Which of the following is TRUE concerning the beneficiary of a Coverdell ESA? Contributions can be made until age 18 and must be used by age 30. 4% The reason for termination Municipal securities

Contributions can be made until age 18 and must be used by age 30.

Which one of the following persons is permitted to purchase an equity IPO in her personal account? The cousin of a registered representative Par value plus accrued interest The brother of a registered person of a broker-dealer who has an account with a different broker-dealer Sell Limit @ 60

The cousin of a registered representative

Securities and Investment Regulations

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Finance - Personal Finance

georgepetenjk Created by 10 mon ago

Cards in this deck(85)

Which of the following is TRUE concerning the beneficiary of a Coverdell ESA?

An investor bought stock on Thursday, August 29. If the following Monday is a federal holiday, when will the trade settle?

Which of the following is responsible for updating state securities laws?

What is the required annual income for a married couple to be considered an accredited investor under Regulation D?

A Regulation D offering may be sold to a maximum of:

If an annuitant cancels her variable annuity during the accumulation period, she may be required to pay which of the following?

If a person fails a qualification exam on her third attempt, for how long is she required to wait before retaking that same exam?

Which of the following choices is a characteristic of preferred stock?

Which one of the following persons is permitted to purchase an equity IPO in her personal account?

A corporation that has issued common or preferred stock has created:

A sales breakpoint of a mutual fund is:

If an investor buys 1 XYZ Aug 40 put for $5 and also buys 100 shares of XYZ for $40 per share, what's her breakeven point?

Customer account statements will include:

A rise in the prices of several key goods and services would be an indicator of:

For a person who has a variable life insurance policy, which of the following risks is of the greatest concern?

Listed equity options cease trading at:

Federal and state registration requirements apply to all of the following, EXCEPT:

FINRA requires a registered representative to notify his broker-dealer if he's involved in which of the following activities?

If a convertible bond is converted, the investor will receive:

How are in-the-money S&P 500 Index call options settled at expiration?

A bond has a 6% coupon and is trading with an 8.34% basis. The bond is trading at which of the following price levels?

What's the most typical method of acquiring control stock of a corporation?

Under the New Issue Rule, all of the following persons are defined as restricted persons, EXCEPT:

Which of the following is permitted to act as agent for a FINRA registered broker-dealer?

If a bond is currently selling for less than par value, then:

Which of the following is considered a private securities transaction for an associated person?

Which of the following statements regarding exchange-traded funds (ETFs) is TRUE?

Class A shares of an open-end investment company are different from Class B shares in that:

Exchange-traded notes are most susceptible to which risks?

Repurchase agreements (repos) and reverse repos would MOST likely be used by:

It is most beneficial to the holder of a call if the price of the underlying security is:

Joan owns 100 shares of XYZ, which is currently trading at $57 per share. She wishes to liquidate the position when she can receive $6,000 from the trade. Which of the following orders is the BEST choice to fulfill Joan's intentions?

A customer contacts her registered representative to buy an OTC stock. Rather than buying it directly from a market maker, the broker-dealer contacts another broker-dealer, who buys it from a market maker creating two levels of transaction fees. This is known as:

A 529 plan may be offered by which of the following methods?

Prior to the maturity of a variable-rate demand obligation, an investor has the right to receive the:

When a broker-dealer is not acting for its own account but is making securities transactions for the accounts of others, the firm is acting as a(n):

By using a dollar-cost averaging investment strategy, an investor will generally find the:

Which of the following statements regarding warrants and rights are TRUE?

The time at which an employee is eligible to receive at least some of the retirement benefits that have been contributed to the plan by the employer is referred to as:

The BG mutual fund has a NAV of $11.72 and an offering price of $12.67. What is the sales charge for this fund?

Deposits of cash that are held at a bank are insured by which of the following?

Many investors prefer to receive variable annuity payments under the straight-life payout option because it:

A facility is created by the issuance of industrial development revenue bonds. The bonds are backed by:

An investor purchases 1,000 shares of ABC stock at $30 per share and receives an annual dividend of $1.20. After one year, the stock's market value has increased to $36 per share. What is the investor's total return?

