Exam 24 Wrong Answers Flashcards
Which of the following are characteristics of auction rate securities?2
They have regularly resetting interest rates
They are issued by corporations and municipalities
Which of the following are true of the interbank market?2
Major users are banks and large multinational corporations
Foreign currencies are usually traded in blocks of $1,000,000 to $5,000,000
If an individual is found in violation of SEC rules for bribing a foreign official, the Act of 1934 specifies a maximum penalty of
$100,000, imprisonment for 5 years or both
Moody’s MIG rating would apply to which of the following?
Bond anticipation notes
How often can an investor purchase the maximum number of option contracts?
5 business days
Which of the following statements correctly summarizes that tax advantages of qualified retirement plans?
All of the above are correct
Which of the following is the most secure?
TAN
If a municipal firm makes a contribution to the county assessor in the community where their office was located, which of the following occurs?
The firm would be unable to enter into a negotiated underwriting with that municipality for 2 years
In pricing a new issue, a municipal bond underwriter would most likely check
The 30-day visible supply
Which of the following is the most widely used index for option contracts?
S&P 100
XYZ stock is trading at $1.25 per share. With Reg T at 50%, what is the required deposit to sell short 10,000 XYZ @ $1.25 per share?
$25,000
When a member is liable for its percentage of any unsold securities, the syndicate is a(n) 2
Eastern Syndicate
Undivided Syndicate
The first level of appeal by a respondent to a decision by the Department of Enforcement would be to the
National Adjudicatory Council
An engineering report would be used for which of the following?
Hospital revenue bond
Which of the following would not issue overlapping debt?
State
All of the following are considered separate customer accounts for the purpose of SIPC coverage except
An individual’s cash and margin accounts
A large corporation places an order to purchase a block of its own stock. The order is placed with a floor broker who enters the order with a specialist. The order is taken off the floor and filled. The block order is
A specialist block
A municipal workable indication is the same as a
Likely bid
The Investment Company Act of 1940 states that a certain percentage of a mutual fund’s board of directors be affiliated with he fund. This minimum percentage of unaffiliated members must be at least
40%
Sell ABC short 20 stop 20.50. The ticker tape shows 19, 20, 21, 20.50, 20.25. At what price was the trade executed?
21
Under NYSE rules, the final approval to open a new account is given by the
Partner or principal
The LRH Growth Fund has a net asset value (NAV) of $16.84 and a maximum offering price listed at $18.11. The sales charge for this fund is
7%
Which of the following correctly describes a bond’s interest accrual period?
The last payment date up to but not including settlement date
According to the Trust Indenture Act of 1939 a trust indenture is required
On corporate bonds
In order to avoid the wash sale rule, the investor when selling a security should not
Purchase a call option on the security within 30 days prior to and after the sale
With a systematic withdrawal plan, from what source are the first payments made?
Dividends
Accrued interest on a new issue municipal bond is calculated from
Dated date to settlement date
A customer purchases 100 shares of XYZ at 40 in a cash account. Four days later, he deposits $3,000 with a promise to deposit the remainder the next day. Three days later, no money has come in. What should the registered representative do?
Sell out enough to cover the remainder and freeze the account for 90 days
Which of the following large block transactions appears on the exchange tape prior to execution on the exchange floor?
Special offer
Which of the following preferred shares has the highest yield?
Callable
