Exam 29 Wrong Answers Flashcards
The Securities Exchange Act of 1934 covers all of the following except
The registration of all new securities
Normally, a stock starts trading ex-dividend on the
One business day prior to the record date
In calculating the net interest cost on a new issue of municipal securities that have been bid at a premium, the dollar amount of the premium will be
Subtracted from the total interest cost
The ratio of overall debt to assessed valuation does not provide an accurate comparison of the general obligation debt of different municipal issuers for which of the following reasons?
The basis of assessment is not consistent among municipalities
If a customer is long a March 38 British Pound call and short a June 36 British Pound call, the position is known as a
Bear call spread
The rate covenant on a municipal revenue bond sets the
Minimum rate
A difference between a fill or kill (FOK) order and an all or none (AON) order is that
The AON is not immediately canceled if it is not instantly executed
A log of all recommendations given by personnel of member organizations must be retained for
3 years
An additional $3,000 transaction in a general margin account requires a deposit of
$1,500
In a margin account, based on hypothecation rules of self-regulatory agencies and SEC Customer Protection and Custody of Securities rule, a broker may collateralize to a bank a customer’s securities up to what percentage of the debit balance?
140%
To qualify as an intrastate offering of securities, the sponsor of a real estate syndication must invest
80% of the funds in the sponsor’s home state
An investor owns 1000 shares of ABC, a biotechnology company that is still in the early stages of testing a new drug. The price of the stock dropped recently, but the investor believes hat the drug the company is developing will be a blockbuster. Which of the following strategies would enable the investor to increase the overall return on his portfolio during this time?
Write 10 ABC calls
XYZ Corp has a $50,000,000 outstanding issue of convertible debentures. Each debenture is convertible into common stock at $50. The debentures are trading at 118 and 1/2 and the common stock is trading at 57.50. The company announces that it is calling he entire debenture issue at 101 and 3/4. This type of call is known as a/an
Forced conversion
Which of the following will affect the holding period of a security held for less than 12 months?
Buy a put
Which of the following is more likely to appear in a notice of sale rather than in an official statement?
Powers of the issuer
Which of the following is true regarding enforcement decisions by FINRA?
Decisions may be appealed to the SEC
Which of the following securities are exempt under the Securities Act of 1933.?3
State and municipal securities
Common stock of savings and loan associations
Securities issued by the federal government
A spread position is long 1 WLC Oct 60 call and
Short 1 WLC Oct 70 call
A treasury note is quoted at 100.8. If a customer buys $8,000 par value at that price, what will be the principal dollar amount involved?
$8,020
