MOCK TEST 5 Flashcards
9 Which company has an actively managed portfolio?
Closed-ended company
11 Which Act provides the legal framework for the registration of securities at the state level?
Uniform Securities Act
Stagnation
prolonged periods of slow or little economic growth accompanied by high unemployment
Stagflation
Which of the following accurately characterizes capital risk?
A: It is the potential for loss due to an issuer’s financial strength
B: It is always high when investigating in government securities.
C: Is is minimal when investing in derivatives, such as options
D: It can be reduced by diversification
D
Which act is the federal law requiring companies offering public equity or debt securities to provide a prospectus to investors?
A broker-dealer that executes trades and settles transactions for another broker-dealer is a?
Which type of preferred stock would pay the highest dividend rate?
Callable
In order for a business entity to qualify as a limited partnership, the LP must have:
at least one general partner and one limited partner
A market order would be filled at what price if the market price of the stock is 40?
The next available price
Companies in defensive industries would be the manufactures of: A: Armored personnel carriers B: Fighter Jets C: Pharmaceuticals D: Automobiles
C
Selling and holding of Restricted (unregistered) stock VS. Non restricted stocks
held by affiliates and non affiliates.
For a U4 registration do you have to list a misdemeanor that is non financial related I.e. Dui and are you subject to statutory disqualification
No reporting on U4 necessary and not subject to disqualification
Two years ago Lisa Smith sold short 100 shares at $50 per share and two years later bought them back for $55 per share. The stock paid a $2.50 dividend each year. How much did Smith gain or lose per share for tax purposes? A: $5 gain B: No gain or loss C: $10 gain D: $5 loss
D When calculating gains and losses for tax purposes dividends are not included in the calculations. So since she sold them for $50 and bought them for $55 that would be a $5 loss
When the grantor has to give up ownership of items placed in the trust, but the structure of the trust may reduce estate taxes, this is describing a:
Irrevocable Trust
What is a Introducing/Fully Disclosed Firm
A firm that chooses to introduce it’s customers’ business to another firm to clear and process transactions, as well as handle all back-office tasks such as sending trade confirmations and taking custody of customer funds and securities
What is a carrying firm?
A firm that receives business from a Introducing firm/Fully disclosed firm to do all back office work and retain customers funds and securities
Benefits of an Exchange-traded Fund (ETF) over a mutual fund:
- Intraday pricing for active traders
- The ability to buy on margin
- lower operating cost than many mutual funds
Which class of shares use a CDSC as the main sales charge?
Class B shares
What is a Municipal Finance Professional (MFP)
an employee of a Financial Industry Regulatory Authority (FINRA) member engaged in municipal security representative activities such as underwriting and trading
