FINRA SIE Final Exam : FINRA SIE Final Exam Study Guide: Questions & Answers: Updated Solution

Which of the following investments are generally traded according to their average life rather than their stated maturity dates? A. corporate bonds B. government bonds C. asset-backed securities D. fixed-rate capital securities (Ans- C A broker-dealer permitted to accept payment for a new issue from a new customer when the: A. registration is effective B. red herring is delivered C. preliminary prospectus is amended D. transaction takes place during the cooling-off period (Ans- AA registered representative (RR) who wants to place a mutual fund advertisement must obtain written approval from which of the following parties? A. FINRA B. each states securities administrator C. a registered principal of the RR's firm D. the investment management division of the appropriate regional SEC office (Ans- C 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. Such agreements are: 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 (Ans- A