Annie Stc Quiz Part 1

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

  
Changes are done, please start the quiz.


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1.  The purpose of cumulative voting is to:
A.
B.
C.
D.
2.  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.
3.  American Telephone Company of Ohio is offering $50,000,000 worth of 9% bonds at a price of 99.25% of par value. An investor buying the bonds would receive yearly interest of:
A.
B.
C.
D.
4.  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.
5.  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.
6.  The number of custodians allowed for each minor under the Uniform Gifts to Minors Act may not be more than:
A.
B.
C.
D.
7.  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.
8.  The Board of Directors of a corporation is responsible for establishing all of the following EXCEPT the:
A.
B.
C.
D.
9.  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.
10.  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.
11.  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.
12.  Fully paid customer securities held at a brokerage firm:
A.
B.
C.
D.
13.  In establishing a defensive portfolio, which of the following types of company stocks should not be included?
A.
B.
C.
D.
14.  Which of the following statements is true regarding warrants?
A.
B.
C.
D.
15.  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.
16.  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.
17.  All of the following are true about a bond issue having serial maturities EXCEPT:
A.
B.
C.
D.
18.  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.
19.  Under what circumstances may a husband and wife both be custodians for a minor's account?
A.
B.
C.
D.
20.  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.
21.  A client would like all trade confirmations sent to his investment adviser. This will require:
A.
B.
C.
D.
22.  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.
23.  Arbitration decisions are:
A.
B.
C.
D.
24.  Mr. Jones has a margin account in which there is activity each month. The firm would send Mr. Jones an account statement:
A.
B.
C.
D.
25.  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.
26.  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.
27.  A new convertible bond has a provision that it cannot be called for five years after the issue date. This call protection would be most valuable to a recent purchaser of the bond if:
A.
B.
C.
D.
28.  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.
29.  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.
30.  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.
31.  Mr. Jones requests that his securities be held in street name. To honor his request, the broker-dealer must:
A.
B.
C.
D.
32.  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.
33.  Which of the following could be found on a customer's confirmation?
  1. If the firm acted as principal
  2. If the firm acted as the customer's agent
  3. If the firm acted for a third party
  4. If the firm is a bona fide market maker in the security
A.
B.
C.
D.
34.  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.
35.  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.
36.  Municipal bond rating organizations are primarily concerned with the risk of:
A.
B.
C.
D.
37.  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.
38.  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.
39.  Which of the following would be considered advertising?
A.
B.
C.
D.
40.  SEC regulations state that a brokerage firm must provide a current financial statement (balance sheet) to:
A.
B.
C.
D.
41.  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.
42.  A municipality would refund a revenue bond issue for all of the following reasons EXCEPT to:
A.
B.
C.
D.
43.  A registered representative who wishes to have outside employment must notify and receive permission from the:
A.
B.
C.
D.
44.  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.
45.  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.
46.  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.
47.  A corporation is contemplating the refunding of its debt issues. The refunding could accomplish which of the following?
  1. Reduce interest costs
  2. Change the maturity schedule of the corporation's debt
  3. Remove restrictive provisions from the indenture
A.
B.
C.
D.
48.  Which of the following would most likely have a mandatory sinking fund?
A.
B.
C.
D.
49.  Warrants would most likely be issued to:
A.
B.
C.
D.
50.  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.
51.  A .05 change in basis would have the greatest effect on which of the following 6.00% coupon bonds?
A.
B.
C.
D.
52.  Which of the following risk factors are the most important for purchasers of long-term high-grade bonds?
A.
B.
C.
D.
53.  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.
54.  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.
55.  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.
56.  Of the different securities listed below, the one with the longest expiration date would normally be a:
A.
B.
C.
D.
57.  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. Bondholders who owned 12% bonds maturing in 2020 will receive:
A.
B.
C.
D.
58.  Which of the following statements are TRUE concerning custodian accounts?
A.
B.
C.
D.
59.  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.
60.  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.
61.  Which of the following is NOT TRUE as it relates to a bond selling at a discount?
A.
B.
C.
D.
62.  Why would a new account be designated TOD?
A.
B.
C.
D.
63.  The primary purpose of a self-regulatory organization (SRO) is to:
A.
B.
C.
D.
64.  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.
65.  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.
66.  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.
67.  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.
68.  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.
69.  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.
70.  Which of the following are types of joint accounts?
  1. UTMA
  2. Rights of survivorship
  3. Tenants in common
  4. Transfer on death
A.
B.
C.
D.
71.  All of the following are true about treasury stock EXCEPT it:
A.
B.
C.
D.
72.  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.
73.  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.
74.  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.
75.  Concerning Moody's ratings, which is the most speculative in the investment grade category?
A.
B.
C.
D.
76.  All of the following are true regarding the role of a transfer agent EXCEPT that the transfer agent:
A.
B.
C.
D.
77.  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.
78.  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.
79.  An investor who has granted power of attorney to his son dies. The power of attorney:
A.
B.
C.
D.
80.  All of the following are true about warrants EXCEPT:
A.
B.
C.
D.
81.  The current yield on a $1,000 par value 5% bond selling at $800 maturing in 10 years is:
A.
B.
C.
D.
82.  Under industry rules the final approval to open a new account is given by a(n):
A.
B.
C.
D.
