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.  All of the following are TRUE regarding the Uniform Gifts to Minors Act EXCEPT:
A.
B.
C.
D.
2.  Which of the following is NOT TRUE as it relates to a bond selling at a discount?
A.
B.
C.
D.
3.  All of the following would normally be a characteristic of a growth company EXCEPT that it has a:
A.
B.
C.
D.
4.  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.
5.  In establishing a defensive portfolio, which of the following types of company stocks should not be included?
A.
B.
C.
D.
6.  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.
7.  When comparing long-term bonds and short-term bonds, all of the following are true EXCEPT:
A.
B.
C.
D.
8.  Which of the following would have the least capital risk for a client?
A.
B.
C.
D.
9.  Concerning Moody's ratings, which is the most speculative in the investment grade category?
A.
B.
C.
D.
10.  Which of the following is TRUE regarding numbered accounts?
A.
B.
C.
D.
11.  Which of the following risk factors are the most important for purchasers of long-term high-grade bonds?
A.
B.
C.
D.
12.  Which of the following would be most likely considered a defensive stock?
A.
B.
C.
D.
13.  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.
14.  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.
15.  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.
16.  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.
17.  When a stock splits 5 for 4, by what percentage will the price of the stock be reduced?
A.
B.
C.
D.
18.  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.
19.  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.
20.  Which of the following would probably have the greatest fluctuation in price when interest rates move up or down?
A.
B.
C.
D.
21.  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.
22.  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.
23.  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.
24.  An account executive has limited discretion over a customer's account. The account executive can:
A.
B.
C.
D.
25.  All of the following would be included on an option confirmation EXCEPT:
A.
B.
C.
D.
26.  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.
27.  If an investor is primarily seeking capital gains, when would be the best time to buy bonds?
A.
B.
C.
D.
28.  Discretionary accounts require:
A.
B.
C.
D.
29.  All of the following should be obtained by a registered representative when opening a new account for a customer EXCEPT:
A.
B.
C.
D.
30.  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.
31.  A municipal bond issue with an inverted yield scale would have:
A.
B.
C.
D.
32.  The Securities Investors Protection Corporation (SIPC) insures all of the following accounts EXCEPT:
A.
B.
C.
D.
33.  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.
34.  Which of the following would be an invalid endorsement on a stock certificate?
A.
B.
C.
D.
35.  Fully paid customer securities held at a brokerage firm:
A.
B.
C.
D.
36.  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.
37.  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.
38.  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.
39.  All of the following are true about a bond issue having serial maturities EXCEPT:
A.
B.
C.
D.
40.  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.
41.  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.
42.  If the Federal Reserve Board increased the discount rate, you would expect:
A.
B.
C.
D.
43.  Which of the following would be acceptable as a custodian on a UGMA account?
A.
B.
C.
D.
44.  Which of the following transactions must be executed in a cash account?
A.
B.
C.
D.
45.  The securities that are deposited in an escrow account for an advanced refunding are:
A.
B.
C.
D.
46.  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.
47.  The purpose of cumulative voting is to:
A.
B.
C.
D.
48.  Exclusions from the definition of an investment adviser are given to which of the following?
A.
B.
C.
D.
49.  Prior employer permission would be required for a registered representative to give public:
  1. Speeches
  2. Seminars
  3. Lectures
A.
B.
C.
D.
50.  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.
51.  Which of the following statements are TRUE concerning custodian accounts?
A.
B.
C.
D.
52.  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.
53.  A common shareholder has all of the following rights EXCEPT the right to:
A.
B.
C.
D.
54.  Concerning arbitration, all of the following are TRUE EXCEPT:
A.
B.
C.
D.
55.  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.
56.  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.
57.  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.
58.  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.
59.  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.
60.  The current yield on a $1,000 par value 5% bond selling at $800 maturing in 10 years is:
A.
B.
C.
D.
61.  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.
62.  A corporation would primarily split its stock to:
A.
B.
C.
D.
63.  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.
64.  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.
65.  Which of the following Moody's rated bonds would be considered speculative?
A.
B.
C.
D.
66.  Which of the following statements is true regarding warrants?
A.
B.
C.
D.
67.  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.
68.  A customer would like to open an account designated by number. The registered representative should:
A.
B.
C.
D.
69.  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.
70.  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.
71.  A client would like all trade confirmations sent to his investment adviser. This will require:
A.
B.
C.
D.
72.  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.
73.  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.
74.  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.
75.  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.
76.  Which of the following would probably be most leveraged?
A.
B.
C.
D.
77.  The purpose of a sinking fund is for redeeming a corporation's
A.
B.
C.
D.
78.  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.
79.  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.
80.  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.
81.  All of the following are true regarding discretionary accounts EXCEPT:
A.
B.
C.
D.
82.  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.
83.  Which two of the following are NOT SROs?
  1. MSRB
  2. SIPC
  3. FINRA
  4. SEC
A.
B.
C.
D.
84.  Which of the following statements is true regarding a custodian account?
A.
B.
C.
D.
85.  During periods of tight money, when the yield curve becomes inverted, the highest yield would probably be found in:
A.
B.
C.
D.
86.  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.
87.  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.
88.  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.
89.  The number of custodians allowed for each minor under the Uniform Gifts to Minors Act may not be more than:
A.
B.
C.
D.
90.  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.
91.  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.
92.  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.
93.  Which of the following could not be accomplished in a cash account?
A.
B.
C.
D.
94.  Which of the following are TRUE when a corporation opens a cash account with a brokerage firm?
  1. A new account form must be completed.
  2. A corporate resolution must be filed with the brokerage firm.
  3. Stock purchases for the corporation must be registered in the corporation's name.
  4. Stock purchases for the corporation must be registered in the name of the president of the corporation.
A.
B.
C.
D.
95.  Which of the following proxy rules would be correct regarding customer securities held in "street name" by a brokerage firm?
A.
B.
C.
D.
96.  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 value of the outstanding common stock on the balance sheet is:
A.
B.
C.
D.
97.  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.