Jim sits on the board of directors of a corporation. He has told his neighbor that his company will soon announce a revolutionary new product that should double the company's revenues. As a result, his neighbor purchases the stock. Jim does not purchase shares of the company. Who may be liable for violating insider trading restrictions?

A disciplinary action concerning a registered representative (RR) is reported by the firm through which of the following?

Three basis points are equal to:

A customer executing a short sale anticipates:

Which document is a customer required to sign in order for a broker-dealer to secure a bank loan to cover the customer's margin account?

Which entity maintains a record of the shareholders that are eligible to receive additional shares after a stock split?

Which of the following statements is TRUE regarding REITs?

Which of the following is the rate that's charged on overnight loans between commercial banks?

Which of the following statements is TRUE for a bond trading at par?

A portfolio manager has recently taken his client's equity holdings out of technology stocks and moved them into manufacturing stocks. The manager has historically moved client funds from one industry to another during defined periods. What is this type of strategy called?

Which of the following activities by a market maker is NOT prohibited by FINRA's Anti-Intimidation/Coordination Interpretation?

A broker-dealer's customer is attempting to raise money for a new business venture. The customer's registered representative (RR) agrees to assist by referring other clients and, in return, the RR will receive free services from the new business venture. This arrangement is:

Which organization is charged with the responsibility of regulating the blue-sky laws?

An investor notices a specific stock is trading at a higher price on one exchange than on another. If the investor takes advantage of this difference, it's referred to as:

A security with a high beta:

During a recession when inflation is low, which of the following actions is the Federal Reserve expected to take?

Which of the following is/are characteristics of direct participation programs (DPPs)?

When an ETF is purchased, what is the transaction cost paid by the client?

When illicit funds have entered the banking system undetected and appear to be legitimate, the funds are referred to as:

A corporate bond that has no specific collateral backing and is guaranteed by the "full faith and credit" of the issuing corporation is called a(n):

A broker-dealer executes but does not process transactions. If the firm processing the transactions knows the identity of the customers, this arrangement is known as a(n):

An registered person has received a letter from a customer which includes a complaint about a recent new issue that declined substantially on its first day of trading. The customer purchased the shares based on a recommendation by the registered person and now claims that the recommendation was unsuitable. Which of the following statements is TRUE?

According to the Customer Identification Program, broker-dealers are required to verify each customer's identity:

An investor has purchased 10,000 shares of a mutual fund for a total investment of $860,000. The investor has also received $20,000 in dividends and reinvested these funds back into the fund. What's the investor's total cost basis for the mutual fund shares?

What is the real interest rate for a bond that's yielding 6%, while the level of inflation is 2%, and the prime rate is 5%?

Which of the following statements is TRUE about revenue bonds?

Qualified distributions from an ABLE plan are:

A withdrawal from an IRA may be made prior to age 59 1/2 without incurring a 10% penalty tax in which of the following situations?

The practice of selling dividends is prohibited because:

A member of the Federal Reserve System is seeking to borrow funds from another member bank. The interest rate that's charged on the loan is referred to as the:

Which of the following statements best describes the difference between Settlement date and Regulation T payment date?

Which of the following investment companies issues a fixed number of shares?

What's required on Form U5?

A call premium is best described as the amount the:

If an investor owns Treasury bonds that will mature in 20 years, she is exposed to:

Which of the following statements is TRUE concerning filing a registration application with FINRA?

An investor, age 52, with funds in a 401(k) plan, is leaving her employer and wants to transfer the funds to an IRA account at your firm. Which of the following statements is TRUE?

ERISA stipulates that employers with qualified plans are not permitted to exclude employees who have worked for the employer at least one year and:

In which of the following situations can a registered person of a broker-dealer borrow funds from a customer without approval of her firm?

When executing customer orders, best execution rules require the broker-dealer to:

A client owns stock that's trading at $52.50 and wants to sell her shares, but only if she can sell at $54.00 or higher. She should place which of the following orders?

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