All Random

Question 1

Issuer’s Bond Counsel

Answer 1

Independent bond counsel is retained by the issuer to render a legal opinion for an issuer to ensure it’s legality and tax-exempt status.

Question 2

A mutual fund representative may use their prospectus for how long?

Answer 2

16 months

Question 3

Fiscal Policy is controlled by?

Answer 3

The president and congress

Question 4

To open a guardian account a firm must obtain:

Answer 4

Declaration Papers

Question 5

Prime Rate

Answer 5

The Prime rate is set by banks. Usually using the interest rate given to lenders with good credit.

Question 6

For serious complaints (ex. forgery) a firm must notify FINRA within:

Answer 6

10 days of the receipt of the complaint.

Question 7

A contingent deferred sales charge

Answer 7

Back end load

Question 8

ABLE Accounts

Answer 8

An account established to cover qualified care and living expenses for disabled people. The first $100,000 in assets will be excluded when calculating the individual’s ability to receive supplemental security payments.

Question 9

CPI

Answer 9

Consumer Price Index. As it goes up, the value of money goes down and vice versa.

Question 10

Rule 144 Subsection A

Answer 10

Subsection A allows for the resale of restricted securities without regard to the holding period and volume limitations so long as the purchaser meets the definition of a qualified institutional buyer. A qualified institutional buyer must have $100 million in assets.

Question 11

Authorized Stock

Answer 11

Stock that hasn’t been issued yet.

Question 12

Keynesian Economic Model

Answer 12

The Keynesian economic model believes that a mixed economy based on private and public sector efforts will produce desired economic conditions. Keynesians believe that the decisions made in the private sector can lead to supply and demand imbalances and that an active policy response from the public sector is required to maintain stability.

Question 13

Perpetual Securities

Answer 13

Securities that have no maturity date.

Question 14

Straight Life/Life Only Annuity Payout Option

Answer 14

Offers highest monthly payout for an annuity. The payouts are highest because it’s the most amount of risk. The payments end when the annuitant die.

Question 15

Commercial Paper

Answer 15

Short term unsecured promissory notes issued by companies. Max lifetime is 9 months or 270 days.

Question 16

Balance Sheet expressed:

Answer 16

Net Worth = Assets - Liabilities
OR
Total Assets = Total Liabilities + Net Worth

Question 17

Tax Anticipation Notes

Answer 17

Short-term financing instruments used by municipalities to even out their cash flow.

Question 18

JTIC

Answer 18

Joint Tenants in Common. Upon death of one party their portion of assets will become property of their estate.

Question 19

Federal Fund Rate

Answer 19

The rate that member banks charge each other for overnight loans.

Question 20

JTWROS

Answer 20

Joint Tenants with rights of survivorship. Assets are considered community property. Upon death of one party the assets will be reregistered under the surviving member.

Question 21

How much is one bond point worth?

Answer 21

$10

Question 22

XYZ has just gone public and is quoted on the Nasdaq Capital Market securities market. Any investor who buys XYZ must get a prospectus for how long?

Answer 22

25 days

Question 23

Brokerage firms must maintain their advertising for:

Answer 23

3 years or 36 months!

Question 24

Minor Rule Violation Maximums for FINRA:

Answer 24

$2,500 and a censure.

Question 25

Rights offering lasts how long?

Answer 25

45 days