Exam 28 Wrong Answers Flashcards
Which of the following is not true concerning physical safety of mutual fund holdings?
Securities cannot exist as electronic records on computers
Which of the following can issue Eurodollar bonds?4
Sovereign governments
State and local governments
US corporations
Foreign corporations
If a call holder chooses to exercise the call, the writer must
Sell 100 shares of the underlying security at the strike price
The syndicator of a limited partnership acts as
The organizer of the partnership responsible for securities registration
When must a client receive an option’s disclosure document
At or before account approval
A retired investor is reinvesting the proceeds from a mature municipal bond. Which of the following would best suit her objectives?
A pre-refunded bond
Your client is bearish on ABC stock. Which of the following option spreads might you recommend?2
Buy 1 ABC July 55 call, sell 1 ABC July 50 call
Buy 1 ABC July 55 put, sell 1 ABC July 50 put
Market value is $12,000. Debit is $8,400. What’s the minimum equity?
$3,000
The Securities Exchange Act of 1934 defines an insider as3
Director or officer of a corporation
Clerical personnel
Outside attorneys and auditors
Which of the following is not a true statement regarding at risk provisions?
At risk provisions are not applicable to the exploration of gas and oil
An employee quits her job where she has a balance of $10,000 is her employer provided qualified plan. If she requests that the plan distribution is paid to her so that she can roll the proceeds into an IRA, how much will she receive from the plan administrator, and how long does she have to complete the tax free rollover?
$8,000, 60 days
All retail communications containing a mutual fund ranking must disclose all of the following except
The 10 largest investment holdings in the fund
Under Reg D rule 506, how much money can be raised within 12 months?
An unlimited amount
To calculate taxes due on mutual fund shares being sold using the average cost basis for the shares, what must the investor account for?
The taxes paid on dividend and capital gain reinvestments made for additional shares
A private corporation has been systematically laying off workers in an effort to reduce pension plan liabilities. The corporation is in violation of rules set by
ERISA
