Exam 3 Wrong Answers Flashcards
An account under the Uniform Gifts to Minors Act earned $8,500 in interest income from bonds. The minor is 13 years old. How is this interest income taxed?
A portion is taxed at the minor’s rate and a portion is taxed at the rate applied to trusts
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
Failing to respond to a regulatory request in a reasonable amount of time
Will be considered an additional violation
The rate that the Federal Reserve Bank charges member banks for overnight loans to meet their reserve requirements is called the
Discount rate
XYZ Corporation is planning an add on offering. XYZ currently has outstanding shares and is now raising additional capital to build a new manufacturing plant. The quiet period during which no research may be published on XYZ will last for how many days?
3 days after the effective date
Which of the following is true about Treasury Bills?
They are issued in book entry form
An investor anticipates interest rates will rise sharply over the next 2 years. In this scenario, which investment below would allow the investor to profit with the least amount of risk?
Treasury bills
Which transaction can only be executed in a margin account?
Short sale of common stock
Mrs. Johnson bought 200 shares of Intel at 18 in March. When she passed away in June, the market price of Intel was 21. What is the taxation to her daughter, who inherited the shares?
Her cost basis is 21 and the holding period is long term
Which of the following is completed prior to the first margin trade?
Margin account agreement
The current margin requirement under Regulation T of the Act of 1934 is
50%
Eligible 1031 like kind exchanges include which of the following?
Apartment buildings
The ex dividend date is
The first date on which the stock trades without the dividend
A specialist elegies an order to buy XYZ 200 shares 20 stop 19. This means that
The order is triggered at or above 20 and filled at 19 or lower
The Fed Funds rate is the interest rate that
One bank charges another for overnight borrowing
How often must performance statistics in a mutual fund prospectuses be updated?
Every 12 months
A redeemable security is
A security with no secondary trading
According to FINRA rules on private securities transactions, an associated person entering into a series of private transactions without compensation must provide the member firm with all of the following except
A written notice on each transaction in a series
Which of the following would ensure that the numbers of shares printed on the stock certificates are equal to the number of shares that are outstanding for the corporation?
Registrar
All of the following are necessary requirements for a broker/dealer to hold a customer’s mail except
The name of an alternative person to receive important correspondence on behalf of the customer
Which one of the following comparisons would not make sense when deciding between investing in one mutual fund or another?
Funds with different investment objectives
All the following are considered self regulated organizations for the regulation of securities offerings and trading except
SEC
In accordance with the Uniform Gifts to Minor’s Act, a donor may
Give an unlimited amount of cash
Regulation T of the Securities Exchange Act of 1934 gave the power to establish margin requirements to
Federal Reserve Board
