Series 79 with correct answers 2024

Series 79Securities Act of 1933 - correct answer Requires investors to receive significant and material nonpublic information concerning securities being offered for public sale; prohibits deceit, misrepresentations, and other fraud in the sale of securities to the public Securities Exchange Act of 1934 - correct answer Regulates US financial markets and their participants (i.e. the secondary market); prohibits fraud in secondary-market transactions Auction marketplace (include example) - correct answer Trades are directed to the exchange floor by telephone or electronically, and a broker matches interested buyers and sellers (e.g. NYSE) What types of firms are traded on NYSE? - correct answer Well-established companies and industrial firms (i.e. blue chip stocks) What is a dealer or negotiated market (include example)? - correct answer Dealers stand ready to buy or sell securities from other market participants and profit from the spread. Participants are usually joined through electronic networks (e.g. Nasdaq). What types of firms are traded on Nasdaq? - correct answer High tech firms that deal with Internet or electronics OTC market (include examples) - correct answer These also rely on market makers that stand ready to buy or sell shares. These stocks are often issued by small companies or those that no longer meet the more stringent listing requirements of the NYSE or Nasdaq (e.g. OTCBB and OTC Pink). Third market - correct answer Over-the-counter, negotiated-price trading of exchange-traded securities Fourth market - correct answer Direct trading of large blocks of securities between institutions and/or retail investors through electronic communication networks (ECNs). What is an example of a price-weighted index? - correct answer DJIA What is an example of a capitalization-weighted index? - correct answer S&P 500 Dow Jones Industrial Average (DJIA) - correct answer Price-weighted index of 30 blue chip US stocks of industrial companies NYSE Composite Index - correct answer Tracks the price movements of all common stocks listed on the NYSE S&P 500 - correct answer Capitalization-weighted index of 500 large-cap US stocks Wilshire 5000 Total Market Index - correct answer Capitalization-weighed index intended to measure the entire US stock market Russell 2000 Index - correct answer Capitalization-weighted index that measures the performance of the 2000 smallest publicly traded US companies by market cap Nasdaq-100 Index - correct answer Modified capitalization-weighted index designed to track the performance of a market consisting of the 100 largest and most actively traded non-financial domestic and international securities listed on Nasdaq, by market cap Real economic growth - correct answer Year-over-year change in GDP adjusted for inflation or deflation Effect of rising interest rates on stocks and real estate - correct answer Stocks do best when inflation is low or moderate and fall in times of either high inflation or deflation; inflation brings higher asset values that brings a positive correlation between real estate and inflation Business/economic cycle - correct answer Recurring pattern of fluctuation in economic activity ranging over several months to a number of years. Its timing is random and level of severity is unpredictable.