Exam 2: Investment and Securities

If a municipality has funds available to make a partial call of an issue of outstanding serial bonds, which bonds should be called first?

Which of the following is least relevant in evaluating the safety of a general obligation bond?

Which of the following clients could not open a margin account?

Bubba has a cash account and fails to make full and prompt payment for a purchase. The broker liquidated the transaction. Two weeks later, Bubba places another buy order for 100 shares of XYZ. What does the broker do?

Feasibility studies and engineering surveys are most necessary prior to which of the following new offerings?

Under the terms of the 1970 Securities Investor Protection Act, what is the status of a customer whose account assets exceed SIPC insurance coverage when his broker/dealer becomes insolvent?

Bubba Corporation has a registered public offering of 500,000 shares at $36. Of these, 300,000 shares were authorized by unissued and 200,000 shares were sold on behalf of an affiliated person. What is evident from this information?

A front-end loan mutual fund plan is most suitable for:

Bubba purchases 100 shares of XYZ at 78 and, on the same day, writes 1 XYZ October 80 call for a premium of 4. If the option expires unexercised, what is Bubba's profit on the 100 shares of stock?

Assuming all of the following bonds from the same issuer are callable now, which one would most likely get called first?

The term "secondary market" refers to:

Bubba has a short margin account with equity of $15,000 and a credit balance of $28,000. What is the current NYSE minimum equity maintenance requirement on Bubba's account?

Which of the following persons would consider annual reports of a corporation as the most important factor in making investment decisions?

Bubba has been classified as a restricted person according to Rule 2790. He may purchase equity securities of an IPO except:

When depositors withdraw money from savings institutions to invest in US treasury securities, this is called:

Which of the following does not issue debt securities that trade in the open market?

Smart Company, Inc., has cash it intends to use in six months for purchase of equipment. The most prudent investment during the six-month period is:

Bubba owns a subordinated debenture in a company that is liquidating. When will he get paid?

Which of the following forms of underwriting is least likely for an offering of municipal bonds?

In what broad category of municipal bonds are "limited tax" bonds placed?