AND 100% CORRECT ANSWERS|LATEST
Which of the following items is not reported on a company's income statement?
A. Operating Expenses
B. Corporate Sales
C. Declaration of a cash dividend to stock holders
D. Income net of expenses and interests paid to bondholders - ANSWER C.
Declaration of a cash dividend to stock holders
____________ allows an issuer to sell securities multiple times using the same registration
statement. - ANSWER Shelf Registration
In connection with the solicitation of securities, the anti-fraud rule of U.S. securities law
makes it unlawful to omit a material fact necessary to make the statements made:
A. not misleading
B. understandable
C. confusing
D. deceptive - ANSWER A. not misleading
A married couple want to open a joint brokerage account in which each owner has an
undivided interest in the entire property. If one spouse dies, the other will retain rights to
the entire account. This account will be labeled as:
A. tenancy by the entirety
1
,B. JTWROS
C. conservatorship of the whole
D. free and clear rights of survivorship - ANSWER B. JTWROS
(Joint Tenancy with Rights of Survivorship)
A copy machine technician has learned of a major product recall announcement that will
have a significant impact on corporate profits while working at the site. He contacts several
friends and tells them to dump their stock in this company. In this situation: -
ANSWER Although the technician is not an insider, he has violated his fiduciary
responsibility toward confidential information about this company, and is guilty of
misappropriation of information.
The date on which the interest on a new municipal issue will begin accruing is the:
A. filing date
B. delivery date
C. closing date
D. dated date - ANSWER D. dated date
Scott's broker-dealer was an underwriter in XYZ company's IPO. One year later, Scott wants
to hold shares of XYZ in a discretionary account that he manages for a customer for a fee.
Under FINRA Rule 2269, Scott is required to disclose the underwriting relationship:
A. to the client, in writing
B. to the client, only verbally
C. to the SEC, in writing
D. to the supervisory authority at his broker-dealer - ANSWER A. to the client, in
writing
The contract between a business issuing public stock and its lead underwriter is the:
2
,A. Agreement Among Underwriters
B. Selected Dealer Agreement
C. Underwriting Agreement
D. Trust Indenture - ANSWER C. Underwriting Agreement
As compared to U.S. Treasury securities, U.S. Agency securities:
A. pay interest to investors less frequently
B. have slightly higher yields
C. benefit from tax exemptions on interest payments
D. trade actively in the secondary market - ANSWER B. have slightly higher yields
A firm has sold securities to dealers with the intention of buying back the securities at a
future date. This transaction is an example of a: - ANSWER repurchase agreement
What is the maximum age at which the account owner may contribute to a Roth IRA? -
ANSWER No age limit
A general partner in a limited partnership may engage in which of the following activities?
A. Borrowing money from the partnership
B. Making all investment decisions on behalf of the partnership
C. Competing against the partnership through another investment
D. Continuing the partnership after the departure of a GP without authorization -
ANSWER B. Making all investment decisions on behalf of the partnership
3
, If Paul makes a $5,000 contribution to his Roth IRA, how much will it reduce his taxable
income? - ANSWER Zero
An investor seeking the highest yield being offered on a municipal bond would likely want to
consider a: - ANSWER Port Authority Revenue Bond
The standard default registration method for most securities today is:
A. registered physical certificates
B. street name
C. DRS
D. bearer form - ANSWER B. street name
The typical asset management fee charged by a hedge fund manager is:
A. 1-2% of the assets under management
B. 5% of the assets under management
C. 10% of the assets under management
D. 20% of the assets under management - ANSWER A. 1-2% of the assets under
management
Advantages of book entry form of ownership for U.S. government securities include all of the
following EXCEPT:
A. reduced printing costs for the U.S. government
B. increased protection for investors from loss and theft of securities
C. faster regular way settlement terms than apply to government securities issued in other
forms
4
Which of the following items is not reported on a company's income statement?
A. Operating Expenses
B. Corporate Sales
C. Declaration of a cash dividend to stock holders
D. Income net of expenses and interests paid to bondholders - ANSWER C.
Declaration of a cash dividend to stock holders
____________ allows an issuer to sell securities multiple times using the same registration
statement. - ANSWER Shelf Registration
In connection with the solicitation of securities, the anti-fraud rule of U.S. securities law
makes it unlawful to omit a material fact necessary to make the statements made:
A. not misleading
B. understandable
C. confusing
D. deceptive - ANSWER A. not misleading
A married couple want to open a joint brokerage account in which each owner has an
undivided interest in the entire property. If one spouse dies, the other will retain rights to
the entire account. This account will be labeled as:
A. tenancy by the entirety
1
,B. JTWROS
C. conservatorship of the whole
D. free and clear rights of survivorship - ANSWER B. JTWROS
(Joint Tenancy with Rights of Survivorship)
A copy machine technician has learned of a major product recall announcement that will
have a significant impact on corporate profits while working at the site. He contacts several
friends and tells them to dump their stock in this company. In this situation: -
ANSWER Although the technician is not an insider, he has violated his fiduciary
responsibility toward confidential information about this company, and is guilty of
misappropriation of information.
The date on which the interest on a new municipal issue will begin accruing is the:
A. filing date
B. delivery date
C. closing date
D. dated date - ANSWER D. dated date
Scott's broker-dealer was an underwriter in XYZ company's IPO. One year later, Scott wants
to hold shares of XYZ in a discretionary account that he manages for a customer for a fee.
Under FINRA Rule 2269, Scott is required to disclose the underwriting relationship:
A. to the client, in writing
B. to the client, only verbally
C. to the SEC, in writing
D. to the supervisory authority at his broker-dealer - ANSWER A. to the client, in
writing
The contract between a business issuing public stock and its lead underwriter is the:
2
,A. Agreement Among Underwriters
B. Selected Dealer Agreement
C. Underwriting Agreement
D. Trust Indenture - ANSWER C. Underwriting Agreement
As compared to U.S. Treasury securities, U.S. Agency securities:
A. pay interest to investors less frequently
B. have slightly higher yields
C. benefit from tax exemptions on interest payments
D. trade actively in the secondary market - ANSWER B. have slightly higher yields
A firm has sold securities to dealers with the intention of buying back the securities at a
future date. This transaction is an example of a: - ANSWER repurchase agreement
What is the maximum age at which the account owner may contribute to a Roth IRA? -
ANSWER No age limit
A general partner in a limited partnership may engage in which of the following activities?
A. Borrowing money from the partnership
B. Making all investment decisions on behalf of the partnership
C. Competing against the partnership through another investment
D. Continuing the partnership after the departure of a GP without authorization -
ANSWER B. Making all investment decisions on behalf of the partnership
3
, If Paul makes a $5,000 contribution to his Roth IRA, how much will it reduce his taxable
income? - ANSWER Zero
An investor seeking the highest yield being offered on a municipal bond would likely want to
consider a: - ANSWER Port Authority Revenue Bond
The standard default registration method for most securities today is:
A. registered physical certificates
B. street name
C. DRS
D. bearer form - ANSWER B. street name
The typical asset management fee charged by a hedge fund manager is:
A. 1-2% of the assets under management
B. 5% of the assets under management
C. 10% of the assets under management
D. 20% of the assets under management - ANSWER A. 1-2% of the assets under
management
Advantages of book entry form of ownership for U.S. government securities include all of the
following EXCEPT:
A. reduced printing costs for the U.S. government
B. increased protection for investors from loss and theft of securities
C. faster regular way settlement terms than apply to government securities issued in other
forms
4
