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Related Flashcards
Cards In This Set
| Front | Back |
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Preferred stock has all of the following features as compared to common stock except:
a.) Fixed rate of return b.) Fixed maturity c.) Prior claim to dividends declared d.) Priority claim to assets upon dissolution |
B
fixed matuirty |
|
An officer of a trust wishes to open up a margin account with your firm. This is allowed:
a.) If the trust agreement specifically authorizes the opening of a margin account b.) As long as the new account form has been properly completed c.) If an officer of a trust provides letter of guarante d.) Only with the prior approval of a branch manager |
A
If ther trust agreement specially authorizes the opening of a margin account |
|
Under rule 147, intrastate offerings cannot be resold out of state for how long after the sale date
a.) 3 months b.) 6 months c.) 9 months d.) 12 months |
C
9 months |
|
Under rule 144, no filing is required if the sale amount every 90 days does not exceed:
a.) 100 shares worth a maximum of $10,000 b.) 5,000 shares worth a maximum of $100,00 c.) 5,000 shares worth a maximum of $50,000 d.) 10,000 shares worth a maximum of $1,000000 |
C
5,000 shares worth a maximum of $50,000 |
|
Under rule 144, a customer wishing to sell must file the 144 "notice of sale" with the SEC:
a.) 10 business days prior to the placement of the sell order b.) concurrent with placement of the sell order c.) 10 business days after the placement of the sell order d.) 90 days after the placement of the sell order |
B
Must be concurrent with placement of the sell order |
|
The spread on a competitive bid municipal issue is:
A.) difference between production and bid B) difference between state yield and reoffering yield C) premium included on bid form D) excess of the dollar bid above par |
A
Difference between production and a bid |
|
A customer wishes to give a gift of securities to her nephew under UGMA. Which is true?
A) only parents can be custodians B) the account can only be opened with written permission of the minor C) only need to be on states legal list D) The account can be opened |
D
The account can be opened |
|
The placement ratio has been steadily increasing over the last 30 days. This means:
A) municipal interest rates will fall
B) municipal interest rates will rise C) municipal dealers have a low inventory position D) municipal dealer have a high inventory position |
C
Municiapl dealers have a low inventory position |
|
All of the following terms relate to corporate underwritings except:
A) firm B) stand by C) not held D) all or none |
C
not held |
|
A customer buys 1 ABC Oct 50 Call @ $3 and exercises the contract. What is the cost basis for tax purposes?
A) 3 B) 47 C) 50 D) 53 |
D
53 |
|
The visible supply would include all of the following except:
A) GO Bonds B) Revenue Bonds C) Industrial Revenue Bonds D) Bond Anticipation Notes |
D
BANs |
|
Which bond buyer index contains the highest quality issues
A) 11 bond index B) 20 bond index C) revdex D) munidex |
A
11 bond index |
|
LEAP options with over 9 months to expiration:
A) cannot be purchased in a margin account B) can be purchased on 25% margin C) can be purchased on 50% margin D) can be purchased on 75% margin |
D
can be purchased on 75% margin |
|
Which position would receive the greatest reduced margin benefit from portfolio margining?
A) short naked call B) long stock/long put C) short stock/short put D) long call/long put |
B
long stock/long put |
|
The loan value of a LEAP option with over 9 months to expiration is:
A) 0% B) 25 % C) 50% D) 100% |
B
25% |
