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Question 1

What is OFAC in charge of?

Answer 1

Maintaining a list of known and suspected terrorists

Question 2

What do FINRA members not have to maintain regarding account information?

Answer 2

Customer signatures

Question 3

What do closed-end fund shares sell at?

Answer 3

Below NAV

Question 4

What percentage of the board of directors members for a mutual fund must be non-interested persons?

Answer 4

40%

Question 5

What happens with a qualified retirement plan?

Answer 5

Most types of contributions are not taxed until withdrawn

Question 6

Who uses a prime broker?

Answer 6

Institutional investors

Question 7

When do cash settlement transactions settle?

Answer 7

The same day as the trade

Question 8

What are anticipation notes?

Answer 8

Notes that will be paid back from a future source of funds

Question 9

What type of investment faces more inflationary risk?

Answer 9

Fixed-income investments

Question 10

What is selling dividends?

Answer 10

When a registered rep encourages the purchase of shares in a fund right before a dividend payment date

Question 11

What is the real interest rate?

Answer 11

Stated interest rate minus the inflation rate

Question 12

What type of indicator are stock market prices?

Answer 12

Leading indicators

Question 13

How do short-term capital gains and long-term capital gains compare?

Answer 13

Short term gains are taxed at higher rates than long term gains

Question 14

What happens to a registered individual who does not complete continuing education?

Answer 14

They are suspended from their FINRA firm and cannot be paid until their education is complete

Question 15

How long does shelf registration for seasoned investors last?

Answer 15

3 years

Question 16

Distributions from Roth IRAs will be subject to a penalty if withdraws within what time?

Answer 16

5 years of the original contribution

Question 17

What do ERISA rules say?

Answer 17

Investments that are suitable for a retirement account stress the safety of principal

Question 18

What are examples of marginable securities?

Answer 18

Listed corporate stocks and bonds

Question 19

What is the compensation for an unregistered hedge fund?

Answer 19

Percentage of AUM + a performance fee based on profits

Question 20

What is true regarding a mutual fund letter of intent?

Answer 20

• Backdated a maximum of 90 days
• Can cover a maximum of 13 months

Question 21

What do all mutual funds charge?

Answer 21

An annual management fee

Question 22

What type of preferred stock moves in price as the price of common stock moves?

Answer 22

Convertible preferred

Question 23

What is yield to call?

Answer 23

The yield of a callable bond, assuming the bond is held until its first call date

Question 24

What needs to have occurred for the SEC to set the effective date for a new issue?

Answer 24

Documents have been filed with the SEC

Question 25

What is needed when a new trust account is opened?

Answer 25

The tax identification number of the trust must be obtained

Question 26

Ginne-Maes are considered to be what?

Answer 26

Conservative investments that may be suitable for senior investors

Question 27

Who can a fund of hedge funds be sold to?

Answer 27

Investors that can pay the minimum $25,000 amount

Question 28

What act covers the registration of new issues?

Answer 28

The Securities Act of 1933

Question 29

What types of orders are reduced on ex-date?

Answer 29

OBLOSS

Question 30

What is the second market for?

Answer 30

Trading of OTC stocks