Annie Stc Quiz Part 1

256 Questions  I  By Annchong71
annie stc quiz part 1
Private quiz for Annie covering Chap 1 to Chap 5.

  
Changes are done, please start the quiz.


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1.  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.
2.  Of the different securities listed below, the one with the longest expiration date would normally be a:
A.
B.
C.
D.
3.  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.
4.  When comparing long-term bonds to short-term bonds, all of the following are TRUE EXCEPT:
A.
B.
C.
D.
5.  A customer wants to open a cash account. All of the following are required on the new account form EXCEPT:
A.
B.
C.
D.
6.  ABC Corporation is paying a $5 yearly dividend on its preferred stock. The market price of the preferred stock is $80. The current yield is:
A.
B.
C.
D.
7.  Which of the following would be acceptable as a custodian on a UGMA account?
A.
B.
C.
D.
8.  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.
9.  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. Which of the following alternatives would be least attractive to a preferred stockholder?
A.
B.
C.
D.
10.  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.
11.  Concerning Moody's ratings, which is the most speculative in the investment grade category?
A.
B.
C.
D.
12.  Term bond quotes are based on:
A.
B.
C.
D.
13.  The purpose of cumulative voting is to:
A.
B.
C.
D.
14.  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.
15.  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.
16.  An investor who has granted power of attorney to his son dies. The power of attorney:
A.
B.
C.
D.
17.  A corporation has declared a two for one stock split payable on November 30th to holders of record on November 1st. The ex-date is December 1st. The first day that the stock will trade without a due bill attached is:
A.
B.
C.
D.
18.  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.
19.  All of the following would normally be a characteristic of a growth company EXCEPT that it has a:
A.
B.
C.
D.
20.  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.
21.  Mr. Jones requests that his securities be held in street name. To honor his request, the broker-dealer must:
A.
B.
C.
D.
22.  Two brothers open a joint account to trade options. Who will be required to sign the option agreement?
A.
B.
C.
D.
23.  Fully paid customer securities held at a brokerage firm:
A.
B.
C.
D.
24.  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.
25.  Which of the following proxy rules would be correct regarding customer securities held in "street name" by a brokerage firm?
A.
B.
C.
D.
26.  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.
27.  If an investor is primarily seeking capital gains, when would be the best time to buy bonds?
A.
B.
C.
D.
28.  All of the following are TRUE regarding the Uniform Gifts to Minors Act EXCEPT:
A.
B.
C.
D.
29.  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.
30.  Which of the following would have the least capital risk for a client?
A.
B.
C.
D.
31.  Which two of the following are NOT SROs?
  1. MSRB
  2. SIPC
  3. FINRA
  4. SEC
A.
B.
C.
D.
32.  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.
33.  A notice is published stating that RMO 5% convertible preferred stock will be called at $60 per share. The preferred is convertible into 1/2 share of common and is selling in the market at $56 per share. RMO common stock is selling in the market at $110 per share. After the notice appears, the price of the preferred stock will most likely trade in the market at:
A.
B.
C.
D.
34.  In establishing a defensive portfolio, which of the following types of company stocks should not be included?
A.
B.
C.
D.
35.  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.
36.  Which of the following would be characteristic of a call protection provision?
A.
B.
C.
D.
37.  Which of the following outside business activities would RRs NOT have to report to their employing broker-dealer?
A.
B.
C.
D.
38.  When a stock splits 5 for 4, by what percentage will the price of the stock be reduced?
A.
B.
C.
D.
39.  A customer of a member firm goes on vacation and notifies the member firm in writing as to what should be done with his mail. All of the following are true EXCEPT:
A.
B.
C.
D.
40.  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.
41.  All of the following would be included on an option confirmation EXCEPT:
A.
B.
C.
D.
42.  All of the following are true regarding the role of a transfer agent EXCEPT that the transfer agent:
A.
B.
C.
D.
43.  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.
44.  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.
45.  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.
46.  Upon learning of the death of a customer, a registered representative should do all of the following EXCEPT:
A.
B.
C.
D.
47.  When is the regulatory element of continuing education required to be completed by a registered rep?
  1. On the second anniversary of initial registration
  2. On the third anniversary of initial registration
  3. Every two years thereafter
  4. Every three years thereafter
A.
B.
C.
D.
48.  Which of the following would be considered advertising?
A.
B.
C.
D.
49.  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.
50.  As far as rights offerings are concerned:
A.
B.
C.
D.
51.  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.
52.  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.
53.  Which of the following companies would most likely pay a dividend in stock rather than cash?
A.
B.
C.
D.
54.  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.
55.  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.
56.  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.
57.  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.
58.  The Securities Investors Protection Corporation (SIPC) insures all of the following accounts EXCEPT:
A.
B.
C.
D.
59.  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.
60.  All of the following are true about treasury stock EXCEPT it:
A.
B.
C.
D.
61.  From the issuer's perspective, when comparing term bonds and serial bonds, serial bonds have:
A.
B.
C.
D.
62.  Which of the following would be a benefit of an account that is designated Transfer on Death (TOD)?
A.
B.
C.
D.
63.  A corporation has a 9% cumulative preferred stock issue outstanding. The company paid a $7 dividend in 2002 and $8 in 2003. If the company wants to pay a common stock dividend in 2004, the cumulative preferred stockholders must first receive a dividend of:
A.
B.
C.
D.
64.  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.
65.  The number of custodians allowed for each minor under the Uniform Gifts to Minors Act may not be more than:
A.
B.
C.
D.
66.  All of the following are true about a dividend paid by a corporation to its shareholders EXCEPT the dividend:
A.
B.
C.
D.
67.  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.
68.  All of the following are true regarding discretionary accounts EXCEPT:
A.
B.
C.
D.
69.  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.
70.  A tombstone ad states that the McGee Oil Company is offering $200,000,000 of 8 1/2% bonds due July 1, 2026 at 99 1/2% of their par value. The yield-to-maturity on the bond is:
A.
B.
C.
D.
71.  Which of the following would probably have the greatest fluctuation in price when interest rates move up or down?
A.
B.
C.
D.
72.  An investor owns a $100 convertible preferred stock which is convertible into 2 shares of common stock. The common is selling at $52 and the preferred is selling at $104. The preferred stock is called at 105. What should the investor do?
A.
B.
C.
D.
73.  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.
74.  When comparing long-term bonds and short-term bonds, all of the following are true EXCEPT:
A.
B.
C.
D.
75.  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.
76.  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.
77.  A municipal bond with a 6% coupon is priced to a 7% basis. If this bond's yield-to-maturity increased by 40 basis points:
A.
B.
C.
D.
78.  Why would a new account be designated TOD?
A.
B.
C.
D.
79.  If a client's account is inactive, how often does a statement have to be mailed?
A.
B.
C.
D.
80.  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.
81.  Under what circumstances may a husband and wife both be custodians for a minor's account?
A.
B.
C.
D.
82.  An outstanding municipal bond would most likely be called when interest rates:
A.
B.
C.
D.
83.  Ashton purchased 100 shares of XYZ common stock in January 2003, at a price of $25 per share. XYZ pays a quarterly dividend of $.25 per share. Today, XYZ closed at $30 per share. What is the dividend yield of XYZ common stock?
A.
B.
C.
D.
84.  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.
85.  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.
86.  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.
87.  Which two of the following are TRUE when opening new customer accounts?
  1. A P.O. box may be shown as the customer's address on the new account form.
  2. A street address must be reflected on the new account form.
  3. Customer correspondence may be sent to a P.O. box.
  4. Customer correspondence may not be sent to a P.O. box.
A.
B.
C.
D.
88.  Exclusions from the definition of an investment adviser are given to which of the following?
A.
B.
C.
D.
89.  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.
90.  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.
91.  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.
92.  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.
93.  When a bond is registered as to principal only, this means that the bond has been issued:
A.
B.
C.
D.
94.  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.
95.  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.
96.  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.
97.  To whom may a registered representative appeal a finding by a Hearing Panel?
A.
B.
C.
D.
98.  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.
99.  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.
100.  All of the following are TRUE of treasury stock EXCEPT it:
A.
B.
C.
D.
101.  To apply for a securities license, a previously unregistered individual must:
  1. Complete Form U5
  2. Complete Form U4
  3. File the necessary form with FINRA
  4. File the necessary form with the SEC
A.
B.
C.
D.
102.  Which of the following is NOT TRUE as it relates to a bond selling at a discount?
A.
B.
C.
D.
103.  The current yield on a $1,000 par value 5% bond selling at $800 maturing in 10 years is:
A.
B.
C.
D.
104.  Which of the following would most likely have a mandatory sinking fund?
A.
B.
C.
D.
105.  An account executive has limited discretion over a customer's account. The account executive can:
A.
B.
C.
D.
106.  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.
107.  A registered representative wants to open a joint account for the dentists in his office building. Dr. White and Dr. Enamel will each contribute equally to the account but each dentist wants his portion of the account to pass to his own estate. Which two of the following are correct?
  1. The account should be established as Joint Tenants with Right of Survivorship
  2. The account should be established as Tenants in Common
  3. All dividends and capital gains in the account will be reported by the brokerage firm under one social security number
  4. All dividends and capital gains in the account will be reported by the brokerage firm on a percentage of ownership basis
A.
