FINRA Practice Exam Questions with
Complete Solutions8
In the event of a stock split, which of the following parties is required to maintain a record of
the shareholders eligible to receive the additional shares?
A: DTC
B: Issuer
C: Custodian
D: Transfer Agent - ANSWERS-D: Transfer Agent
Broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in which
the mayor is currently seeking re-election. A municipal finance professional who resides in the
town and works for ABS contributed $200 to the mayor's re-election campaign 13 months ago.
If the employee wants to support the campaign further without impacting the municipal
securities business of the firm, he is permitted to make an additional contribution of up to what
amount?
A: 50
B: 100
C: 150
D: 250 - ANSWERS-A: 50
The redemption value of an open-ended investment company's shares is based on the:
A: previous offering price
B:previous closing NAV
C:NAV computed after the order is received
D: offering price computed after the order is received - ANSWERS-C:NAV computed after the
order is received
, The primary purpose of a syndicate desk in the context of an equity offering is to:
A: determine the list of selling shareholders
B: build an order book and allocate the stock
C: solicit interest from investors in the stock offering
D: chaperone company management during the road show - ANSWERS-B: build an order book
and allocate the stock
Roth 401(k) and Roth IRA plans share which of the following features?
A: contributions are made pretax
b: neither account has max contribution limits
C: neither account is subject to early distribution penalties
D: qualified distributions are excluded from federal income tax - ANSWERS-D: qualified
distributions are excluded from federal income tax
All of the following risks apply to both foreign and domestic debt instruments except:
A: political
B: exchange
C: repayment
D: interest rate - ANSWERS-C: repayment
Direct Participation Programs (DPP) provide:
A: liquidity and transparency
B: exposure to non-correlated assets w/ steady returns
C: market related correlations w/ higher average returns
D: investors w/ direct purchases of stock from public companies - ANSWERS-B: exposure to non-
correlated assets w/ steady returns
Complete Solutions8
In the event of a stock split, which of the following parties is required to maintain a record of
the shareholders eligible to receive the additional shares?
A: DTC
B: Issuer
C: Custodian
D: Transfer Agent - ANSWERS-D: Transfer Agent
Broker-dealer ABC seeks to underwrite a municipal securities offering by a local town in which
the mayor is currently seeking re-election. A municipal finance professional who resides in the
town and works for ABS contributed $200 to the mayor's re-election campaign 13 months ago.
If the employee wants to support the campaign further without impacting the municipal
securities business of the firm, he is permitted to make an additional contribution of up to what
amount?
A: 50
B: 100
C: 150
D: 250 - ANSWERS-A: 50
The redemption value of an open-ended investment company's shares is based on the:
A: previous offering price
B:previous closing NAV
C:NAV computed after the order is received
D: offering price computed after the order is received - ANSWERS-C:NAV computed after the
order is received
, The primary purpose of a syndicate desk in the context of an equity offering is to:
A: determine the list of selling shareholders
B: build an order book and allocate the stock
C: solicit interest from investors in the stock offering
D: chaperone company management during the road show - ANSWERS-B: build an order book
and allocate the stock
Roth 401(k) and Roth IRA plans share which of the following features?
A: contributions are made pretax
b: neither account has max contribution limits
C: neither account is subject to early distribution penalties
D: qualified distributions are excluded from federal income tax - ANSWERS-D: qualified
distributions are excluded from federal income tax
All of the following risks apply to both foreign and domestic debt instruments except:
A: political
B: exchange
C: repayment
D: interest rate - ANSWERS-C: repayment
Direct Participation Programs (DPP) provide:
A: liquidity and transparency
B: exposure to non-correlated assets w/ steady returns
C: market related correlations w/ higher average returns
D: investors w/ direct purchases of stock from public companies - ANSWERS-B: exposure to non-
correlated assets w/ steady returns
