Series 79 - Knopman with correct answers graded A+ 2024

Series 79 - Order the following in terms of credit risk: 1. GSEs 2. Gov't Agency MBS / Treasury securities 3. Private label MBS - correct answer 1. Gov't Agency MBS / Treasury Securities - backed by the full faith and credit of the US gov 2. GSEs (Fannie, FNMA and Freddie, FHLMC) - not backed by the full faith and credit of the US gov but have special authority to borrow from the US Treasury, an implied guarantee 3. Private label MBS - have no government backing Ginnie Mae - correct answer Agency securities backed by the full faith and credit of the US gov. and second in safety of principal only to Treasury securities Individuals who possess inside information CANNOT trade on that information while it remains undisclosed. Why is this insider trading? - correct answer Because the information is UNDISCLOSED TO THE INVESTING PUBLIC so it is illegal insider trading Broker-dealers MUST / MAY NOT maintain records of all non-cash compensation (such as reimbursed travel expenses; e.g. hotel, airfare, etc) received in connection with an underwriting - correct answer MUST What does MLP stand for? What are the benefits? - correct answer Master LIMITED PARTNERSHIP Benefits: 1. tax benefits of a limited partnership AND 2. liquidity of publicly traded securities