Exam 2: Investment and Securities

In June, Bubba bought 100 shares of XYZ at $35. In November, he bought a listed put in XYZ with a $35 strike price and a July expiration for a premium of $600. If Bubba sells the stock at $45 in July, what is his resulting tax liability for that transaction?

Bubba buys a ten-year municipal and at 102 and sells it five years later at 101. What is tax treatment?

Provisions of SEC Rule 145 normally apply to an exchange of one security for another as a result of:

Which of the following is true about option prices?

Which of the following municipal securities carries the full faith and credit of the US government for payment of interest and principal if the issuer's funds are insufficient?

Which of the following is associated with an income oil and gas partnership?

An investor purchasing a corporate bond regular way will have to pay the contracted price plus accrued interest:

How much currency is one mil worth?

Which of the following is not provided for by Blue Sky laws?

Prospective bidders for a municipal bond being issued should consult what document for relevant procedures?

Municipalities are most likely to issue notes for which of the following purposes?

In the sale of open-end investment company shares, the amount at which the sales charge is reduced on quantity transactions is referred to as the:

When a corporation dissolves, who gets paid first?

Bubba buys an OTC stock from a firm that is a market-maker in the stock. What may be said about the price he pays?

A 5% markup policy applies to:

Limited partnerships try to avoid recapture because:

Convertible bonds have all of the following features except:

Which of the following are sources of funding for limited partnerships?

Which of the following situations is possible for a writer of a covered call option?

Under what circumstances may a municipal securities dealer guarantee a customer against loss in market value of bonds?