A client buys stock on Monday, May 2, in cash account. under regulation T when is the client's payment due? A) four business days B) two business days C) at or prior to the time of order placement D) same day
A) four business days
an existing shareholder receives 1,000 stock rights from the issuer, allowing the holder to do all of the following except A) hold the rights indefinitely for future use B) sell the rights and profit from any increased market value C) allow the rights to expire unexercised or unsold D) exercise the rights to purchase more shares
A) hold the rights indefinitely for future use
The Securities Exchange Act of 1934 covers all of the following except A) issuance of corporate securities B) broker-dealer and associated persons C) manipulative, deceptive devices D)trading of corporate securities
A) issuance of corporate securities
One of the ways in which closed-end investment companies differ from open-end investment companies is in their ability to A) issue preferred stock B) lend money C) issue common stock D) operate as non diversified management companies
A) issue preferred stock
which of the following investments typically caries significant liquidity risk? A) limited partnership B) listed equities C) mutual funds D) t-bills
A) limited partnership
A common shareholder's preemptive right is the right to A) maintain a proportionate share of ownership in the corporation B) any increase in share value between the time purchased and sold C) share in earrings of the corporation via dividends when declared D) vote for board members when vacancies arise
A) maintain a proportionate share of ownership in the corporation
a risk within a business that represents a specific threat to that company is an example of which of the following? A) nonsystematic risk B) purchasing power risk C) systematic risk D) market risk
A) nonsystematic risk
money laundering is defined as A) process used to make funds obtained from illegal activity appear to have come from an original source B) process of making counterfeit currency appear to be legal tender C) federal reserve bank process of renewing worn currency D) process of using legitimate money for illegal activity
A) process used to make funds obtained from illegal activity appear to have come from an original source
An investor purchased a corporate bond at 98 5/8 sold the bond at 101 3/4. how much money did he make or lose on this transaction? A) profit of $31.25 B) loss of $3.125 C) loss of $31.25 D) profit of $3.125
A) profit of $31.25
Which of the following transactions may be made on margin? A) purchase of NYSE-listed closed-end fund shares B) purchase of open-end funds C) purchase of listed stock in custodial account D) purchase of option contracts
A) purchase of NYSE-listed closed-end fund shares
When a company liquidates assets, in which order are claims satisfied? A) secured bondholders, debentures, preferred stockholders, common stockholders B) Debentures, secured bondholders, common stockholders, preferred stockholders C) guaranteed bonds, secured bondholders, debentures, common stockholders D) common stockholders, preferred stockholders, secured bondholders, debentures
A) secured bondholders, debentures, preferred stockholders, common stockholders
a major difference between an open-end management investment company and a closed-end company is that the open-end investment company A) sells shares through a continuous primary offering B) has a fixed number of shares outstanding C) has a price determined by supply and demand D) offers shares that are not redeemable by the issuer
A) sells shares through a continuous primary offering
which of the following statements describing section 529 plans is true? A) the maximum contribution varies from state to state B) the fees associated with them are similar from state to state C) most state college savings plans require either the owner of the beneficiary of the plan to be a state resident D) they can only be opened for children under age of 18
A) the maximum contribution varies from state to state
Sandal manufacturer Achilles, Inc had registered to sell shares of its stock to the public for the first time. The company has several different uses for the money to be raises - first amount them is the building of new manufacturing plant outside of Troy Michigan. this sale would be part of A) the primary market B) the spot market C) the OTC market D) the secondary market
A) the primary market
an investor purchased a call. she has A) unlimited upside and limited downside B) limited upside and unlimited downside C) unlisted upside and downside D) limited upside and limited downside
A) unlimited upside and limited downside
all of the following are money market instruments except A) warrants expiring within three months B) banker's acceptances C) negotiable certificates of deposit D) treasury bonds maturing within the next year
A) warrants expiring within three months
An IRA can be funded using all of the following except A) works of art B) stocks and bonds C) an investment company D) securities
