Brainscape's Knowledge GenomeTM

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


See full index

Series 7 > SIE need to work on > Flashcards

SIE need to work on Flashcards

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

restricted stock is registered or unregistered

A

unregistered

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

control stock is registered or unregistered

A

registered

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

Restricted stock held by a nonaffiliate

A

6 month hold sell freely thereafter

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

nonaffilliate means

A

non insider

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

restricted stock held by afilliate

A

6 month hold

volume limits thereafter

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

control stock held by affiliate

A

no hold

volume limits always apply

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

affiliate means

A

insider

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

penny stock

A

unlisted security trading at less than $5 per share

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

nominal yield

A

coupon, nominal, or stated yield is set at the time of issue. Coupon is fixed percentage of bonds par value

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

current yield

A

measures a bond’s annual coupon payment(interest) relative to its market price

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

yield to maturity

A

reflects annualized return if bond is held to maturity.

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

yield to call

A

some bonds are issued with what is known as a call feature. A bond with a call feature may be redeemed before maturity at the issuers option.

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

draw cy ym and ytc

A

pre cy ytm ytc
par
did triange coupon

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

If a potential bond issue is up for competitive bids how long is the waiting time

A

no waiting period

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

If it is a negotiated bid how long is the waiting period

A

this is non-competitive and it is 2 years

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

private investment companies are or are not investment companies

A

are not

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

Associated persons whose activities are limited solely to sales or have only clerical or ministerial functions would

A

not be considered a municipal financial professional

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

For ETFs, the phrase “tax efficiency” can best be described by which of the following concepts?

A

Usually, for ETFs, there are no tax consequences for investors until the shares are sold.

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

Broker/dealers who reserve the right to disclose nonpublic private information about their customers to unaffiliated third parties must

A

provide notice to customers at the time of the account opening and provide reasonable means for customers to opt out of such disclosures

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

An investor who has a short position in 500 shares of JKH common stock would eliminate that position by

A

entering a closing purchase order for 500 shares of JKH

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

A hedge fund having a “lock-up provision” means that

A

investors are required to maintain the investment for a minimum length of time

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

between cds and negotiable cds which of the following are money market instruments

A

only negotiable cds

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

When a firm engages in proprietary trading, buying into and selling out of its own inventory for profit, it is acting as

A

market maker

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

The statute of limitations on fraudulent practices, under the Securities Exchange Act of 1934, is how long

A

is 3 years from the event itself, or one year from its discovery, whichever comes sooner.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Which of the following is a debt instrument that pays no periodic interest

A

Strip

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Which of following securities is least likely to have an active trading market?
A)Real estate investment trusts (REITs)

B)Limited partnership interests

C)Preferred shares

D)Municipal bonds

A

limited partnership interest

27
Q

A party wishing to solicit proxy authority to vote a particular stockholder’s shares must register with

A

the sec

28
Q

A registered representative provides financial support and housing at her home for her grandfather. Regarding the purchase of new issues,

A

Working for a BD, the RR is considered restricted. While grandparents of restricted persons are generally not considered restricted, anyone being provided financial support and/or living under the same roof as a restricted person (as is the case here) is also restricted.

29
Q

The date that the principal amount of a loan is due to be paid back to an investor is known as

A

maturity date

30
Q

Allowing one’s securities to be loaned to others who want to borrow them for the purpose of selling them short would entail

A

signing a loan consent form

31
Q

No credit may be extended in a new margin account with less than

A

2000 in equity

32
Q

A broker-dealer is confronted with margin deposit due but not yet received. The BD can choose to take no action, neither selling out the securities nor requesting an extension, if the amount due is

A

less than 1000

33
Q

____are sometimes offered as “sweeteners” attached to bond issues to improve the marketability of bond.

A

warrents

34
Q

Regarding the purchase of new equity issues (IPOs), restricted persons may

A

not purchase shares of a new issue

35
Q

the firm can take a loss if

A

there was an error on the part of the firm

36
Q

A customer’s account has been frozen. Which of the following is TRUE if the customer wants to purchase more securities?