B.
C.
D.
108.  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.
109.  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.
110.  Which of the following is TRUE regarding numbered accounts?
A.
B.
C.
D.
111.  All of the following statements regarding the privacy notice of a broker dealer are true EXCEPT:
A.
B.
C.
D.
112.  A client purchases $800,000 of stock in a margin account and deposits the Regulation T margin requirement. If the current value of the stock is $700,000 and the broker-dealer declares bankruptcy, SIPC would cover:
A.
B.
C.
D.
113.  Which of the following statements is true regarding warrants?
A.
B.
C.
D.
114.  The purpose of a sinking fund is for redeeming a corporation's
A.
B.
C.
D.
115.  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.
116.  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 owns 87 shares of the XYZ Corporation. How many shares can he subscribe to and how much will it cost him?
A.
B.
C.
D.
117.  All of the following should be obtained by a registered representative when opening a new account for a customer EXCEPT:
A.
B.
C.
D.
118.  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.
119.  An aunt wishes to give her niece some securities as a gift. The niece's parents have recently died and a court has appointed a guardian other than the aunt. The aunt:
A.
B.
C.
D.
120.  Which of the following Moody's rated bonds would be considered speculative?
A.
B.
C.
D.
121.  Which of the following best describes a wrap account?
A.
B.
C.
D.
122.  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.
123.  Which of the following transactions must be executed in a cash account?
A.
B.
C.
D.
124.  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.
125.  Warrants would most likely be issued to:
A.
B.
C.
D.
126.  If the Federal Reserve Board increased the discount rate, you would expect:
A.
B.
C.
D.
127.  Which of the following statements is TRUE concerning the responsibilities of a principal at a broker-dealer?
A.
B.
C.
D.
128.  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.
129.  A client would like all trade confirmations sent to his investment adviser. This will require:
A.
B.
C.
D.
130.   A bond is selling at a premium. This is indicative of all of the following EXCEPT:
A.
B.
C.
D.
131.  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.
132.  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.
133.  Which of the following would be considered a fiduciary?
  1. A trustee
  2. A guardian
  3. An administrator of an estate
  4. An executor of an estate
A.
B.
C.
D.
134.  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.
135.  A customer wants safety and preservation of capital. He should purchase:
A.
B.
C.
D.
136.  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.
137.  Which of the following would be most likely considered a defensive stock?
A.
B.
C.
D.
138.  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.
139.  All of the following are TRUE regarding accounts established under the Uniform Gifts to Minors Act EXCEPT the:
A.
B.
C.
D.
140.  A Suspicious Activity Report (SAR) should be filed:
A.
B.
C.
D.
141.  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.
142.  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.
143.  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.
144.  SEC regulations state that a brokerage firm must provide a current financial statement (balance sheet) to:
A.
B.
C.
D.
145.  The market price of ABC Corporation common stock is $56. The yearly dividend is $3. The quarterly dividend is 75 cents. What is the current yield of the stock?
A.
B.
C.
D.
146.  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.
147.  Briana Corporation, an existing public company, is offering 500,000 shares of common stock to the public through an underwriting syndicate. The prospectus states that 250,000 shares are being offered by selling stockholders and 250,000 shares are being offered by Briana Corporation. The effect of this offering will be:
  1. A dilution in the earnings per common share
  2. An increase inthe earnings per share
  3. The number of shares outstanding will increase by 500,000
  4. The number of shares outstanding will increase by 250,000
A.
B.
C.
D.
148.  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.
149.  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.
150.  Discretionary accounts require:
A.
B.
C.
D.
151.  Which of the following statements is true regarding a custodian account?
A.
B.
C.
D.
152.  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.
153.  One of your clients informs your firm that she will be traveling in Europe and would like your firm to hold all of her confirmations and statements. How long may your firm do this?
A.
B.
C.
D.
154.  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.
155.  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.
156.  Which of the following would be most suitable for a Non-Managed Fee-Based Account?
A.
B.
C.
D.
157.  Advertisements regarding options:
  1. Must be submitted to the exchange 15 days prior to initial use
  2. Must be submitted to the exchange 10 days prior to initial use
  3. Must be kept on file by the member firm for six years
  4. Must be kept on file by the member firm for three years
A.
B.
C.
D.
158.  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.
159.  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.
160.  Persons who meet the definition of an investment adviser but are exempt from the registration requirements of the Investment Advisers Act of 1940 are:
A.
B.
C.
D.
161.  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.
162.  A company declares a forward stock split. What is the effect on the stock's par value?
A.
B.
C.