A) works of art
a registered representative RR wants to give employees of another broker dealer located in the same office building $20 boxes of chocolate for the holiday season. which of following is true? A) because the gifts are not conditional on sales or reciprocal business from the other member firm, no permission is needed from the RR's employing firm to give the gifts B) the gifts are permitted if no condition of sales or reciprocal business is expected, and the RR implying firm gives prior approval C) the gifts do not violate the annual dollar gift limit threshold and are therefore permitted in all circumstances with no approval required D) the gifts would not be permitted, as all gifts to other member firm employees are strictly prohibited
B) the gifts are permitted if no condition of sales or reciprocal business is expected, and the RR employing firm gives prior approval
you quote ABC stock a customer 72 bid for 1,000 shares, 700 offered at 72.10. which of the following is true? A) 72 is the ask price B) the quote's inside spread is $0.10 C) 72.10 is currently the highest price any buyer is willing to pay D) 72 is currently the lowest price any seller is willing to accept
B) the quote's inside spread is $0.10
under the uniform transfer to minors act (UTMA), Oscar wants to give some stock to his brother's son, whose father is the legal guardian over. however, if Oscar wants to name himself as custodian, which of the following needs to be done? A) Oscar must relieve legal permission to act as a custodian B) Oscar must have the permission of the guardian C) Oscar must open the account and name himself as the custodian D) Oscar must file the proper legal documents
C) Oscar must open the account and name himself as the custodian
All of the following accounts would be fully covered by the Securities Investor Protection Corporation (SIPC) in the even of a broker-dealer's failure except A) $250,000 in case and $100,000 in Jim's favorites technology fund B) $200,00 in an index ETF in an account with 100 30-year T bonds C) $200,00 of Windmill Advisors Growth Fund and $300,000 in steel features D) $200,000 in seabird coffee company stock and $300,000 in the Alf's Money Market Fund
C) $200,000 of Windmill Advisors Growth Fund and $300,000 in steel features
if a real estate investment trust (REIT) distributes 85% of its net investment income to shareholders, on how much of its net investment income must the trust pay taxes? A) only on that portion not taxable to the shareholders B) 85% C) 100% D) 15%
C) 100% REIT must pass at least 90% of net investment income on to shareholder - only distributing 85% must pay taxes on all of net investment income
an investor has the following position in MES stock: 100 shares at $30. After a 2:1 split, the investor will have A) 200 shares at $30 per share B) 100 shares at $15 per share C) 200 shares at $15 per share D) 100 shares at $60 per share
C) 200 shares at $15 per share
a quote for seabird airlines is 17B 17 1/2A 5x5. a customer would be able to sell how many shares and at what price? A) 1750 shares at $5 a share B) 500 shares at $17.50 a share C) 500 shares at $17 a share D) 5 shares at $17 a share
C) 500 shares at $17 a share
Your customer, Ceclia is 40 years old and is married with four songs. her third child, is 13 years old and has committed to going to college in Los Angeles in southern CA. Celia and her spouse have noted the rapid increase in school's tuition over past few years and worried about their savings keeping pace with tuition costs. they express discomfort with uncertainties in market returns. which of the following is the most suitable recommendation for the customer? A) custodial account in name of the minor B) coverdell ESA account C) 539 prepaid tuition plan D) 529 college savings plan
C) 539 prepaid tuition plan
A customer enters an order that must be executed in its entirety when entered or canceled immediately. This is known as A) an immediate or cancal (IOC) order B) an all-or-none (AON) order C) a fill-or-kill (FOK) order D) a day order
C) a fill-or-kill (FOK) order
a registered representative is introducing options terminology to a client. of the following, which explanation regarding owners and writers of listed equity option call contracts would be true? A) the owner of a call is obligated to exercise the contract to sell shares to the writer, who may choose to purchase them or not B) the owner of a call has the right to exercise the contract, and the writer would then have the right to buy shares from the owner at the strike place C) the owner of a call has the right to exercise the contract, and the writer would then be assigned and obligated to sell shares to the owner at the strike place D) the owner of a call has the right to exercise the contract, and the writer would then be assigned the obligation to buy shares from the owner at the strike price
C) the owner of a call has the right to exercise the contract, and the writer would then be assigned and obviated to sell shares to the owner at the strike price.
ABC corporation's stock is trading at $35. A client has purchased a 50 call. the option's current value is made up of A) neither time nor intrinsic value B) intrinsic value only C) time value only D) both intrinsic value and time value
C) time value only
Joshua, a registered representative, calls a prospect at7:00 pm only to be told that the caller is in a different time zone, where it is 10:00 pm. Joshua has done which of these? A) not a violation because area code was local to joshuas location B) not a violation because rule is no longer valid due to emerging mobile technology C) violated the TCPA because it is after 9:00 pm in the prospects time D) not violated the TCPA because it is still within the allowed time at his location
C) violated the TCPA because it is after 9:00 pm the prospects time
if an investor purchases $1,000 face amount of 8% corporate bond at 93, and the bond is scheduled to mature is 2028. what will the investor receive at maturity? A) $1.080 B) $930 plus 8% on investment funds C) $1.000 D) $1,040
D) $1,040
John a customer purchases 500 shares of the Sierra Verde coffee company at $22 a share in margin account. what is johns initial margin requirement for this purchase? A) $2,750 B) $2,000 C) $11,000 D) $5,500
D) $5,500 minimun deposit is the higher of $2,000 or 50% - total of trade is $11,000 and half is $5,500
upon termination a member firm must file a form u-5 within how many days? A) 5 business days B) 45 days C) 10 days D) 30 days
D) 30 days
If Edna moves $50,000 from a maturing certificate of deposit to her checking account, which of the following measures of money supply would change? A) M2 B) M3 C) all of these D) M1
D) M1
which of the following offering types would be used for a deal that will be sold exclusively to residents of one state? A) rule 144 offering B) A Reg S offering C) A Reg A offering D) Rule 147 offering
D) Rule 147 offering
Supply-side economists believe that the government should A) manipulate the money supply to bring stability in prices B) use fiscal policy to control the demand for goods and services C) use taxation to increase or decrease the money supply D) allow market forces to determine prices of all goods
D) allow market forces to determine prices of all goods
For common shareholders, which of the following is TRUE A) an increase in the value of shares owned represents income B) dividends declared by the board of directors represent growth or capital appreciation C) dividends declared by the board of directors represent neither income or growth D) an increase in the value of shares owned represents growth or capital appreciation
D) an increase in the value of shares owned represents growth or capital income
Numbers measuring the output of goods and services have been declining for just under two years. The economy would be characterized as A) expanding. B) being in an economic trough within the business cycle. C) being just under the recessionary measurement threshold. D) being in a depression.
D) being in depression
BuyMore, Inc is a NYSE-listed retailer. the company has a long history of steady growth and has paid dividends every quarter for five decades. they recently announced that they expect steady growth in the same store sales and will continue paying dividends into the foreseeable future. they have also announced plans to expand into Central and South American. BMOR stock is an example of A) mid-cap stock B) emerging market stock C) preferred stock D) blue-chip stock
D) blue chip stock
Your customer owns 500 common shares of seabird airlines. he purchased the shares three years ago at $45 a share. Seabird is currently trading at $92 a share. the customer is concerned that a recent drop in airline travel will negatively impact the price of the stock. however, he does not want to sell the shares as he believes the company's long term prospects are good. What would you recommend to the customer? A) buy 5 SBRD 90 calls B) sell 5 SBRD 95 calls C) sell 5 SBRD 95 puts D) buy 5 SBRD 90 puts
D) buy 5 SBRD 90 puts
rob takes a job with seacoast securities, a FINRA member broker dealer firm, as a receptionist in a branch. which of the following activity's may violate the rules concerning activities of registered persons A) directing a customer to the restroom B) directing a customer to a deli Rob really likes C) providing a prospectus in response to customer request D) directing a customer to a flyer for a specific mutual fund that Rob really likes
D) directing a customer to a flyer for a specific mutual fund that Rob really likes
if interest rates are changing, which of the following terms would best describe the relationship between prices and yields for corporate bonds? A) reverse B) adverse C) conterminous D) inverse
D) inverse
An investor with no other positions in LMN stock purchases 600 shares at the market. This investor is A) short LMN stock and bullish B) short LMN stock and bearish C) long LMN stock and bearish D) long LMN stock and bullish
D) long LMN stock and bullish
if a bond is purchased at a premium, the yield to maturity is A) higher than the nominal yield B) higher than the current yield C) the same as the current yield D) lower than the nominal yield
D) lower than the nominal yield (bond purchased at premium is purchased for an amount greater than the face amount of the bond. premium paid reduces both current yield and yield to maturity
risk that is specific to an issuer, or even an individual issue, is called which of these? A) systematic risk B) reasonable risk C) market risk D) nonsystematic risk
D) nonsystematic risk
You are recommending the purchase of the XYZ Grown Fund to one of your clients, and you explain that the fund operates pursuant to a 12b-1 plan. Under the terms described in the prospectus, the fee is A)included in sales charge when shares are purchased B)reduced on purchases that reach or exceed specified breakpoints C)a part of the fee paid to the fund's investment manager D) part of the expense ratio of the fund.
