Question 1

Under a leaseback arrangement used to finance construction of local schools, who is the issuer of the municipal bonds?

Accepted Answer

A) the state in which the schools are located 
B) the local school district 
C) a legal authority created for this purpose 
D) a public housing authority commissioned by the federal government 
A) the state in which the schools are located 
B) the local school district 
C) a legal authority created for this purpose 
D) a public housing authority commissioned by the federal government

Question 2

Which of the following is the least important method of money control exercised by the Federal Reserve?

Accepted Answer

A) reserve requirements 
B) open market operations 
C) discount rate 
D) Regulation T 
A) reserve requirements 
B) open market operations 
C) discount rate 
D) Regulation T

Question 3

Bubba owns 100 shares of XYZ at $58. He needs to limit his loss to 5 points or less and will accept a longer time for the order to be executed, to make sure the loss does not exceed 5 points. Which of the following orders would be the best recommendation?

Accepted Answer

A) sell limit order 
B) sell stop-limit order 
C) sell stop order 
D) buy stop order 
A) sell limit order 
B) sell stop-limit order 
C) sell stop order 
D) buy stop order

Question 4

Which of the following preferred issues is likely to fluctuate most in value?

Accepted Answer

A) cumulative preferred 
B) callable preferred 
C) convertible preferred 
D) broker preferred 
A) cumulative preferred 
B) callable preferred 
C) convertible preferred 
D) broker preferred

Question 5

In a best efforts distribution of a new non-exempt issue, a broker/dealer:

Accepted Answer

A) may allow a selling concession to a bank or trust company 
B) agrees to buy the issue at a specified price 
C) is not required to use an offering circular or prospectus 
D) acts as an agent for the issuer 
A) may allow a selling concession to a bank or trust company 
B) agrees to buy the issue at a specified price 
C) is not required to use an offering circular or prospectus 
D) acts as an agent for the issuer

Question 6

Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share and wishes to satisfy the margin call by delivering another listed security into his account. He may do so by depositing stocks with a market value of:

Accepted Answer

A) $9,333 
B) $5,714 
C) $4,000 
D) $2,800 
A) $9,333 
B) $5,714 
C) $4,000 
D) $2,800

Question 7

In a triple net lease, which of the following is the tenant not responsible for paying?

Accepted Answer

A) taxes 
B) financing charges 
C) insurance premiums 
D) maintenance 
A) taxes 
B) financing charges 
C) insurance premiums 
D) maintenance

Question 8

Convertible preferred stock has all of the following characteristics except:

Accepted Answer

A) a lower dividend rate than non-convertible preferred 
B) a dilution of earnings if converted into common stock 
C) a requirement for shareholders to always accept the call price when called 
D) required dividend payments to shareholders before any dividends are paid to holders of common stock 
A) a lower dividend rate than non-convertible preferred 
B) a dilution of earnings if converted into common stock 
C) a requirement for shareholders to always accept the call price when called 
D) required dividend payments to shareholders before any dividends are paid to holders of common stock

Question 9

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

Under a leaseback arrangement used to finance construction of local schools, who is the issuer of the municipal bonds?

Which of the following is the least important method of money control exercised by the Federal Reserve?

Bubba owns 100 shares of XYZ at $58. He needs to limit his loss to 5 points or less and will accept a longer time for the order to be executed, to make sure the loss does not exceed 5 points. Which of the following orders would be the best recommendation?

Which of the following preferred issues is likely to fluctuate most in value?

In a best efforts distribution of a new non-exempt issue, a broker/dealer:

Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share and wishes to satisfy the margin call by delivering another listed security into his account. He may do so by depositing stocks with a market value of:

In a triple net lease, which of the following is the tenant not responsible for paying?

Convertible preferred stock has all of the following characteristics except:

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

Investment and Bond Market

Investment and Securities

Uniform Securities Act USA and State Registration Requirements

Filters

Exam 3: Assorted Securities and Investments

Under a leaseback arrangement used to finance construction of local schools, who is the issuer of the municipal bonds?

Which of the following is the least important method of money control exercised by the Federal Reserve?

Bubba owns 100 shares of XYZ at $58. He needs to limit his loss to 5 points or less and will accept a longer time for the order to be executed, to make sure the loss does not exceed 5 points. Which of the following orders would be the best recommendation?

Which of the following preferred issues is likely to fluctuate most in value?

In a best efforts distribution of a new non-exempt issue, a broker/dealer:

Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share and wishes to satisfy the margin call by delivering another listed security into his account. He may do so by depositing stocks with a market value of:

In a triple net lease, which of the following is the tenant not responsible for paying?

Convertible preferred stock has all of the following characteristics except:

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

Investment and Bond Market

Investment and Securities

Uniform Securities Act USA and State Registration Requirements

Filters