Exam 10 Wrong Answers

Question 1

Which of the following statements is true about all US government agency issues?

Answer 1

They are exempt from registration under the Securities Act of 1933

Question 2

The owner of which of the following products is most exposed to inflationary risk?

Answer 2

Treasury bonds

Question 3

Direct participation programs (DPPs) provide

Answer 3

Exposure to non-correlated assets with steady returns

Question 4

If $200 is contributed to a mayor’s reelection campaign 13 months ago, what additional contribution is permitted?

Answer 4

$50

Question 5

The primary purpose of a syndicate desk in the context of an equity offering is to

Answer 5

Build an order book and allocate the stock

Question 6

A broker-dealer is permitted to accept payment for a new issue from a new customer when the

Answer 6

Registration is effective

Question 7

Which of the following statements is true regarding the concept of an annuity contract?

Answer 7

The kind of annuity selected partly determines the payment amounts to the annuitant

Question 8

Under Rule 144A, an issuer of restricted stock is permitted to sell to which of the following investors?

Answer 8

Qualified institutional buyers (QIBs)

Question 9

Under SEC Regulation S-P (Consumer Privacy), which of the following information must a firm include in its customer privacy and opt-out notices?

Answer 9

The policies to protect the security of non public information

Question 10

Call protection is most valuable to a bond owner when bond prices are generally

Answer 10

Rising

Question 11

An investor wants to participle in a tender offer of 1,000 shares, if the company only takes 900,000 out of 1 million shares, how much of the investor’s shares will the company purchase?

Answer 11

1,000

Question 12

Under FINRA rules, which of the following activities by a registered representative requires written notification to her firm?

Answer 12

Driving part time for a transportation network company on weekends

Question 13

UTMA accounts are opened under the tax ID of the

Answer 13

Minor

Question 14

The computation of dollar prices and accrued interest on municipal bonds is normally on what calendar basis?

Answer 14

30/360

Question 15

Under a system of statutory voting, a common stockholder has as many votes for each vacancy on the board of directors as the number of

Answer 15

Shares owned by the stockholder

Question 16

If a market maker posts a quote of 10-10.10 [25x10], which of the following actions is the market maker willing to take?

Answer 16

Buy 2,500 shares at $10.00 and sell 1,000 shares at $10.10