Series 24 Warm-Up Test

Question 1

The following dealer quotes for XPL, a Global Market stock, appear in Level II of NASDAQ:
14.50-15.13
14.50-15.25
14.50-15.38
How would Level 1 show the quote?

Answer 1

14.50-15.13

Question 2

Member firms may contract with a non-member in underwriting

Answer 2

municipal bonds

Question 3

During the waiting period for an IPO of common stock, a member firm in the underwriting group is permitted to do which of the below?

Answer 3

Accept indications of interest

Question 4

A trade in XYZ stock between 2 market makers in that stock, takes place at 5 pm ET. A transaction report must be made to the appropriate trade reporting facility

Answer 4

within 10 seconds

Question 5

The maximum public offering permissible under Regulation A + is

Answer 5

$50 mm

Question 6

Stabilizing bids can be made

Answer 6

1. below the public offering price
2. at the public offering price

Question 7

To protect the national interest, the SE Act of 1934 regulates which of the below?

Answer 7

Fair and orderly trading markets, both OTC and securities exchanges

Question 8

Which of the below is allowed when holding a customer limit order to buy at 21?

Answer 8

1. executing a sell order at 21 for the firm’s trading account
2. executing another customer buy order at 21
3. executing a sell order at 21 for the firm’s investment account

Question 9

SEC Regulation FD covers

Answer 9

the selective disclosure of material nonpublic information

Question 10

A trade was executing for 500 shares of AMDK, an OTC Equity Security. The trade report would most likely be make on which FINRA facility?

Answer 10

ORF

Question 11

Which of the below are covered under the holding period requirements of Rule 144 of the Securities Act of 1933?

Answer 11

1. Unregistered securities held by a noncontrol person
2. Unregistered securities held by a control account

Question 12

A customer purchase securities issues by a unit investment trust. How many days after the offering may they be margined?

Answer 12

30

Question 13

Which of these instructions can be described as a discretionary order?

Answer 13

Buy 500 shares of a computer company’s stock

Question 14

Under the UPC, partial delivery of common stock in an interdealer trade

Answer 14

is acceptable as long as the amount remining to be delivered does not include an odd lot

Question 15

Regulation AC (Analyst Certification) applies to research reports on which covered security?

Answer 15

1. common stock
2. convertible debt securities
3. nonconvertible debt securities