A

Funds to pay in full must be available in the account before the buy order is entered.

37
Q

When investors open a position by going long the security, they can close the position by

A

selling the security

38
Q

A company that is extensively overleveraged using debt financing whenever available would be exposing its investors to

A

financial risk

39
Q

All of the following are exempt from the Federal Reserve Board (FRB) Regulation T margin requirements EXCEPT

A

corporate stocks

40
Q

An investor having no affiliation with CDS Company has just purchased shares that were sold subject to Rule 144. This investor

A

can sell the shares unrestricted at any time

Selling shares under Rule 144 effectively registers the shares. In other words, buyers of stock being sold subject to Rule 144 are not subject to any restrictions if they choose to resell.

41
Q

Which of the following would lead to a standardized cost-base adjustment for stockholders?

A

dividend

42
Q

A member firm suspects financial exploitation of a senior customer. Which of the following is true regarding actions that can be taken?

A

A trusted contact person if one was named can be contacted and a temporary hold on disbursements from the account can be administered.

43
Q

A registered person has left the securities industry and now holds a manufacturing job. Under what circumstances may this formerly registered person continue to receive commissions from work done at the person’s old firm?

A

A contract must have been signed by the registered person and the firm specifying what commissions are still to be paid.

44
Q

Municipal revenue bonds are

A

not subject to statutory debt limits and do not require voter approval

45
Q

The growth potential in the price of preferred shares is generally considered to be

A

less than that of the issuer’s common shares

46
Q

A barometer of short-term interest rates and one that is therefore considered the most volatile interest rate in the U.S. economy is

A

fed funds rate

47
Q

When a corporation issues a mortgage bond, the issue’s total value

A

should be less than that of the real estate it is backed by

48
Q

Which of the following is an example of an unsecured debt security?

A

debenture and income bond

49
Q

Which of the following require voter approval?

A

municipal general obligation bonds

50
Q

A broker-dealer firm has just rehypothecated a thousand shares of MMS stock. This means

A

the customer pledged the stock to the firm, which has now pledged it to a bank

51
Q

what happens first with options .

Sign agreement or enter order

A

enter order first

15 calander days until options agreement needs to be signed

52
Q

Which of the following would cause a mutual fund’s NAV per share to fall?

A

dividends payed to share holders and market value of portfolio declines

53
Q

Which of the following investment companies has an actively managed portfolio?

A

closed end company

54
Q

Once a customer account has been opened at a broker-dealer, rules require that updating information on the account record occur no less frequently than once every

A

36 months

55
Q

A tombstone advertisement would be expected to include all of the following information EXCEPT

A

any inherent risks associated with the offering or the issuer offering the securities

56
Q

The Securities Act of 1933 requires that all of the following be offered by a prospectus EXCEPT:

A

treasury bonds

Treasury securities are exempt from registration requirements, and therefore do not require a prospectus.

57
Q

Gifts and gratuities directed to those who work at another firm may not be made by a member or associated person for amounts greater than

A

$100 per individual per year

58
Q

Public offerings of securities are regulated under

A

the Securities Act of 1933

59
Q

Which of the following securities are most likely deemed marginable by either the Federal Reserve Board (FRB) or regulatory bodies such as FINRA and the New York Stock Exchange?

A

treasury bonds

60
Q

common stockholders can or cannot vote for authorization or issue of more common shares

A

they CAN

61
Q

Your broker-dealer, rather than clear its own securities transactions, chooses to introduce its business to another firm that will clear, processes and handle all back-office operations for it. The firm receiving the business is known as

A

a carrying firm

62
Q

Secured corporate debt includes

A

mortgage debt

63
Q

A 40-year-old individual is not covered by a retirement plan at work. What is the maximum contribution this individual can make to an IRA this year?

A

The current maximum allowed by the IRS, which will all be deductible if the individual does not exceed the income limit.

64
Q

All of the following are considered unique or nonstandard corporate actions EXCEPT

A

3-1 stock split

Series 7 (27 decks)

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