Question 1

Which of the following is not good delivery on a sale of 470 shares?

Accepted Answer

A) 47 10-share certificates 
B) 4 100-share certificates and one 70-share certificate 
C) 8 50-share certificates, one 40-share certificate, and one 30-share certificate 
D) 2 100-share certificates and 3 90-share certificates 
A) 47 10-share certificates 
B) 4 100-share certificates and one 70-share certificate 
C) 8 50-share certificates, one 40-share certificate, and one 30-share certificate 
D) 2 100-share certificates and 3 90-share certificates

Question 2

Which of the information below does not appear in the official notice of sale?

Accepted Answer

A) the type of bond 
B) the amount of required good faith check 
C) the names of underwriting syndicate members 
D) the method and place of settlement 
A) the type of bond 
B) the amount of required good faith check 
C) the names of underwriting syndicate members 
D) the method and place of settlement

Question 3

Bubba Corporation has 3,500,000 shares of common stock outstanding and its trading volume in the few weeks has been as follows:
Week 1 - 43,000
Week 2 - 30,900
Week 3 - 37,500
Week 4 - 42,600
Week 5 - 33,000 (the most recent week)
If an affiliated person wanted to liquidate some of his holding of 100,000 shares pursuant to SEC Rule 144, how many shares could he sell?

Accepted Answer

A) 35,000 
B) 36,000 
C) 37,400 
D) 38,500 
A) 35,000 
B) 36,000 
C) 37,400 
D) 38,500

Question 4

Under what circumstances may a registered investment company change its investment objective?

Accepted Answer

A) after SEC approval 
B) after it obtains a new charter from the state secretary 
C) after approval by a majority vote of the shareholders 
D) after providing notice that is recorded in the Federal Register 
A) after SEC approval 
B) after it obtains a new charter from the state secretary 
C) after approval by a majority vote of the shareholders 
D) after providing notice that is recorded in the Federal Register

Question 5

Which of the following securities provides the longest term of option privilege?

Accepted Answer

A) puts 
B) calls 
C) warrants 
D) rights 
A) puts 
B) calls 
C) warrants 
D) rights

Question 6

A corporate bond is quoted as having a net change in value of plus one point. By how much did the bond price increase?

Accepted Answer

A) $1,000 
B) $100 
C) $10 
D) $1 
A) $1,000 
B) $100 
C) $10 
D) $1

Question 7

The cost of maintaining an investment in a mutual fund is best reflected in the:

Accepted Answer

A) custodial fee 
B) sales charge 
C) expense ratio 
D) net investment income 
A) custodial fee 
B) sales charge 
C) expense ratio 
D) net investment income

Question 8

What is the possible reward for investing in raw land?

Accepted Answer

A) deferred income 
B) large deductions 
C) potential capital appreciation 
D) lack of investment risk 
A) deferred income 
B) large deductions 
C) potential capital appreciation 
D) lack of investment risk

Question 9

Which of the following organizations usually has a prominent role in guiding investment policies of mutual funds?

Accepted Answer

A) the plan company 
B) the management group 
C) the custodian bank 
D) the underwriter 
A) the plan company 
B) the management group 
C) the custodian bank 
D) the underwriter

Question 10

Which of the following statements is not true about a letter of intent?

Accepted Answer

A) the letter of intent has a maximum duration of 13 months 
B) a shareholder may not redeem any shares for 13 months 
C) a letter of intent may be backdated by 90 days 
D) a certain portion of shares purchased are held in escrow until the terms of the letter are met 
A) the letter of intent has a maximum duration of 13 months 
B) a shareholder may not redeem any shares for 13 months 
C) a letter of intent may be backdated by 90 days 
D) a certain portion of shares purchased are held in escrow until the terms of the letter are met

Question 11

To accommodate a customer's order to buy an over-the-counter stock, a broker/dealer is permitted to:

Accepted Answer

A) sell him shares from the firm's inventory 
B) sell these shares short to the customer 
C) act as agent on this transaction 
D) all of the above 
A) sell him shares from the firm's inventory 
B) sell these shares short to the customer 
C) act as agent on this transaction 
D) all of the above

Which of the following is not good delivery on a sale of 470 shares?

Which of the information below does not appear in the official notice of sale?

Under what circumstances may a registered investment company change its investment objective?

Which of the following securities provides the longest term of option privilege?

A corporate bond is quoted as having a net change in value of plus one point. By how much did the bond price increase?

The cost of maintaining an investment in a mutual fund is best reflected in the:

What is the possible reward for investing in raw land?

Which of the following organizations usually has a prominent role in guiding investment policies of mutual funds?

Which of the following statements is not true about a letter of intent?

To accommodate a customer's order to buy an over-the-counter stock, a broker/dealer is permitted to:

Investment and Bond Market

Assorted Securities and Investments

Uniform Securities Act USA and State Registration Requirements

Filters

Exam 2: Investment and Securities

Which of the following is not good delivery on a sale of 470 shares?

Which of the information below does not appear in the official notice of sale?

Under what circumstances may a registered investment company change its investment objective?

Which of the following securities provides the longest term of option privilege?

A corporate bond is quoted as having a net change in value of plus one point. By how much did the bond price increase?

The cost of maintaining an investment in a mutual fund is best reflected in the:

What is the possible reward for investing in raw land?

Which of the following organizations usually has a prominent role in guiding investment policies of mutual funds?

Which of the following statements is not true about a letter of intent?

To accommodate a customer's order to buy an over-the-counter stock, a broker/dealer is permitted to:

Investment and Bond Market

Assorted Securities and Investments

Uniform Securities Act USA and State Registration Requirements

Filters