Question 1

Municipal syndicate allocation procedures are described in which of the following?

Accepted Answer

A) underwriting agreement 
B) syndicate account letter 
C) agreement among the underwriters 
D) official statement 
A) underwriting agreement 
B) syndicate account letter 
C) agreement among the underwriters 
D) official statement

Question 2

A financial institution requesting a quote on a block of 100 bonds from a dealer in government securities receives a quote of 98.02 bid, 98.06 asked. What is the dollar amount the institution will receive if the financial institution sells these bonds to the dealer?''

Accepted Answer

A) $98,062.50 
B) $98,187.50 
C) $98,250.00 
D) $98,750.00 
A) $98,062.50 
B) $98,187.50 
C) $98,250.00 
D) $98,750.00

Question 3

Bubba held one XYZ July 30 listed call option when XYZ split 2 for 1. What is the resulting position Bubba has on the Option Clearing Corporation's record?

Accepted Answer

A) long one XYZ July 30 call 
B) long one XYZ July 30 call and short one XYZ July 30 call 
C) long two XYZ July 30 calls 
D) long two XYZ July 15 calls 
A) long one XYZ July 30 call 
B) long one XYZ July 30 call and short one XYZ July 30 call 
C) long two XYZ July 30 calls 
D) long two XYZ July 15 calls

Question 4

Which of the following oil and gas programs does not directly involve drilling?

Accepted Answer

A) exploratory 
B) developmental 
C) balanced 
D) income 
A) exploratory 
B) developmental 
C) balanced 
D) income

Question 5

In the distribution of a new issue, a dealer acting as an underwriter is said to have a:

Accepted Answer

A) firm market 
B) divided account 
C) free ride 
D) firm commitment 
A) firm market 
B) divided account 
C) free ride 
D) firm commitment

Question 6

Interest rates rise from 5.10% to 5.30%. For a prospective buyer of five $1,000 bonds, what is the increase in interest payments as a result of the rise?

Accepted Answer

A) $20 
B) $100 
C) $2 
D) $10 
A) $20 
B) $100 
C) $2 
D) $10

Question 7

Which of the following is true of treasury stock?

Accepted Answer

A) it has voting rights 
B) it is entitled to receive dividends 
C) it is stock that has not been issued 
D) it is stock that has been reacquired by the issuer 
A) it has voting rights 
B) it is entitled to receive dividends 
C) it is stock that has not been issued 
D) it is stock that has been reacquired by the issuer

Question 8

Bubba owns 200 shares of XYZ at $90, and wishes to hedge the position while generating income. What is the best recommendation?

Accepted Answer

A) sell calls 
B) sell puts 
C) buy calls 
D) buy puts 
A) sell calls 
B) sell puts 
C) buy calls 
D) buy puts

Question 9

Which of the following best describes phantom income?

Accepted Answer

A) income from deductions and tax credits 
B) the non-taxable portion of a distribution 
C) income received but not reported 
D) income reported but not received 
A) income from deductions and tax credits 
B) the non-taxable portion of a distribution 
C) income received but not reported 
D) income reported but not received

Question 10

Bubba Brokerage Corporation announces through its wire system that it has a large block of stock for sale. Customers purchasing the stock will not pay a commission. The block is crossed on the NYSE floor and is printed on the NYSE tape. This is called a:

Accepted Answer

A) special order 
B) exchange distribution 
C) secondary distribution 
D) specialist block purchase 
A) special order 
B) exchange distribution 
C) secondary distribution 
D) specialist block purchase

Question 11

Which of the following sets out the details for the management board of condominiums, including the board's powers and limitations?

Accepted Answer

A) master deed 
B) bylaws 
C) rental agreement 
D) loan agreement 
A) master deed 
B) bylaws 
C) rental agreement 
D) loan agreement

Question 12

The total assets of a corporation are $840,000, of which $350,000 are current items. Total liabilities are $460,000, of which $290,00 are fixed obligations. How much is the corporation's working capital?

Accepted Answer

A) $60,000 
B) $110,000 
C) $180,000 
D) $380,000 
A) $60,000 
B) $110,000 
C) $180,000 
D) $380,000

Question 13

Which of the following is available both to owners of stock and owners of limited partnership participations?

Accepted Answer

A) deduction of business expenses from income 
B) a share in the profits from earnings 
C) tax credits 
D) deductions for losses in excess of income earned 
A) deduction of business expenses from income 
B) a share in the profits from earnings 
C) tax credits 
D) deductions for losses in excess of income earned

Question 14

Assuming that the information contained in a registration statement is complete and accurate, the registration statement becomes effective:

Accepted Answer

A) 10 days after receipt by the SEC 
B) 20 days after receipt by the SEC 
C) 30 days after receipt by the SEC 
D) only after the SEC specifically clears the issue in writing to the principal underwriter 
A) 10 days after receipt by the SEC 
B) 20 days after receipt by the SEC 
C) 30 days after receipt by the SEC 
D) only after the SEC specifically clears the issue in writing to the principal underwriter

Question 15

How much money is a concession of 3/8 worth for one municipal bond?

Accepted Answer

A) $0.375 
B) $3.75 
C) $37.50 
D) $375.00 
A) $0.375 
B) $3.75 
C) $37.50 
D) $375.00

Question 16

CMOs are sold and priced based upon which of the following:

Accepted Answer

A) expected average life 
B) stated maturity 
C) current yield 
D) par value 
A) expected average life 
B) stated maturity 
C) current yield 
D) par value

Question 17

Which of the following is an acceptable deposit to answer an NYSE maintenance call?

