Exam 9 Wrong Answers Flashcards
Your cash account is restricted and frozen due to Reg T violation. Which is true?
A transaction can be completed as long as there is cash in the account
A rate covenant is associated with which of the following?
Revenue bond
In order to avoid paying taxes at the trust or corporate level, a REIT must distribute a certain amount of its income in the form of dividends. What is this percentage?
90%
In a firm commitment underwriting, who takes responsibility for unsold shares?
The syndicate
Which of the following is not a characteristic of ETNs?
Limited principal protection
Registered persons on active duty in the US military who are placed on inactive status with FINRA
May earn commissions
What is the collateral for a collateral trust certificate?
Securities from a different issuer
Judy continued issuing trade instructions and making account withdrawals immediately after her husband died. Their account was a
JTWROS
An agent may use all of the following with a client to compare different mutual funds except
The amount of the client’s likely investment
For transactions of $10,000 or more, a broker/dealer is required to file a Currency Transaction Report (CTR) with the
Financial Crimes Enforcement Network
What is the penalty for excessive contributions to an IRA?
6%
Which of the following is not a reason for a corporation to buy back its stock in the secondary market?
To reduce interest charges
A FINRA member that is required to join SIPC is also required to
Purchase a blanket fidelity bond
Which of these statements is incorrect concerning broker/dealers?
A firm can act in both the capacity of a broker and a dealer when selling securities from its own inventory
Which of the following securities is not redeemable?
Common stocks
The number of authorized shares can only be changed by which of the following?
The majority approval of the shareholders
A consumer wants to opt out of allowing the broker/dealer to share non public personal information with non affiliated third parties. All of the following would be considered reasonable ways to do this except
Writing a letter to the broker/dealer
Which of the following is true regarding ABLE accounts?
Savings from a 529 education account may be rolled into an Able account
Which FINRA by-law sets guidelines for how broker/dealers conduct business with each other?
Uniform Practice Code
All of the following are true of REITs except
REITs are investment companies
An issuer files an S-1. This initiates the
Cooling-off period
