FINRA Series 6 Practice Test Questions with 100% Correct Answers

Stanley is a retired engineer who wants a steady income stream that he can count on. He has a portfolio of investments that range from "Investment grade" To "High Yield" From a quality perspective how does the quality of a bond itself affect the yield that Stanley receives on his investments? Higher yields generally carry a higher degree of risks and price volatility. Features of CMO's Include? -Very High investment ratings -Denominations in increments of $1,000 -Short Medium and long-term traunches When current stockholders have pre-emptive rights they are entitled too? The opportunity to purchase shares before they are available to the public for the ability to maintain a proportionate interest in the company. Joe received confirmation for the purchase of a foriegn company's shares executed on a US. Exchange. What had Joe purchased? American Depository Receipts ADR's What info is not necessary to determine a customer's financial status? Place of birth Owners of which securities receive dividends? ADR's Which type of corporate bond rating is considered safest for an investor? AAA rated UN-secured bond. Monetary policy attempts to control? -Money Supply, Credit in the economy, & Inflation. What is not true about a Warrant? Warrants attached to bonds make the bond more attractive, thus increasing the bond's coupon rate. ADR's are used to facilitate? Domestic trading of foreign securities. Type of risk that includes influences such as competitive pressures, Market share and competence of management, and is usually managed with long term focus is called? Business Risk Ashley wants to purchase a Government issued Bond, so she has chosen series I bonds, what is false about the bond? She will pay $500 for a $1,000 bond ( Series I bonds are sold at Face Value)