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Question 1

What is true about a writer (seller) of call option?

Answer 1

They have the obligation to sell 100 shares of stock.

Question 2

What are CLOSE-end funds (on an exchange) PURCHASED with?

Answer 2

A commission

Question 3

What are CLOSE-end funds (on an exchange) SOLD with?

Answer 3

MINUS a commission

Question 4

How are C Corporation (C Class mercedes) taxed?

Answer 4

Twice

Question 5

What do buyers of options have?

Answer 5

the right to exercise

Question 6

What do sellers of options have?

Answer 6

obligations

Question 7

If A bond is selling at a premium what does this indicate?

Answer 7

Interest rates have decreased since the bond was issued

Question 8

What is a transaction in which a writer covers a position by purchasing an option called?

Answer 8

A closing purchase

Question 9

What are ADR’s required to be registered under?

Answer 9

Security’s act of 1933

Question 10

What debt security expire in a year or less?

Answer 10

Money market instruments

Question 11

What type of communication can be considered misleading?

Answer 11

Literature with years of performance to support the future.

Question 12

What is treasury stock?

Answer 12

previously issued stock that has been subsequently repurchased by the corporation

Question 13

Fee-based accounts are generally suitable for kind of accounts?

Answer 13

An account that’s rebalanced frequently

Question 14

What fund has market, exchange, and political risk?

Answer 14

International equity fund

Question 15

What does the SIPC cover?

Answer 15

SIPC covers separate customers.

Question 16

What does good delivery require?

Answer 16

Good delivery requires that certificates be in 100-share units, multiples of 100, or any combination which adds up to 100 shares.

Question 17

What is An accumulation unit in a variable annuity contract?

Answer 17

an accounting measure used to determine the contract owner’s interest in the separate account.

Question 18

How do you find the market cap?

Answer 18

A company’s market capitalization is found by multiplying the market value by the outstanding shares.

Question 19

Who is required to sign a opening account document of a cash account?

Answer 19

FINRA requires only the PRINCIPAL.

Question 20

What Is a Notice of Sale?

Answer 20

For a competitive offering of municipal bonds, the Notice of Sale is created by the issuer to provide potential bidders with information regarding the general characteristics of a proposed bond offering.

Question 21

What is The Efficient Market Hypothesis (Theory)?

Answer 21

Theory) states that financial markets are efficient and that the prices of securities reflect all known information; therefore, it is impossible to outperform or time the market.

Question 22

A customer has recently closed her account. How long is her broker-dealer required to keep records related to her account?

Answer 22

6 years

Question 23

According to current regulations, if a client redeems his mutual fund shares, the fund company must send the payment within:

Answer 23

7 days

Question 24

What is the CTR for?

Answer 24

+$10K in Cash

Question 25

If interest rates are lower in the U.S. than they are overseas what will investors do? Why?

Answer 25

typically lead to U.S. investors investing overseas. This will decrease the demand for the dollar, which results in a weaker dollar and foreign goods being less attractive.

Question 26

What is a specialty fund?

Answer 26

A specialized or specialty fund is a type of a fund that invests primarily in a particular industry or geographical area.

Question 27

What approval is required before a municipality can begin making payments on a moral obligation bond?

Answer 27

Approval by the state legislature