Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Series 7 > series 7 brian lee > Flashcards

series 7 brian lee Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 7 Top-off Exam flashcards
1
Q

Suitability chart

A

Growth (cap appreciation)
large cap
small cap(agressive)
diversity(international stocks)

moderate- balance equity

income
corp bonds
preferred stock
blue chips
reits

conservative
bills bonds notes
bond ladder

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Stabilizing bids must not be made

A

at a price higher than the public offering price (POP).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

rule 5130 classifies a ristricted person as

A

member firms
employees of member firms
any person owning 10% or more of member firm
portfolio managers
finders and fiduciaries acting on behalf of managing underwriter

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Whether a first-year firm or not, retail communications for investment companies (including mutual funds, variable contracts, and unit investment trusts) that include
a ranking or a comparison that is generally not published or is the creation of the investment company or the member must be filed with FINRA at least

A

10 business days before first use (pre-filing).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

EXEMPT ISSUERS AND SECURITIES

A

Among the exemptions are the following issuers:
■ The U.S. government
■ U.S. municipalities and territories
■ Nonprofit religious, educational, and charitable organizations
■ Banks and savings and loans
■ Public utilities and common carriers whose activities are regulated as to rates and other items by a state or federal regulatory body

Commercial paper—maturity less than 270 days
■ Bankers’ acceptances—maturity less than 270 days
■ Securities acquired in private placements—restricted stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

trust indenture.

A

series of promises between the issuer and the trustee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

rule 144 breakdown

A

RS(unregistered) held by nonafilliate(noninsider)
6 month
sell freely after

rs(unregis) held by affilate(insi)
6 month hold
volume limits after

control stock(registered)
held by affiliate(insider)
no hold
vol limits apply

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

EPS

A

earnings available to common

/number of shares outstanding

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

dividend payout ratio

A

annual divs per common share

/eps

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

is responsible for setting the opening quote for issues listed on the NYSE.

A

designated market maker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Tax consequences for options

A

same sp-p or sp+ pr

bullish is cost basis
bearish is sale proceeds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

leaps contract margin requirement is

A

100% of the premium

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

An issuer will call the

A

higher coupon bonds before calling the lower coupon bonds.

the one with lower price is more likely to be called

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

All of the following are minimum requirements for listing on the NYSE EXCEPT:

A

there is no minimum earnings per share requirement. However, there is a minimum earnings requirement.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

The author received royalties as a result of an active trade or business, therefore the payments are considered

A

earned income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

To determine the parity price of the common

A

1000/conversion price

current price/conversion ratio after

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

interest earned on GNMA is taxable at

A

federal, state, and local levels.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

In a competitive bidding situation, each underwriter submits a sealed written bid. Once the bid has been awarded, the bonds are repriced to give the underwriters a profit when selling them to the public. The yield at which the bonds are sold is called

A

reoffering yield

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

To note that a sell order is long, a broker/dealer must either have

A

the stock in its possession or have reasonable assurance that the customer owns the stock and will deliver it promptly.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q 
Which of the following are qualified plans?
Payroll deduction.
Deferred compensation.
Defined benefit.
Defined contribution.
A

Defined benefit.

Defined contribution.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

taxes and the 529 and cordevel

A

both are after tax so the contributions are not tax deductable.

22
Q

All of the following may be used to service special tax bond issues

A

such as gasoline, cigarettes, liquor, and business licenses

23
Q

closed end shares trade where

A

exchanges and otc

24
Q

The Bond Buyer’s Revenue Index is an

A

average yield of 25 revenue bonds with 30 years to maturity.

25
Q

A price spread same thing as

A

vertical spread

26
Q

what cannot be altered according to msrb

A

the rules regarding the content of confirmations.

27
Q

net revenue pledge order of what is paid

A

operations and maintenance are paid first, with debt service following

28
Q

gross revenue pledge order what is paid

A

debt service and then operations and maintenance

29
Q

The POP for a mutual fund as quoted in the financial press reflects:

A

the maximum sales charge the fund distributor collects.

30
Q

tax equiv yield

A

taxable yield) x (100% - tax bracket)

31
Q

Typically, general obligation bonds are not sold short because:

A

thin markets may make it difficult to cover a short municipal position.

32
Q 
All of the following would flow through as a loss to limited partners EXCEPT:
A)
depletion.
 B)
accelerated depreciation.
 C)
interest payments on recourse debt.
 D)
principal repayment on recourse debt.
A

interest payments deductable

principal is not

33
Q

In both exchange and OTC markets, traders can sell short

A

any time without any consequence

34
Q

The Act of 1934 created the SEC

33 is for

A

required the registration of broker/dealers, empowered the Federal Reserve to control the extension of credit on securities transactions, and created rules dealing with secondary market trading.

new issues, prospectus

35
Q

re-filing with FINRA is not required if

A

If unaltered and used as it was originally intended

36
Q

The Code of Arbitration Procedure would be mandatory to settle disputes between:

A

Disputes between anyone in the industry, including registered clearing corporations, must go to arbitration, with the exception of statutory discrimination claims,

37
Q

The Trust Indenture Act of 1939 is applicable to corporate debt issues that are

A

nonexempt, are over $50 million to be issued within 12 months, are offered interstate, and have maturities of 9 months or more.

38
Q

If a book author receives royalty payments from a publisher, the payments will be taxable as which of the following types of income?

A

Earned income

39
Q

The interest on municipal debt is largely exempt from

A

taxation, but not capital gains. Municipal bond investors who buy low and sell high will have capital gains to report.

40
Q

some issuers establish a sinking fund account to

A

accumulate funds to pay off term bonds at or before the established maturity date

41
Q

highly rated or lowly rated issuers establish sinking funds

A

low do it so its more marketable

42
Q

statutory debt limit protects

A

taxpayers from excessive taxes

and can make a bond safer

43
Q

limited tax goes

A

bond securued by a specific tax. limited to what tax can be used

44
Q

voter approval for goes are revs

A

goes

45
Q

trust indentures required?

A

no munis are exempt. enhances marketability.

46
Q

interest taxable for IDRS or IDBS

A

yes because the act reserves tax exemption for public purpose

if used for non public purpose it may be subject to alternative minimum tax

47
Q

AMT

A

Congress enacted the AMT to make certain that high-income taxpayers do not escape paying taxes. Certain items receive favorable tax treatment. These items must be added back into taxable income for the AMT. These tax preference items include:

certain costs associated with DPPs, such as research and development costs and IDCs;
■ local tax and interest on investments that do not generate income;
■ tax-exempt interest on private purpose, nonessential government service municipal bonds; and
■ incentive stock options exceeding their FMV.

48
Q

PHAS or NHAS only

A

issues backed in full by us gov. also called section 8 bonds

49
Q

bans

A

are sold as interim financing that will eventually be converted to long-term funding through a sale of bonds.

50
Q

tans

A

is often used in place of BANs and TANs for up to 270 days, though maturities are most often 30, 60, and 90 days

Series 7 (27 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions