- Exam 1
Last Modified: 2012-04-12
I. It may be quoted on the OTC Bulletin Board
II. It may only be quoted in the OTC Pink market.
III. Firm quotes would no longer be available.
IV. Fir quotes may still be available.
a. Closed-end investment company
b. Exchange-traded notes
c. Hybrid REIT
d. A direct participation program
a. ETNs are debt instruments linked to the performance of a commodity, currency, or index.
b. ETNs are equity securities that pay a large dividend.
c. ETNs are mutual funds that invest in debt instruments.
d. ETNs are equity securities that represent ownership of a securities exchange.
a. July 11, 20XX
b. August 1, 20XX
c. August 11, 20XX
d. September 1, 20XX
a. A $350 contribution to a New Jersey gubernatorial candidate
b. A $200 contribution to a Philadelphia, PA mayoral fundraiser
c. A $250 contribution to the mayor's reelection committee in her hometown
d. None of the above
I. The minimum sales load should be stated in the ad.
II. The maximum sales load should be stated in ad.
III. Sales charges may not be reflected in performance data.
IV. Sales charges may be reflected in performance data.
a. $100 to a candidate for whom you may vote
b. $100 to a candidate for whom you may not vote
c. $500 to a candidate for whom you may vote
d. $500 to a candidate for whom you may not vote
I. An investor who does not seek present additional cash flow
II. An investor who seeks the tax benefits of long-term capital gains
III. An investor who needs cash for living expenses.
IV. A custodian acct where the parent of the minor child is in the highest tax bracket?
a. A client in a high tax bracket who is purchasing the annuity for his spouse's retirement needs
b. A client in a high tax bracket who is purchasing the annuity for short-term liquidity needs
c. A client who is purchasing the annuity in a 401K for retirement
d. A client who is purchasing the annuity in order to have the funds available by the age of 50
I. Penny stock trading
II. Trading in high-yield bonds
III. Day trading
IV. Online trading
a. The Municipal Securities Rulemaking Board
b. The state sponsoring the municipal fund securities investment program
c. A principal of the firm who is selling the program
d. The portfolio manager of the municipal fund security investment
I. The carrying firm validates the transfer instructions
II. The customer is informed of any nontransferable securities
III. The carrying firm sends the customer's securities to the receiving firm
IV. The customer provides a written transfer request to the receiving firm
a. The program must comply with a blueprint or template supplied by the SEC
b. The program must be designed to comply with the Bank Secrecy Act.
c. The program must provide for annual testing of the system.
d. The firm must designate a specific individual response for implementing the firm's anti-money laundering program and must identify the person to FINRA.
a. Avoid margin deficiencies
b. Assume greater leverage
c. Trade directly with market makers
d. Trade without depositing funds until the securities decline in value
a. The options exchange
c. The SEC
d. The OCC
a. $25,000, which the client has five business days to deposit
b. $25,000, which must be deposited before the client may continue day trading
c. Four times the maintenance requirement for the account
d. $2,000 or 100% of the short market value
a. Through the EMMA system
b. Through the TRACE system
c. Directly from the issuer
d. From the OATS system
a. Non investment-grade corporate bonds
b. Rule 144A securities
c. Investment-grade corporate bonds
d. GSE bonds
I., Only the seller is required to report the transaction
II. Both the buy and the seller involved in the transactions are required to report it
III. The system is used for corporate debt
IV. The system is used for municipal debt
I. Purchases may be executed in a cash or margin account
II. Short sales may be executed in a cash or margin account
III. Short sales may only be executed in a margin account
IV. Leveraged ETFs can only be purchased in a margin account
a. A fund does not charge a 12b-1 fee
b. Dollar cost averaging assures long-term growth
c. Funds of competitors have higher expense ratios
d. The investment adviser has 20 years experience
a. Trade Reporting and Compliance System
b. Order Audit Trail System
c. Trade Reporting and Compliance Engine
d. Real-Time Transaction Reporting System
I. An imbalance of orders
II. A very low number of trades
III. Highly volatile prices
IV. The quotes of market makers being updated very quickly
a. An Easy to Borrow List
b. A Hard to Borrow List
c. A Threshold Security List
d. A Restricted Stock List
a. The cost of a coach flight for a portfolio manager to attend a conference
b,. The cost of a conference concerning the future of the computer software industry
c. The cost of computer terminals used to deliver market data services
d. A percentage of the salaries of the adviser's internal research staff
a. A registered principal
b. The SEC
c. The sponsor of the mutual fund
d. A compliance officer
a. Sells his firm's client list to nonaffiliated broker-dealers without his firm's permission
b. Engages in private securities transactions outside his regular scope of employment without permission.
c. Sells securities through his firm in a financial product not created by his firm.
d. Purchases speculative securities for his own account
I. A registered person is leaving the country on a business trip for more than 3 months.
II. A registered principal is serving on the board of directors of a private company.
III. A registered person wants to act as a consultant for a private placement of a security that is not being offered by her broker-dealer
IV. A registered principal intends to purchase corporate securities in a personal account established at her employing broker-dealer.
a. Execution of an order only
b. Cancellation of an order only
c. Time an attempt was made to place an order
d. Entire life of an order that is accepted by a member firm
a. Does not constitute an official complaint since the electronic device is not an official broker-dealer contact channel and its used for business is typically prohibited
b. Is a complaint and must be maintained by the broker-dealer
c. Is a complaint and must be forwarded to the appropriate SRO
d. Must be followed up within 10 business days by a written document from the client to be considered an official complaint
a. Within one business day of receipt of the transfer instructions
b. Within 3 business days of validation of the transfer instructions
c. Immediately upon receipt of the transfer instructions
d. Immediately upon validation of the transfer instructions
a. The impact of a disruption of the firm's counterparties
b. The home addresses and phone numbers of key employees
c. Regulatory reporting
d. Alternative locations for employees
a. If Merlin fails to sell its allotment, it will be liable for 2x normal commitment
b. If Merlin fails to solicit a certain number of indications of interest, it will be required to pay a fee to the syndicate manager.
c. If Merlin sells some of the issue to a customer, who later sells the stock back to the syndicate at the stabilizing bid, Merlin will forfeit concession.
d. If Merlin sells some of the issue to a customer, who later sells the stock back to the syndicate at the stabilizing bid, Merlin could be pen
a. Private placement under Regulation D
b. An intrastate offering under Rule 147
c. A traditional registration statement
d. A shelf registration under Rule 415
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