83.  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.
84.  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.
85.  As far as rights offerings are concerned:
A.
B.
C.
D.
86.  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.
87.  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.
88.  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.
89.  All of the following are TRUE about discretionary accounts EXCEPT:
A.
B.
C.
D.
90.  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.
91.  All of the following are TRUE of treasury stock EXCEPT it:
A.
B.
C.
D.
92.  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.
93.  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.
94.  All of the following should be obtained by a registered representative when opening a new account for a customer EXCEPT:
A.
B.
C.
D.
95.  Which of the following would have the least capital risk for a client?
A.
B.
C.
D.
96.  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.
97.  Prior employer permission would be required for a registered representative to give public:
  1. Speeches
  2. Seminars
  3. Lectures
A.
B.
C.
D.
98.  Which of the following best describes a wrap account?
A.
B.
C.
D.
99.  Discretionary accounts require:
A.
B.
C.
D.
100.  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.
101.  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.
102.  An account executive has limited discretion over a customer's account. The account executive can:
A.
B.
C.
D.
103.  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.
104.  During periods of tight money, when the yield curve becomes inverted, the highest yield would probably be found in:
A.
B.
C.
D.
105.  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.
106.  Which of the following is TRUE regarding numbered accounts?
A.
B.
C.
D.
107.  Which of the following pertain to ADRs?
  1. They facilitate the trading of foreign securities in U.S. markets.
  2. They facilitate the trading of U.S. securities in foreign markets.
  3. They are receipts issued for foreign securities.
  4. They are receipts issued for U.S. securities.
A.
B.
C.
D.
108.  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.
109.  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.
110.  From the issuer's perspective, when comparing term bonds and serial bonds, serial bonds have:
A.
B.
C.
D.
111.  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.
112.  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.
113.  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.
114.  When a stock splits 5 for 4, by what percentage will the price of the stock be reduced?
A.
B.
C.
D.
115.  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.
116.  Alabama Power 5 1/4s of '08 are listed in the bond table as having closed the previous day at 88 3/4. A buyer of 10 bonds at the close would have to pay:
A.
B.
C.
D.
117.  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 would tender (submit) his rights to:
  1. JPMorgan Chase
  2. Bank of America
  3. Goldman Sachs
  4. Morgan Stanley
A.
B.
C.
D.
118.  Which of the following would be most suitable for a Non-Managed Fee-Based Account?
A.
B.
C.
D.
119.  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.
120.  Term bond quotes are based on:
A.
B.
C.
D.
121.  Upon learning of the death of a customer, a registered representative should do all of the following EXCEPT:
A.
B.
C.
D.
122.  Which of the following proxy rules would be correct regarding customer securities held in "street name" by a brokerage firm?
A.
B.
C.
D.
123.  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.
124.  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.
125.  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.
126.  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.
127.  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.
128.  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.
129.  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.
130.  All of the following are TRUE regarding the Uniform Gifts to Minors Act EXCEPT:
A.
B.
C.
D.
131.  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.
132.  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.
133.  All of the following are true about a dividend paid by a corporation to its shareholders EXCEPT the dividend:
A.
B.
C.
D.
134.  Which of the following would be most likely considered a defensive stock?
A.
B.
C.
D.
135.  A corporation's shareholders must vote for:
A.
B.
C.
D.
136.  A company declares a forward stock split. What is the effect on the stock's par value?
A.
B.
C.
D.
137.  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.
138.  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.
139.  Which of the following would be an invalid endorsement on a stock certificate?
A.
B.
C.
D.
140.  Exclusions from the definition of an investment adviser are given to which of the following?
A.
B.
C.
D.
141.  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.
142.  When a bond is registered as to principal only, this means that the bond has been issued:
A.
B.
C.
D.
143.  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.
144.  A customer wants to open a cash account. All of the following are required on the new account form EXCEPT:
A.
B.
C.
D.
145.  All of the following are true regarding discretionary accounts EXCEPT:
A.
B.
C.
D.
146.  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.
147.  Which of the following would probably be most leveraged?
A.
B.
C.
D.
148.  To whom may a registered representative appeal a finding by a Hearing Panel?
A.
B.
C.
D.
149.  Supplemental documentation would be required when opening all of the following types of accounts EXCEPT:
A.
B.
C.
D.
150.  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.
151.  A customer wants safety and preservation of capital. He should purchase:
A.
B.
C.
D.
152.  A registered rep holding limited discretionary authority over a customer's account may:
A.
B.
C.
D.
153.  If a registered representative is opening an account for an investor, the registered representative would need to know all of the following information EXCEPT
A.
B.
C.
D.
154.  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.
155.  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.
156.  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.
157.  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.
158.  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.
159.  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.
160.  Which of the following would increase most in price if interest rates decline?
A.
B.
C.
D.
161.  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.
162.  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.
163.  All of the following are TRUE regarding accounts established under the Uniform Gifts to Minors Act EXCEPT the:
A.
B.
C.
D.
164.   A bond is selling at a premium. This is indicative of all of the following EXCEPT:
A.
B.
C.
D.
165.  An uncle is the custodian for a nephew's account. When the nephew reaches majority, the uncle:
A.
B.
C.
D.
166.  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.
167.  SIPC is a(n):
A.
B.
C.
D.
168.  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.