Accepted Answer

A) US savings bond 
B) SMA 
C) US treasury notes 
D) all of the above 
A) US savings bond 
B) SMA 
C) US treasury notes 
D) all of the above

Question 18

A case of leverage is:

Accepted Answer

A) selling common stock short and buying warrants for the equivalent number of shares followed by subscribing to the shares and covering the short 
B) borrowing at 6% and investing the funds at 10% 
C) buying stock on the NYSE and later selling it the same day on the CBOE 
D) redeeming a convertible bond before maturity 
A) selling common stock short and buying warrants for the equivalent number of shares followed by subscribing to the shares and covering the short 
B) borrowing at 6% and investing the funds at 10% 
C) buying stock on the NYSE and later selling it the same day on the CBOE 
D) redeeming a convertible bond before maturity

Question 19

Which of the following would be least useful to an analyst making a technical market report?

Accepted Answer

A) advances and declines 
B) new highs and lows 
C) the short interest 
D) predictions of recession in the economy 
A) advances and declines 
B) new highs and lows 
C) the short interest 
D) predictions of recession in the economy

Question 20

Big Easy Investment Banking, Inc., participates in a Western account underwriting of $10 million of municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold but Big Easy has distributed $1.5 million of bonds. What is the liability of Big Easy remaining in the account?

Accepted Answer

A) $0 
B) $400,000 
C) $600,000 
D) $1,000,000 
A) $0 
B) $400,000 
C) $600,000 
D) $1,000,000

Municipal syndicate allocation procedures are described in which of the following?

A financial institution requesting a quote on a block of 100 bonds from a dealer in government securities receives a quote of 98.02 bid, 98.06 asked. What is the dollar amount the institution will receive if the financial institution sells these bonds to the dealer?''

Bubba held one XYZ July 30 listed call option when XYZ split 2 for 1. What is the resulting position Bubba has on the Option Clearing Corporation's record?

Which of the following oil and gas programs does not directly involve drilling?

In the distribution of a new issue, a dealer acting as an underwriter is said to have a:

Interest rates rise from 5.10% to 5.30%. For a prospective buyer of five $1,000 bonds, what is the increase in interest payments as a result of the rise?

Which of the following is true of treasury stock?

Bubba owns 200 shares of XYZ at $90, and wishes to hedge the position while generating income. What is the best recommendation?

Which of the following best describes phantom income?

Bubba Brokerage Corporation announces through its wire system that it has a large block of stock for sale. Customers purchasing the stock will not pay a commission. The block is crossed on the NYSE floor and is printed on the NYSE tape. This is called a:

Which of the following sets out the details for the management board of condominiums, including the board's powers and limitations?

The total assets of a corporation are $840,000, of which $350,000 are current items. Total liabilities are $460,000, of which $290,00 are fixed obligations. How much is the corporation's working capital?

Which of the following is available both to owners of stock and owners of limited partnership participations?

Assuming that the information contained in a registration statement is complete and accurate, the registration statement becomes effective:

How much money is a concession of 3/8 worth for one municipal bond?

CMOs are sold and priced based upon which of the following:

Which of the following is an acceptable deposit to answer an NYSE maintenance call?

A case of leverage is:

Which of the following would be least useful to an analyst making a technical market report?

Investment and Bond Market

Assorted Securities and Investments

Uniform Securities Act USA and State Registration Requirements

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Exam 2: Investment and Securities

Municipal syndicate allocation procedures are described in which of the following?

A financial institution requesting a quote on a block of 100 bonds from a dealer in government securities receives a quote of 98.02 bid, 98.06 asked. What is the dollar amount the institution will receive if the financial institution sells these bonds to the dealer?''

Bubba held one XYZ July 30 listed call option when XYZ split 2 for 1. What is the resulting position Bubba has on the Option Clearing Corporation's record?

Which of the following oil and gas programs does not directly involve drilling?

In the distribution of a new issue, a dealer acting as an underwriter is said to have a:

Interest rates rise from 5.10% to 5.30%. For a prospective buyer of five $1,000 bonds, what is the increase in interest payments as a result of the rise?

Which of the following is true of treasury stock?

Bubba owns 200 shares of XYZ at $90, and wishes to hedge the position while generating income. What is the best recommendation?

Which of the following best describes phantom income?

Bubba Brokerage Corporation announces through its wire system that it has a large block of stock for sale. Customers purchasing the stock will not pay a commission. The block is crossed on the NYSE floor and is printed on the NYSE tape. This is called a:

Which of the following sets out the details for the management board of condominiums, including the board's powers and limitations?

The total assets of a corporation are $840,000, of which $350,000 are current items. Total liabilities are $460,000, of which $290,00 are fixed obligations. How much is the corporation's working capital?

Which of the following is available both to owners of stock and owners of limited partnership participations?

Assuming that the information contained in a registration statement is complete and accurate, the registration statement becomes effective:

How much money is a concession of 3/8 worth for one municipal bond?

CMOs are sold and priced based upon which of the following:

Which of the following is an acceptable deposit to answer an NYSE maintenance call?

A case of leverage is:

Which of the following would be least useful to an analyst making a technical market report?

Investment and Bond Market

Assorted Securities and Investments

Uniform Securities Act USA and State Registration Requirements

Filters