Numbers

Question 1

Any concession earned by the member selling the shares must be returned to the principal underwriter of the fund if the shares are redeemed within…

Answer 1

7 business days

Question 2

dividends to be taxed as qualified dividends must be held for…

Answer 2

more than 60 days

Question 3

If a registered representative is found to have engaged in insider trading, under criminal penalties the registered representative can be fined up to 3 times the profit gained or loss avoided, or

Answer 3

$5 million, whichever is greater

Question 4

Maximum Duration for shelf offerings stock…

Answer 4

3 years

Question 5

Open-End (mutual funds) max sales charge…

Answer 5

8.5%

Question 6

Cont. Edu. Regulatory Element

Answer 6

Must be completed within 120 days of persons 2nd registration anniversary and every 3 years after that

Question 7

Funded Debt

Answer 7

Any long term debt payable in 5 years or more

Question 8

I Bonds earn interest for…

Answer 8

30 years

Question 9

Over-Allotment

Answer 9

Gives underwriter right to sell up tot 15% of original shares if high demand and issuer agrees

Question 10

Gift Limits

Answer 10

Not taxed up to $14,000

Question 11

Maximum Underwriting Compensation

Answer 11

10%

Question 12

CMO Interest Payments

Answer 12

Monthly

Question 13

Change in customers status must be changed with in….

Answer 13

30 days of receipt

Question 14

Price to Earnings Ratio

Answer 14

Market Price/Earnings Per Share

Question 15

Simplified arbitration is available for claims of $_______or less. The statute of limitations for filing a claim is ___ years from the event giving rise to the claim.

Answer 15

$50,000 or less and 6 years

Question 16

To make a public offering, a registered investment company must have a minimum net worth of

Answer 16

$100,000

Question 17

All securities licenses become null and void once an individual is unaffiliated for more than

Answer 17

2 years

Question 18

Forms of communication with the public (lectures and speeches) must be kept for at least…

Answer 18

3 years (readily available for 2)

Question 19

Regulation T requires payment from a customer in a margin account:

Answer 19

Within 5 business days

Question 20

A sound debt service (interest and principal) coverage ratio for municipal revenue bonds is

Answer 20

2 to 1

Question 21

Open End Investment Companies disperse capital gains….

Answer 21

Annually

Question 22

RevDex

Answer 22

25 Revenue Bonds with 30 year maturities (published weekly)

Question 23

GNMA are….

Answer 23

• Issued in $1000 minimums

* Pay dividends monthly

Question 24

a new issue may not be purchased on margin for the first _____ calendar days following the public offering date.

Answer 24

30

Question 25

Rule 144

Answer 25

1% of the outstanding shares

or the weekly average of the last 4 weeks trading volume (whichever is greater)

Question 26

A mutual fund must distribute ________ of its net income to avoid taxation

Answer 26

90%

Question 27

The broker/dealer can hypothecate _______ of the customer’s outstanding balance.

Answer 27

140%

Question 28

The carrying firm must transfer the positions within _______ business days of validation

Answer 28

3 business days

Question 29

A Tier 1 securities offering under Regulation A+ allows small to medium sized companies to…

Answer 29

$20 million in a year

Question 30

Rule 147

Answer 30

6months

Question 31

Customer Statements must be sent…

Answer 31

Quarterly

Question 32

Mutual fund board of directors members must serve a term of at least

Answer 32

1 year