Exam 4 Wrong Answers Flashcards
Domestic and foreign bonds are not subject to which one of the following risks?
Repayment risk
Which of the following statements is incorrect with regard to broker/dealers?
A dealer makes a profit by charging a commission on the security transaction
Which of the following facts concerning UGMA accounts is incorrect?
Securities are registered in the name of the minor
Which of the following issues equipment trust certificates?
A regional airline
An issuer can avoid registration by engaging in a private placement of securities under Regulation D if certain requirements are met. Which of the following statements is correct?
All of the above are correct statements
The shareholders of a mutual fund have certain rights associated with the ownership interests they hold in the company. These rights include all of the following except
Approval authority for the company’s annual report
Shares of stock that have actually been sold to the public are known as
Issued stock
The Bank Secrecy Act was designed to do all of the following except
Protect the privacy of consumers
Regarding UGMA and UTMA, which of the following is false?
The account can hold margined securities
One of your clients bought 100 shares of TBS at 20. The stock has now risen to 55, and the client would like to protect her profit. Which of the following orders should be entered?
Sell stop at 54.88
The rate that the Federal Reserve Bank charges member banks the overnight loans to meet their reserve requirements is called the
Discount rate
Under which of the following circumstances is a company not permitted to restrict or close an account?
The client has sold a recently purchased security that has settled, or the client only has 55% equity in the margin account
All of the following are contained in a fund’s prospectus except
The fund’s current portfolio of securities
A self employed attorney has earned an income of $100,000 a year and her husband earns $30,000 a year as her accountant. How much can she contribute to a spousal option IRA?
$6,000
A guaranteed bond is one that is guaranteed by another company or entity. We would typically see a guaranteed bond used in which of the following situations?
Spinoff
The Federal Act that established procedures for the protection of customer funds and securities in he event that a broker/dealer becomes insolvent is called
The Securities Investor Protection Act of 1970
