Exam 32 Wrong Answers Flashcards
Which of the following does not price on the basis of par value alone?
Treasury bills
Determine the value of one right when the stock is trading rights using the following formula
(Market price - subscription price)/(number of rights required to purchase 1 share + 1)
Which of the following is an attribute of an investment in an oil and gas partnership program that is not associated with an investment in a real estate partnership program?
Depletion
Your customer has just bought $10,000 worth of Kashmir Growth fund. The trade will settle on
The same day
An investor in a UIT receive what as their evidence of ownership in the UIT?
Shares of beneficial interest
All of the following take place during the cooling off period except
Stabilization of the issue
A broker dealer that is acting as a selling group member in an initial public offering of corporate securities is paid
The selling concession
The rules governing the issuing of corporate securities to the public are covered under which act?
Act of 1933
When an investor has established a covered call position, to determine the break even you must
Subtract the call premium from the purchase price of the stock
A small broker dealer who does not ha e a computerized system in place to review orders, has several discretionary options accounts. Which of the following statements is true?
The firm is required to specify a Registered Options Principal to review discretionary accounts and to approve and initial each discretionary order on the day entered
Your customer is long 100 shares of XYZ at 55 and short 2 XYZ Mar 60 calls at 3. His maximum loss is
Unlimited
Dale buys an XYZ Jan 50 call and writes an XYZ Jan 60 call, what kind of spread is this? When will he profit?
Debit spread
Profit if it widens
An investor established the following:
Long 1 IBM Mar 70 call at 4
Short 1 IBM Mar 60 call @ 8
The maximum loss of the position is
The spread minus the net credit
10 - 4 = 6
A bridge connecting two states would like to issue new bonds to be supported by the same toll revenue as the outstanding issue. The outstanding bonds have an open end covenant. Which of the following are true?
The bonds are subject to ensure that the facility can support the payments for both bond issues
A municipal securities dealer who is analyzing the condition of the new issue market would be most influenced by which of the following?
The 30 day visible supply
Which of the following is true when a new issue of municipal bonds is being sold?3
Pre sale orders have the highest priority
Member orders are usually smaller orders for individual accounts
The bonds may be sold as soon as the issue is awarded
All of the following provide short term financing for a municipality except
Bankers acceptances
Income from which of the following is most likely to subject a high income investor to the AMT (alternative minimum tax)?
Industrial revenue development bond
An investor with a 2 year time horizon has $75,000 to invest. He is seeking semiannual Payment’s if interest income. Which of the following would you recommend?
Treasury note
Joe Smith, a customer of XYZ broker dealer wishes to diversify his portfolio by investing in many different types of securities. Joe will have to sign a suitability statement before investing in all of the following except
An industrial development bond
When a member files retail communications with FINRA what is required to be kept in an internal file at the firm?3
A copy of the communication with the date it was first used
The name of the principal who approved the communication
The date the principal approved the communication