D) part of the expense ratio of the fund.
A new registered representative for a broker-dealer is taking a part-time job at a restaurant on evenings and weekends to supplement current income. Regarding this activity, A) no prior notice is required, but the rules allow the firm to retain the right to prohibit all paid activity unrelated to the broker-dealer's business B) prior written notice must be made to the member firm, and the firm must expressly grant permission, in writing, prior to acceptance of the position C) no prior written notice must be made to the member firm because the firm has no authority to reject or restrict the affiliation D) prior written notice must be made to the member firm, who could reject or restrict the affiliation
D) prior written notice must be made to the member firm, who could reject or restrict the affiliation
in a prime brokerage account, the prime broker A) subcontracts out all services to other brokers B) provides custody, clearing and all execution services C) provides execution services only, while another broker clears transactions and provide any other account services required D) provides custody and clearing services and may share execution services with other broker-dealers
D) provides custody and clearing services and may share execution services with other broker-dealers
For an owner to be paid a dividend, his name should be recorded on the stock record book of the issuer's transfer agent by A) payable date B) next business day C) ex-date D) record date
D) record date
if representative Jamison sends a flyer introducing an exiting new investment opportunity to 30 existing middle market customers, this communication would be considered which of these? A) educational communication B) institutional communication C) correspondence D) retail communication
D) retail communication
which of the following orders would not be a discretionary trade? A) spend up to $10,000 buying a great airline stock B) spend an appropriate amount investing in Seabird Airline stock C) liquidate the weakest position among the three airline stocks in portfolio D) spend up to $10,000 buying seabird airline stock
D) spend up to $10,000 buying seabird airline stock only one option identifies all three aspects of trade: amount, asses, and action.
risk that is difficult to reduce by diversification within an asset class is called which of these? A) financial risk B) nonsystematic risk C) unsystematic risk D) systematic risk
D) systematic risk
a customer enters an order to buy 1,000 shares of XYZ at 21.which of the following is true regarding these order instructions? A) the order can only be executed at 21 B) the order can be executed at 21 or higher C) the order must be executed immediately D) the order can be executed at 21 or lower
D) the order can be executed at 21 or lower because instruction to buy, purchasing better means at a price lower than limit
under the uniform practice code, regular-way transactions for common stock settle on A) the same day as the trade B) the seventh business day following the trade date C) the third business day following the trade date D) the second business day following the trade date
D) the second business day following the trade date
As participants in a firm commitment underwriting agreement, the underwriters know that A) if shares cannot be sold to the public, the issuer will not be able to raise all of the capital needed as an agent B) they, the underwriters, will not be at risk for any securities left unsold C) for the issuer, they are only committing to making their best effort to sell securities for them D) they, the underwriters, will be acting as a principal buying the securities from the issuer
D) they, the underwriters, will be acting as principals buying securities from the issuer
if a representative possesses material inside information about a publicly traded company, under which of the following circumstances may he communicate this information to a customer? A) if the customer knows it is inside information B) if the customer enters an unsolicited order C) if the information will be made public the next day D) under no circumstance
D) under no circumstance