Exam 18 Wrong Answers Flashcards
Normally a stock starts trading ex-dividend on the
One business day prior to the record date
NASDAQ Level III displays which of the following?2
Registered market makers’ quote and size
Trading volume for each issue
All of the following about customer confirmations of principal transactions in municipal securities are true except
They must disclose any dealer markup
Under Regulation T, a customer purchases stock in her existing margin account and creates a Reg T call. If the customer fails to meet this call within 4 business days, which of the following can occur?3
The broker can sell sufficient stock to meet the call
The broker can request an extension to meet the call
The customer can sell sufficient stock to meet the call
All of the following are generally true about commercial paper except?
It is issued as interest bearing paper
Which of the following is/are true with respect to he risk and liquidity of federal agency securities?2
They are actively traded and have good marketability
In time, the longer maturities fluctuate considerably in price
The spread on a municipal dollar bond with a market of 87 - 7/8 to 88 3/4 is/are which of the following?
7/8 of a point
$8.75 per bond
A customer sells an over the counter (OTC) stock and uses the proceeds to purchase another OTC stock. FINRA’s markup policy applies to
Purchase and sale combined
For a customer in the 28% tax bracket, what is the taxable equivalent yield on a 6 1/2% tax exempt municipal bond priced to yield 6.40%?
8.89%
To be considered a special tax bond, a bond may be secured by all of the following taxes except
Ad valorem
The major difference between an open end investment company and a closed end investment company is in the
Capitalization
When a customer buys a US Treasury note put option, the maximum potential loss is
100% of the premium
An RR with a NYSE member firm cannot be engaged in any other business without the prior written consent of the
Employing broker/dealer
What is the holding period to determine long term capital gains?
1 year plus 1 day from trade date
Money to pay off general obligation debt can be derived from all of the following except
User fees
Which of the following types of investment companies pays out 90% of its net investment income to its shareholders?
Regulated
All of the following are functions of the secondary market except
The purchase of new issue bonds
How many days after the closing date of the public offering must a broker/dealer wait before extending credit on a new issue if that broker/dealer has participated in the distribution of the issue?
30
All of the following are advantages to an investor who owns convertible bonds except
Their guarantee against loss of principal
Under NYSE Rules, when a long sale order is prepared, the registered representative must record which of the following?
Location of the security at the time of the sale
A municipal new issue in which the managers have been appointed by the issuer to purchase and market the bonds is best described as a/an
Negotiated sale
An over the counter (OTC) transaction may be executed by a broker/dealer for all of the following except
As an agent with proper disclosure of a fair and reasonable markup
If Trader X gives bonds to Trader Y with a recall 4
Y has an exclusive option to sell the bonds
A price for the bonds has been agreed upon
A time period has been established
A time for exercising the recall has been established
All of the following are leading indicators except
GDP
Building materials
