Exam 2: Investment and Securities

Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed 100 ABC $30 200 XYZ $70 200 QBB $40 200 KKK $25 Total market value = $30,000 Debit balance in the account = $12,000 Net equity balance of the account = $18,000 If Bubba wants to buy 100 shares of DUM at $30 per share, how much additional money must be deposited?

For an FINRA member firm to exercise discretionary power in any customer account requires written authorization by that customer except when:

In mid-September, Bubba sells one XYZ February 50 call at $6. It subsequently expires without being exercised. How is the premium taxed?

Which of the following is a benefit of Section 8 low-income housing partnerships?

Bubba holds 200 shares of common stock in a utility company and receives rights to subscribe to an additional 100 shares at $20. The utility company is raising $40 million of new capital. How many rights does Bubba receive?

In a securities underwriting a participating firm is said to be liable severally but not jointly. What is this type of underwriting is called?

Under Regulation T, when must money be deposited to cover requirements for Bubba's new purchases on margin?

Bubba Corporation owes income tax. Which of the following may be tendered at par value for payment of the tax?

Which of the following statements regarding mutual funds is true?

A syndicate manager has just been informed that its bid has been accepted and all syndicate members are duly notified. Public information on the award will be most quickly available from:

Book value of a corporation is also know as:

The accounting statement that represents a company's financial position on a particular date is the:

Which of the following types of investment companies pays out 90% of its net investment income to shareholders?

Which of the following does not appear in a municipal syndicate letter to underwriters?

Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed 100 ABC $30 200 XYZ $70 200 QBB $40 200 KKK $25 Total market value = $30,000 Debit balance in the account = $12,000 Net equity balance of the account = $18,000 Bubba wants to buy 100 shares of DUM at $30 per share and 100 shares of OUT at $120. How much how much value of additional securities must Bubba deposit in lieu of depositing cash?

Which of the following is not an investment company within the terms of the Investment Company Act of 1940?

An "accumulation unit" of a variable annuity is used to determine which of the following?

Which of the following is not a marketable security?

The Bubba Corporation is offering stock to the public for the first time. The registration statement lists 150,000 shares for sale at $400 per share. The company conducts business in a 100-mile radius that includes towns in two neighboring states. Which of the following information is not required in the preliminary prospectus for this offering?

Partnership democracy is: