Annie Stc Quiz Part 1

256 Questions  I  By Annchong71
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Annie Hall Quizzes & Trivia
Private quiz for Annie covering Chap 1 to Chap 5.

  
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1.  A company has a noncumulative preferred stock outstanding that pays a $5 dividend per year. If dividends on the preferred stock were not paid last year, but will be paid this year, how much should the preferred stockholder receive?
A.
B.
C.
D.
2.  Which of the following best describes a wrap account?
A.
B.
C.
D.
3.  Which of the following would be an invalid endorsement on a stock certificate?
A.
B.
C.
D.
4.  A registered representative enters an order for a client. In error, the RR purchases shares of the wrong security. Which of the following statements is TRUE?
A.
B.
C.
D.
5.  From the issuer's perspective, when comparing term bonds and serial bonds, serial bonds have:
A.
B.
C.
D.
6.  Which of the following would be acceptable as a custodian on a UGMA account?
A.
B.
C.
D.
7.  When a gift of securities is purchased for a minor in a custodian account, the gift becomes the property of the minor:
A.
B.
C.
D.
8.  Co. A Co. B Co. C Co. D
Earnings per Share $2.00 $6.50 $5.20 $7.80
Dividends $0.10 $2.50 $2.60 $6.00
Percentage ofRetained Earnings 95% 62% 50% 23%
Which of the above companies is probably a growth company?
A.
B.
C.
D.
9.  A customer buys bonds with a $50,000 par value at 85 1/2. The bonds are callable at 110. If the customer holds the bonds to maturity he will receive:
A.
B.
C.
D.
10.  To open an account and determine suitability for a new client who would like to invest in an exploratory drilling oil and gas direct participation program, the RR must obtain all of the following information EXCEPT the customer's:
A.
B.
C.
D.
11.  All of the following are TRUE regarding accounts established under the Uniform Gifts to Minors Act EXCEPT the:
A.
B.
C.
D.
12.  An announcement in The Wall Street Journal states that New York State plans an advanced refunding of its 7 1/2% Dormitory Bonds through the issuance of a special $50,000,000 bond issue. This means that:
A.
B.
C.
D.
13.  All of the following are true regarding discretionary accounts EXCEPT:
A.
B.
C.
D.
14.  To whom may a registered representative appeal a finding by a Hearing Panel?
A.
B.
C.
D.
15.  A registered representative sells 1,500 shares of stock for a client and executes the transaction using the wrong account number. Which of the following actions should be taken?
A.
B.
C.
D.
16.  XYZ Corporation uses the cumulative voting method of electing directors. A shareholder owning 100 shares of stock voting for the election of five new directors could vote:
A.
B.
C.
D.
17.  Which of the following is TRUE regarding numbered accounts?
A.
B.
C.
D.
18.  XYZ Corporation has 2,000,000 shares of common stock authorized. The company has issued 1,000,000 common shares of which 200,000 shares are treasury stock. The company has earnings of $2.00 per share. The XYZ Corporation has repurchased:
A.
B.
C.
D.
19.  Which of the following persons cannot delegate power of attorney to a third party for the purpose of making securities transactions?
A.
B.
C.
D.
20.  The quarterly dividend of ABC company is 32 1/2 cents. The market price is $24.00 a share. What is the current yield?
A.
B.
C.
D.
21.  If a client's account is inactive, how often does a statement have to be mailed?
A.
B.
C.
D.
22.  An investor who has granted power of attorney to his son dies. The power of attorney:
A.
B.
C.
D.
23.  A customer has $350,000 in securities and $150,000 in cash in his brokerage account. If the brokerage firm carrying the account was to go bankrupt, SIPC would cover:
A.
B.
C.
D.
24.  A customer would like to open an account designated by number. The registered representative should:
A.
B.
C.
D.
25.  An investor owns 280 shares of XYZ Corporation. XYZ Corporation pays a 15 cents quarterly dividend. XYZ Corporation announces a 5-for-4 split. The dividend per share is adjusted to reflect the split. How much will the investor receive in dividends each quarter after the split?
A.
B.
C.
D.
26.  Which two of the following are NOT SROs?
  1. MSRB
  2. SIPC
  3. FINRA
  4. SEC
A.
B.
C.
D.
27.  A registered representative receives an order from her customer to sell 600 shares of BWGF to be executed in her IRA account. The RR mistakenly executes the order in the wrong account. What action should be taken to correct the error?
A.
B.
C.
D.
28.  A client has a margin account with a long market value of $950,000 and a debit balance of $550,000. If the broker-dealer declares bankruptcy, which TWO of the following statements are TRUE?
  1. The client is permitted to pay $550,000 and receive $950,000 of securities.
  2. The client is permitted to pay $500,000 and receive $950,000 of securities.
  3. The client is covered for $400,000 of securities.
  4. The client is covered for $500,000 of securities.
A.
B.
C.
D.
29.  All of the following are TRUE about discretionary accounts EXCEPT:
A.
B.
C.
D.
30.  A company declares a cash dividend. Standard and Poor's details this information in its dividend book. Ten days after the record date this information is published in a local newspaper. When is the ex-dividend date?
A.
B.
C.
D.
31.  A common shareholder has all of the following rights EXCEPT the right to:
A.
B.
C.
D.
32.  Under what circumstances may a husband and wife both be custodians for a minor's account?
A.
B.
C.
D.
33.  A registered representative is preparing to leave her firm. Her clients will be assigned to another representative at the same firm. To accomplish this:
A.
B.
C.
D.
34.  When comparing long-term bonds to short-term bonds, all of the following are TRUE EXCEPT:
A.
B.
C.
D.
35.  Mr. Jones, a shareholder of XYZ Corporation, reads in the newspaper that XYZ Corporation intends to issue new shares through a rights offering. The terms of the rights offering are as follows:
  1. 10 rights plus $10.50 are required to subscribe to one new share of stock
  2. Fractional shares become whole shares
  3. The record date is Friday, October 17th
  4. JPMorgan Chase and Bank of America are the transfer agents
  5. Goldman Sachs and Morgan Stanley are the standby underwriters
Mr. Jones also owns 87 shares of the preferred stock of the XYZ Corporation. How many additional shares can he subscribe to and at what cost?
A.
B.
C.
D.
36.  Which of the following are TRUE regarding the Code of Arbitration?
  1. Disputes between members must be submitted to arbitration.
  2. Arbitration decisions are binding and may not be appealed.
  3. A client cannot be forced to submit to arbitration.
  4. Arbitration is more cost-effective than litigating the matter in court.
A.
B.
C.
D.
37.  A customer sells 100 shares of GM short. GM declares a 5% stock dividend. When the customer covers the short position, the customer will have to deliver:
A.
B.
C.
D.
38.  Relative to a custodian account, which of the following are TRUE?
  1. The minor is responsible for tax consequences.
  2. The custodian is responsible for tax consequences.
  3. Income generated in the account is taxed as it is received.
  4. Income generated in the account is taxed when the minor becomes an adult.
A.
B.
C.
D.
39.  A registered representative should update a customer's account records for a change in:
  1. Address
  2. Net worth
  3. Employer
  4. Investment objectives
A.
B.
C.
D.
40.  A client would like all trade confirmations sent to his investment adviser. This will require:
A.
B.
C.
D.
41.  A notice of sale appears showing that RFQ corporation is selling 800,000 units at $6 per unit. Each unit consists of 2 shares of pre-ferred stock and a warrant for 1/2 share of common stock. If all of the warrants are exercised, how many shares will be outstanding?
A.
B.
C.
D.
42.  A registered representative receives a sell order from his customer. When he submits the order to the wire room he accidentally transposes two of the digits in the account number and the order is processed under the wrong account. This problem would be rectified:
A.
B.
C.
D.
43.  An investor sells ten 5% bonds and buys another 10 bonds with a 5 1/4% coupon rate. The investor's yearly cash flow from the bonds will have increased by:
A.
B.
C.
D.
44.  On Tuesday May 1st, XYX Corporation's Board of Directors announce a dividend payable on Friday, May 25th to stockholders of record on Monday, May 14th. The ex-dividend date would be:
A.
B.
C.
D.
45.  Which of the following would probably have the greatest fluctuation in price when interest rates move up or down?
A.
B.
C.
D.
46.  Lyle, Molly, and Seena have a joint account registered as Tenants in Common. In the event that Seena dies, which of the following is true?
A.
B.
C.
D.
47.  A client's wife calls and wants to purchase 200 shares of XYZ in her husband's personal account. The registered representative handling the account knows that a favorable earnings report is about to be issued. The registered representative:
A.
B.
C.
D.
48.  Municipal bond rating organizations are primarily concerned with the risk of:
A.
B.
C.
D.
49.  Mrs. Smith buys a 6 3/4% municipal bond at 101 3/4. The yield-to-maturity on the bond is:
A.
B.
C.
D.
50.  Term bond quotes are based on:
A.
B.
C.
D.
51.  Which of the following employees of a broker-dealer must provide written notification to his or her employer in order to open a securities account at another firm?
  1. A registered representative
  2. A principal
  3. A secretary
  4. A janitor
A.
B.
C.
D.
52.  As far as rights offerings are concerned:
A.
B.
C.
D.
53.  All of the following would normally be a characteristic of a growth company EXCEPT that it has a:
A.
B.
C.
D.
54.  When comparing high-grade bonds to low-grade bonds, lower grade bonds will have:
  1. Higher yields
  2. Lower yields
  3. Higher market prices
  4. Lower market prices
A.
B.
C.
D.
55.  All of the following are TRUE of treasury stock EXCEPT it:
A.
B.
C.
D.
56.  Which of the following are needed to open a corporate margin account?
  1. Corporate charter and resolution
  2. New account form
  3. Hypothecation Agreement
  4. Trust Agreement
A.
B.
C.
D.
57.  A registered representative opens a joint options account for three brothers. According to the rules of the options exchanges, the registered representative would be required to obtain background and financial information from:
A.
B.
C.
D.
58.  Shares that are issued but not outstanding are classified as:
A.
B.
C.
D.
59.  Foremost Corporation has declared a quarterly dividend of 25 cents payable to stockholders of record on Friday, December 1st. The dividend would be paid to all stockholders whose name appeared on the record books of Foremost Corporation on:
A.
B.
C.
D.
60.  An investor owns 4,000 shares of common stock which pays a quarterly dividend of 35 cents. If the investor purchases 500 additional shares prior to the first ex-dividend date of the year, what is the investor's expected annual income from the investment?
A.
B.
C.
D.
61.  A husband and wife have a joint account with right of survivorship. If one of the parties places an order, the RR:
A.
B.
C.
D.
62.  A customer owns 500 shares of XYZ stock selling at $15 per share and $20,000 par value of State of Alabama GO bonds selling at 101. If both securities increased by 2 1/2 points, the dollar value of the increase would be:
A.
B.
C.
D.
63.  According to AML procedures, which two of the following is a member firm required to obtain when opening a new account for a non-U.S. citizen?
  1. Current employer
  2. Passport number and country of issuance
  3. Current address
  4. Telephone number
A.
B.
C.
D.
64.  Dow Chemical bonds are listed in the NYSE bond table as having closed the previous day at 91 7/8. The closing price of Dow Chemical bonds is:
A.
B.
C.
D.
65.  Self-regulatory organizations generally have rules that:
  1. Mandate commission schedules that brokerage firms must charge
  2. Are designed to maintain a fair and orderly market
  3. Mandate all brokerage firms stand ready to buy or sell securities from their own account to maintain liquidity
  4. Require brokerage firms use reasonable diligence to provide customers with best execution
A.
B.
C.
D.
66.  Which of the following would have the least capital risk for a client?
A.
B.
C.
D.
67.  ABC Corporation has issued two $1,000 par value bonds with the same coupon rate, one paying interest annually and the other paying interest semiannually. If both bonds are held to maturity in 10 years, the bond paying interest annually will have a total return that is:
A.
B.
C.
D.
68.  Which of the following communications must be filed with FINRA ten days prior to use?
  1. Options advertising
  2. Mutual fund advertising
  3. CMO advertising
  4. Unit Investment Trust advertising
A.
B.
C.
D.
69.  The City of Richmond, Virginia is issuing 8 1/4% general obligation bonds at 100% of their par value. The bonds will mature in 20 years. An investor purchasing a bond at its offering price and holding the bond for 20 years will receive a yield-to-maturity of:
A.
B.
C.
D.
70.  A customer wants to open a cash account. All of the following are required on the new account form EXCEPT:
A.
B.
C.
D.
71.  A company has $50,000,000 par value convertible bonds outstanding. The coupon rate is 8%. The bonds are currently selling at 96. What is the current yield?
A.
B.
C.
D.
72.  A company declares a forward stock split. What is the effect on the stock's par value?
A.
B.
C.
D.
73.  Which of the following statements is true regarding a custodian account?
A.
B.
C.
D.
74.  Mr. Jones, a shareholder of XYZ Corporation, reads in the newspaper that XYZ Corporation intends to issue new shares through a rights offering. The terms of the rights offering are as follows:
  1. 10 rights plus $10.50 are required to subscribe to one new share of stock
  2. Fractional shares become whole shares
  3. The record date is Friday, October 17th
  4. JPMorgan Chase and Bank of America are the transfer agents
  5. Goldman Sachs and Morgan Stanley are the standby underwriters
Mr. Jones chose to subscribe to the rights offering and purchased additional XYZ Corporation common stock on October 16th. Based on his latest stock purchase, he would:
A.
B.
C.
D.
75.  A customer sells short 400 shares and the company declares a 10% stock dividend. When the customer covers the short position, the customer will be required to deliver:
A.
B.
C.
D.
76.  Three bonds all have the same coupon rate of 6%. Bond A has a five-year maturity. Bond B has a one-year maturity. Bond C has a six-month maturity. If interest rates change, which bond would have the greatest dollar change in price?
A.
B.
C.
D.
77.  A company based in Europe with offices also located in New Jersey would like to have its stock traded on the NYSE. This would most likely be accomplished through the issuance of:
A.
B.
C.
D.
78.  A customer gives a registered representative the following instructions: Buy 1,000 shares of General Electric "whenever you think the price is right." Under current regulations:
A.
B.
C.
D.
79.  Which of the following would be most likely considered a defensive stock?
A.
B.
C.
D.
80.  A brokerage firm is holding $600,000 of securities for a customer. The securities are registered in the name of the customer. If the firm was being liquidated by SIPC, the customer would:
A.
B.
C.
D.
81.  All of the following are true about a dividend paid by a corporation to its shareholders EXCEPT the dividend:
A.
B.
C.
D.
82.  Which TWO of the following must a principal approve prior to use?
  1. An advertisement concerning the appointment of new managing directors
  2. An advertisement promoting a new type of CMO
  3. An advertisement regarding covered call writing
  4. An e-mail from an RR to a client concerning a security in her account
A.
B.
C.
D.
83.  Which of the following is NOT TRUE as it relates to a bond selling at a discount?
A.
B.
C.
D.
84.  If interest rates decline, which of the following securities would probably have the greatest increase in market value?
A.
B.
C.
D.
85.  A broker-dealer has failed because it has a net capital deficiency. Which of the following parties would NOT be covered by SIPC?
A.
B.
C.
D.
86.  A stock trades ex-dividend on Monday the 20th. What is the last day an investor can purchase the stock and be entitled to the dividend?
A.
B.
C.
D.
87.  A municipality would refund a revenue bond issue for all of the following reasons EXCEPT to:
A.
B.
C.
D.
88.  Of the different securities listed below, the one with the longest expiration date would normally be a:
A.
B.
C.
D.
89.  New Issue $50,000,000 City of Denver, Colorado Pollution Control Bonds Par Value $1,000
Amount Rate Maturity Date Price
$50,000 5 1/2% July 1, 2017 100
$60,000 6 1/2% July 1, 2018 100
Based on the above information, which of the following statements can be made about the bonds maturing in 2017?
  1. The yield to maturity will be the same as the nominal rate.
  2. The yearly interest payment is $55 per bond.
  3. The bond will yield 5 1/2%.
  4. The bonds will all be issued at the same dollar price.
A.
B.
C.
D.
90.  ABC Corporation announces a 5-for-4 split. After the split the market price of ABC Corporation will be reduced by:
A.
B.
C.
D.
91.  Concerning arbitration, all of the following are TRUE EXCEPT:
A.
B.
C.
D.
92.  Under the know your customer rule, when a registered representative opens a new account for a customer, the registered representative should determine, among other things, the customer's:
  1. Financial condition and needs
  2. Objectives
  3. Ability to assume risk
A.
B.
C.
D.
93.  When comparing long-term bonds and short-term bonds, all of the following are true EXCEPT:
A.
B.
C.
D.
94.  Which of the following would most likely have a mandatory sinking fund?
A.
B.
C.
D.
95.  Which of the following outside business activities would RRs NOT have to report to their employing broker-dealer?
A.
B.
C.
D.
96.  Which of the following would increase most in price if interest rates decline?
A.
B.
C.
D.
97.  Dow Chemical bonds are listed in the NYSE bond table as having a nominal yield of 6.6% and having closed the previous day at 91 7/8. An owner of 10 bonds would receive a yearly interest payment of:
A.
B.
C.
D.
98.  When a stock splits 5 for 4, by what percentage will the price of the stock be reduced?
A.
B.
C.
D.
99.  Pennsylvania Power Company has announced it will refund $100 million of its outstanding 12% bonds that were to mature in 2020. The bonds will be refunded at 106.75% of par value from the proceeds of a $100 million refunding issue. The refunding issue has a 6% coupon rate and matures in 2012. The refunding will reduce all of the following EXCEPT the:
A.
B.
C.
D.
100.  If interest rates are expected to rise over a period of time, a municipality that must raise money would probably issue securities with:
A.
B.
C.
D.
101.  A registered representative wants to take on a second job working part-time as a waiter in a restaurant. This is allowed as long as the individual notifies:
A.
B.
C.
D.
102.  Which of the following companies would most likely pay a dividend in stock rather than cash?
A.
B.
C.
D.
103.  All of the following are true regarding the role of a transfer agent EXCEPT that the transfer agent:
A.
B.
C.
D.
104.   A bond is selling at a premium. This is indicative of all of the following EXCEPT:
A.
B.
C.
D.
105.  Which of the following proxy rules would be correct regarding customer securities held in "street name" by a brokerage firm?
A.
B.
C.
D.
106.  A NYSE-listed stock closed at $72. The next day the stock is ex-dividend 60 cents. To determine if the stock increased or decreased from the close of trading, the price would be based upon:
A.
B.
C.
D.
107.  Relative to a municipal bond purchased at a discount, place the following in the proper sequence from lowest to highest.
  1. Current yield
  2. Nominal yield
  3. Yield-to-maturity
A.
B.
C.
D.
108.  A Japanese company would like to have its stock traded in the U.S. securities markets. This would most likely be accomplished through the issuance of:
A.
B.
C.
D.
109.  Which of the following events would generally require a shareholder vote?
  1. Declaration of a stock dividend
  2. Declaration of a stock split
  3. Declaration of a cash dividend
  4. Election of a director
A.
B.
C.
D.
110.  According to SRO rules, which of the following must be obtained when an RR opens an account in which mutual fund shares will be purchased?
A.
B.
C.
D.
111.  A corporation calls for redemption 1,000,000 shares of convertible preferred stock. The corporation announces that the convertible preferred will be redeemed at a price of $20 plus an accumulated dividend of 12 cents. Each share of preferred can be converted into 1/2 share of common. The preferred stock is selling at $19. There are 2,000,000 shares of common outstanding. Earnings for the common stock is $2.50 per share. The common stock is selling at 35.75. What would the market price of the preferred stock be if it were selling at parity with the common stock?
A.
B.
C.
D.
112.  SIPC is a(n):
A.
B.
C.
D.
113.  When a bond is selling at a premium:
A.
B.
C.
D.
114.  Which of the following could not be accomplished in a cash account?
A.
B.
C.
D.
115.  Arbitration decisions are:
A.
B.
C.
D.
116.  Which of the following statements is true regarding warrants?
A.
B.
C.
D.
117.  A customer purchases ten 7% $1,000 par value bonds selling at a discount that have a yield-to-maturity of 9%. The customer will receive a semiannual interest payment of:
A.
B.
C.
D.
118.  A customer owns 50 shares of ABC Corporation. ABC Corporation is engaging in a rights offering. The terms of the offering are that 10 rights plus $35 is required to buy one new share of stock. If the customer wanted to subscribe to the rights offering, how many additional rights would he need to buy 100 shares of stock?
A.
B.
C.
D.
119.  An individual owns 100 shares of GHI stock. If GHI announces a 3 for 1 stock split, the individual:
  1. Will receive an additional stock certificate for 200 shares
  2. Must return his old stock certificate and will be issued a new certificate for 300 shares
  3. Will see the value of his investment in GHI stock increase due to the split
  4. Will not see any increase in the value of his investment in GHI stock due to the split
A.
B.
C.
D.
120.  When a bond is registered as to principal only, this means that the bond has been issued:
A.
B.
C.
D.
121.  A customer does not have a discretionary account with his brokerage firm. The firm may decide which of the following factors for the customer?
A.
B.
C.
D.
122.  A corporation would primarily split its stock to:
A.
B.
C.
D.
123.  On Monday August 3, the board of directors of XYZ Corporation issued a press release stating that at today's meeting, they had decided to pay a 25 cent quarterly dividend. The checks for the dividend are to be sent out on September 15. The checks will be made out to anyone who is recorded as a shareholder as of Friday, August 28. The first trading day on which purchasers of XYZ stock will not receive the dividend is Wednesday, August 26. Wednesday, August 26 is called the:
A.
B.
C.
D.
124.  A client would like to open a numbered account. An RR may open the account:
A.
B.
C.
D.
125.  An investor is interested in investing in a stock with growth potential. He instructs his broker to use the firm's research and buy $10,000 worth of a stock of the broker's choosing. Which of the following statements is correct?
A.
B.
C.
D.
126.  Why would a new account be designated TOD?
A.
B.
C.
D.
127.  Two brothers open a joint account to trade options. Who will be required to sign the option agreement?
A.
B.
C.
D.
128.  A .05 change in basis would have the greatest effect on which of the following 6.00% coupon bonds?
A.
B.
C.
D.
129.  All of the following statements regarding the privacy notice of a broker dealer are true EXCEPT:
A.
B.
C.
D.
130.  If a broker-dealer should go bankrupt, the trustee appointed under the Securities Investor Protection Act is responsible for:
  1. Notifying the firm's customers that the firm is in the process of being liquidated
  2. Distribution of securities owned by customers that are held by the firm
  3. Seeing that the distribution of cash and securities are administered in an orderly manner
A.
B.
C.
D.
131.  A corporation intends to raise additional funds from its existing shareholders rather than using the services of an underwriter. The corporation would be engaging in a:
A.
B.
C.
D.
132.  XYZ corporation has 7,000,000 shares of common stock ($1 par value) authorized of which 5,000,000 shares have been issued. There are 500,000 shares of treasury stock. The current market price of XYZ is 20. The market capitalization of XYZ common stock is:
A.
B.
C.
D.
133.  An uncle is the custodian for a nephew's account. When the nephew reaches majority, the uncle:
A.
B.
C.
D.
134.  An investor purchases a 20-year 5% bond at par value which will yield 5 3/4% if called at the first call date in five years. The yield-to-maturity on bond is:
A.
B.
C.
D.
135.  Prior employer permission would be required for a registered representative to give public:
  1. Speeches
  2. Seminars
  3. Lectures
A.
B.
C.
D.
136.  A registered representative is accused of violating an SRO rule. The complaint is heard by a Hearing Panel of FINRA. All of the following are possible outcomes EXCEPT:
A.
B.
C.
D.
137.  Warrants would most likely be issued to:
A.
B.
C.
D.
138.  You are a registered representative servicing a joint tenants with rights of survivorship account for a married couple, Byron and Shelly Nelson. You also maintain an account for their adult son Frank. This morning you receive a phone call from Frank informing you that Byron has died. As part of helping his mother sort out the many details associated with his father's death, Frank requests that the assets in the account be transferred into an account in Shelly's name only. The first course of action would be to inform Frank that:
A.
B.
C.
D.
139.  A Suspicious Activity Report (SAR) should be filed:
A.
B.
C.
D.
140.  A corporation wishes to open a cash account. Which of the following is required?
A.
B.
C.
D.
141.  A customer owns stock of a corporation that has declared a $1 dividend to holders of record Monday, December 22nd. If the customer wishes to sell the stock but still be entitled to the dividend, he should sell the stock on:
  1. Wednesday, December 17th, regular-way settlement
  2. Thursday, December 18th, regular-way settlement
  3. Monday, December 22nd, cash settlement
  4. Tuesday, December 23rd, cash settlement
A.
B.
C.
D.
142.  Four municipal bonds have the same maturity date. Which of the following would cost an investor the greatest dollar amount when purchased?
A.
B.
C.
D.
143.  The current yield on a $1,000 par value 5% bond selling at $800 maturing in 10 years is:
A.
B.
C.
D.
144.  An investor owns $10,000 worth of XYZ Corporation convertible bonds callable at 102. Prior to the call the bonds are selling in the market at 103. If the corporation calls the bonds at the call price, the investor will receive:
A.
B.
C.
D.
145.  A stock closes at $37. The next day the stock sells ex-dividend $0.68 per share. At what price should the stock open the next day if it opens at the same level it closed the day before?
A.
B.
C.
D.
146.  Which of the following would probably be most leveraged?
A.
B.
C.
D.
147.  Which of the following would NOT require additional documentation to transfer stock?
A.
B.
C.
D.
148.  Under industry rules the final approval to open a new account is given by a(n):
A.
B.
C.
D.
149.  A corporation calls for redemption 1,000,000 shares of convertible preferred stock. The corporation announces that the convertible preferred will be redeemed at a price of $20 plus an accumulated dividend of 12 cents. Each share of preferred can be converted into 1/2 share of common. The preferred stock is selling at $19. There are 2,000,000 shares of common outstanding. Earnings for the common stock is $2.50 per share. The common stock is selling at 35.75. If all shares were converted, how many shares of common stock would be outstanding?
A.
B.
C.
D.
150.  A husband and wife have a joint account. If the husband instructed his RR to sell securities and send a check, the check could be made payable to:
A.
B.
C.
D.
151.  All of the following are true about warrants EXCEPT:
A.
B.
C.
D.
152.  Fully paid customer securities held at a brokerage firm:
A.
B.
C.
D.
153.  Jim and his brother Ed have the following accounts at a brokerage firm: Jim's cash account with $175,000 in securities Ed's margin account with $150,000 in equity A cash account for Jim and Ed as JTWROS with $200,000 in securities If the brokerage firm were to go bankrupt, SIPC would provide:
A.
B.
C.
D.
154.  An account executive has limited discretion over a customer's account. The account executive can:
A.
B.
C.
D.
155.  In which of the following situations must a broker-dealer file a Currency Transaction Report (CTR)?
A.
B.
C.
D.
156.  A customer contends that his registered representative made unauthorized trades in his account, and will take this matter to an arbitration panel. Regarding the makeup of this panel, which of the following statements is TRUE?
A.
B.
C.
D.
157.  An investor purchases a 4% bond at a premium and holds the bond to maturity. Which of the following could represent the yield to maturity on the bond?
A.
B.
C.
D.
158.  The proceeds of the sale of a municipal bond issue are invested in U.S. government securities that are sufficient to cover interest, principal, and call premiums on an outstanding bond issue. The outstanding bonds are called:
A.
B.
C.
D.
159.  Which of the following are true about SIPC?
  1. It was created by an Act of Congress and is considered a U.S. government agency.
  2. It is a nonprofit organization that only broker-dealers may join.
  3. It provides insurance for customer accounts in the event of bankruptcy by a broker-dealer.
  4. It provides insurance for customer accounts for fraud, embezzlement, and counterfeiting.
A.
B.
C.
D.
160.  A 5% $1,000 par value bond sells at $900 and is redeemed in 10 years. What is the amount of interest per year?
A.
B.
C.
D.
161.  A customer's margin account has a market value of $750,000 and a debit balance of $400,000. He also has a commodities account that has equity of $150,000. If the firm went bankrupt, SIPC would provide coverage to this customer for:
A.
B.
C.
D.
162.  Which of the following statements is true regarding a registered rep who has not completed the regulatory element training within 120 days of his registration anniversary?
A.
B.
C.
D.
163.  Which of the following would be a benefit of an account that is designated Transfer on Death (TOD)?
A.
B.
C.
D.
164.  The following dividend information for New York Stock Exchange listed common stocks is reported in The Wall Street Journal.
Quarterly
Company Dividend Record Date Payable Date
Cummings Corp. 50 cents 4/10 5/15
Federal Corp. 85 cents 4/13 5/25
General Electric Corp. 95 cents 4/8 5/21
A buyer of Cummings Corporation on May 10th:
A.
B.
C.
D.
165.  Which of the following statements are TRUE concerning custodian accounts?
A.
B.
C.
D.
166.  If an investor is primarily seeking capital gains, when would be the best time to buy bonds?
A.
B.
C.
D.
167.  Which of the following are TRUE regarding account statements that are sent by member firms to customers?
  1. Active accounts get monthly statements.
  2. Active accounts get quarterly statements.
  3. Inactive accounts get monthly statements.
  4. Inactive accounts get quarterly statements.
A.
B.
C.
D.
168.  Which of the following would NOT be considered a joint account?
  1. Two unrelated individuals as tenants in common
  2. Husband and wife as tenants with rights of survivorship
  3. An investment club managed by an investment adviser
  4. A mother and her minor child in an account under the UGMA
A.
B.
C.
D.
169.  All of the following would be included on an option confirmation EXCEPT:
A.
B.
C.
D.
170.  Concerning Moody's ratings, which is the most speculative in the investment grade category?
A.
B.
C.
D.
171.  Mr. Smith is associated with two other partners in an insurance partnership. He opens a cash account for the partnership. If Mr. Smith dies, what would the firm do as far as the partnership account is concerned?
A.
B.
C.
D.
172.  If SIPC does not cover a customer's account in a brokerage firm that has gone bankrupt, the investor would be a:
A.
B.
C.
D.
173.  An investment adviser opens an account for one of his clients. The registered representative opening the account would need all of the following EXCEPT:
A.
B.
C.
D.
174.  Upon learning of the death of a customer, a registered representative should do all of the following EXCEPT:
A.
B.
C.
D.
175.  The Board of Directors of a corporation is responsible for establishing all of the following EXCEPT the:
A.
B.
C.
D.
176.  Mr. Jones requests that his securities be held in street name. To honor his request, the broker-dealer must:
A.
B.
C.
D.
177.  The primary purpose of a self-regulatory organization (SRO) is to:
A.
B.
C.
D.
178.  ABC Corporation has a capitalization that consists of a large amount of debt securities relative to a small amount of equity securities. ABC Corporation would be considered to have a capitalization that is:
A.
B.
C.
D.
179.  Foremost Corporation has declared a quarterly dividend of 25 cents payable to stockholders of record on Friday, December 1st. An owner of Foremost Corporation who sold the stock on November 29th:
A.
B.
C.
D.
180.  Which of the following risk factors are the most important for purchasers of long-term high-grade bonds?
A.
B.
C.
D.
181.  A registered representative wants to open a new account for a client who is a resident of Mexico. Which two of the following statements are correct?
  1. Customer verification of the client's personal information is not required if the customer was referred by an existing client.
  2. Customer verification of the client's personal information is required under any circumstances.
  3. The client can have either a taxpayer identification number or a passport number and country of origin.
  4. The client must have a taxpayer identification number to open the account.
A.
B.
C.
D.
182.  A corporation wishes to open a cash account. Which of the following is required?
A.
B.
C.
D.
183.  An employee of a member firm opens an option account with another member firm. Which of the following statements are true?
  1. The employee needs written permission from his employer prior to opening the account.
  2. Duplicate confirmations must be sent to his employer.
  3. The employee needs permission from his employer each time a trade is executed.
A.
B.
C.
D.
184.  A registered rep holding limited discretionary authority over a customer's account may:
A.
B.
C.
D.
185.  The stock price of XYZ Corporation has remained stable despite the fact that the company has increased the amount of its dividend. Under these conditions, what would happen to the stock's current yield?
A.
B.
C.
D.
186.  Lazlo Toth, a registered representative with UAI Broker-Dealer, has a dispute with his firm over compensation. This dispute will be resolved by:
A.
B.
C.
D.
187.  The American Telephone Company announced in an ad in The Wall Street Journal that it intends to call for redemption all of its outstanding 10% callable bonds at 103 1/4 plus accrued interest. The market price of the bonds was 102 3/4 at the time of the announcement. Which alternative is most advantageous to the bondholder?
A.
B.
C.
D.
188.  Which of the following would be characteristic of a call protection provision?
A.