TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
FINRA Practice Exam Questions and
Answers | 100% Correct | Verified and
Updated
A savings account at a bank is guaranteed by which of the follow entities?
A) FDIC
B) SIPC
C) FED RES
D. Department of the treasury
✔️✔️Correct-A
A firm is a participant in a public offering. To sell a Substantial amount of the securities
to its customers, the firm agrees to repurchase the shares at no less than the original
sales price.
A. Prohibited as fraudulent and manipulative
B. Permissible if the securities are deposited into escrow
C. Prohibited unless the firm immediately sets aside funds for the repurchase
D. Permissible if the customers retain the right to sell the securities into the open market
✔️✔️Correct-A
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,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
The computation of dollar prices and accrued interest on municipal bonds is normally on
what calendar basis?
A. 30/360
B. 30/365
C. Actual 360
D. Actual 365
✔️✔️Correct-A
Which of the following comparisons BEST describes the essential difference between a
primary distribution and a secondary distribution?
A. A primary distribution can only be made for equity issues while a secondary
distribution can be made for both equity and debt issues
B. A primary distribution can only be made of issues that exceed a specified dollar
amount while a secondary distribution can be made for issues of all sizes
C. A primary distribution must be made at a fixed public offering price (POP) while a
secondary distribution must be made at the current market price
D. A primary distribution involves a sale of newly issued shares by the issuer while a
secondary distribution involves the sale of already issued and outstanding shares.
✔️✔️Correct-D
Which of the following investments are generally traded according to their average life
rather than their stated maturity dates?
2/123
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
A. Corporate bonds
B. Government bonds
C. Assets-backed securities
D. Fixed-rate capital securities
✔️✔️Correct-C
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is
valid for what maximum period of time?
A. 3 months
B. 6 months
C. 13 months
D. 24 months
✔️✔️Correct-C
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100
shares of ABC stock for $35 per share. The customer will break even when the stock is
selling at what price per share at expiration?
A. $3
B. $32
C. $35
D. $38
✔️✔️Correct-D
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, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Which of the following form U4 reportable events results in a statutory disqualification?
A. A personal bankruptcy filing
B. A written customer complaint alleging misappropriation of assets
C. A felony theft charge
D. A felony conviction for a driving under the influence (DUI) charge
✔️✔️Correct-D
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the
following products does a corporation issue?
A. Puts
B. Rights
C. Futures
D. Preferred Stock
✔️✔️Correct-B
When a broker-dealer charges a commission on a securities transaction, it has acted
as:
A. an agent
B. a principal
C. an underwriter
D. a market maker
✔️✔️Correct-A
4/123
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
FINRA Practice Exam Questions and
Answers | 100% Correct | Verified and
Updated
A savings account at a bank is guaranteed by which of the follow entities?
A) FDIC
B) SIPC
C) FED RES
D. Department of the treasury
✔️✔️Correct-A
A firm is a participant in a public offering. To sell a Substantial amount of the securities
to its customers, the firm agrees to repurchase the shares at no less than the original
sales price.
A. Prohibited as fraudulent and manipulative
B. Permissible if the securities are deposited into escrow
C. Prohibited unless the firm immediately sets aside funds for the repurchase
D. Permissible if the customers retain the right to sell the securities into the open market
✔️✔️Correct-A
1/123
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
The computation of dollar prices and accrued interest on municipal bonds is normally on
what calendar basis?
A. 30/360
B. 30/365
C. Actual 360
D. Actual 365
✔️✔️Correct-A
Which of the following comparisons BEST describes the essential difference between a
primary distribution and a secondary distribution?
A. A primary distribution can only be made for equity issues while a secondary
distribution can be made for both equity and debt issues
B. A primary distribution can only be made of issues that exceed a specified dollar
amount while a secondary distribution can be made for issues of all sizes
C. A primary distribution must be made at a fixed public offering price (POP) while a
secondary distribution must be made at the current market price
D. A primary distribution involves a sale of newly issued shares by the issuer while a
secondary distribution involves the sale of already issued and outstanding shares.
✔️✔️Correct-D
Which of the following investments are generally traded according to their average life
rather than their stated maturity dates?
2/123
,TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
A. Corporate bonds
B. Government bonds
C. Assets-backed securities
D. Fixed-rate capital securities
✔️✔️Correct-C
Under normal circumstances, a customer's letter of intent on a mutual fund purchase is
valid for what maximum period of time?
A. 3 months
B. 6 months
C. 13 months
D. 24 months
✔️✔️Correct-C
A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100
shares of ABC stock for $35 per share. The customer will break even when the stock is
selling at what price per share at expiration?
A. $3
B. $32
C. $35
D. $38
✔️✔️Correct-D
3/123
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
Which of the following form U4 reportable events results in a statutory disqualification?
A. A personal bankruptcy filing
B. A written customer complaint alleging misappropriation of assets
C. A felony theft charge
D. A felony conviction for a driving under the influence (DUI) charge
✔️✔️Correct-D
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the
following products does a corporation issue?
A. Puts
B. Rights
C. Futures
D. Preferred Stock
✔️✔️Correct-B
When a broker-dealer charges a commission on a securities transaction, it has acted
as:
A. an agent
B. a principal
C. an underwriter
D. a market maker
✔️✔️Correct-A
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