#1. Which of the following is a self-regulatory organization (SRO)?
#2. What is the primary purpose of the Securities Act of 1933?
#3. Which of the following securities is typically issued at a discount and matures at par within one year?
#4. Which of the following securities represents ownership in a corporation?
#5. Which investment company continuously issues new shares and redeems them at net asset value (NAV)?
#6. Which account type allows customers to borrow money from a broker-dealer to purchase securities?
#7. A market order is best described as an order to:
#8. Which federal agency is primarily responsible for enforcing federal securities laws?
#9. SIPC protection applies to which of the following?
#10. Which of the following is a characteristic of common stock?
#11. Which of the following best describes a bond’s coupon rate?
#12. Which of the following securities is typically considered a money market instrument?
#13. Which risk is most associated with purchasing long-term bonds?
#14. Which of the following is a non-diversifiable risk?
#15. A customer concerned about inflation eroding the purchasing power of her investments is primarily worried about:
#16. Which option strategy is used to hedge a long stock position against a short-term decline in price?
#17. Which of the following best describes a call option?
#18. What is the maximum loss for the buyer of a call option?
#19. Which of the following types of orders is designed to protect a profit or limit a loss on an existing position?
#20. Which of the following orders is most appropriate for an investor who wants to buy stock only if the market price falls to a specific level or lower?
#21. In a new corporate bond issue, which party acts as the intermediary between the issuer and the investors?
#22. Which market is characterized by trades taking place directly between investors rather than with the issuer?
#23. Which of the following best describes a firm-commitment underwriting?
#24. Which of the following is a characteristic of a closed-end investment company?
#25. What does the term net asset value (NAV) represent for a mutual fund?
#26. Which share class of a mutual fund typically has a front-end sales charge?
#27. Which of the following is TRUE of an exchange-traded fund (ETF)?
#28. Which of the following investments is typically structured as a pass-through entity for tax purposes?
#29. Which of the following is the federal insurance program that protects bank deposits up to applicable limits?
#30. Which of the following is a characteristic of Treasury notes?
#31. Which of the following would be considered an example of a derivative security?
#32. Which of the following is most associated with credit risk?
#33. Which of the following statements about municipal bonds is TRUE?
#34. Which of the following is a direct obligation of the U.S. government?
#35. Which of the following is a function of the Federal Reserve Board?
#36. Which economic indicator is considered a leading indicator of future economic activity?
#37. A prolonged period of declining stock prices and pessimism is best described as:
#38. Which of the following best describes a progressive tax?
#39. Which of the following investments is most appropriate for an investor seeking tax-free income?
#40. Which of the following account registrations is typically used for a minor with an adult custodian?
#41. Which of the following allows two or more people to own an account with equal undivided interest and right of survivorship?
#42. Under the know-your-customer rule, a registered representative is required to:
#43. Under Regulation BI, broker-dealers must act in the:
#44. Which of the following documents is typically provided to customers at or before the time of account opening?
#45. A customer’s investment profile includes which of the following?
#46. Which of the following would be considered a prohibited practice under FINRA rules?
#47. Front-running generally refers to:
#48. Churning in a customer account refers to:
#49. A retail communication that promotes a specific mutual fund and is distributed to more than 25 retail investors in a 30-day period is classified as:
#50. Which of the following must be reported on a suspicious activity report (SAR)?
#51. The primary purpose of anti-money laundering (AML) regulations is to:
#52. Which of the following best describes the role of a transfer agent?
#53. Which of the following is an example of a non-systematic risk?
#54. Diversification is primarily used to reduce:
#55. Which of the following best describes dollar-cost averaging?
#56. Which of the following investors would be MOST suitable for a growth mutual fund?
#57. Which of the following is typically considered the safest type of money market instrument?
#58. Which of the following has the greatest exposure to prepayment risk?
#59. Which of the following best describes a variable annuity?
#60. During the accumulation phase of a variable annuity, the investor’s interest is measured in:
#61. Which of the following would be most appropriate for an investor seeking current income and willing to accept credit risk?
#62. Which of the following investments is likely to have the highest interest-rate sensitivity?
#63. Which of the following orders is activated when the market price touches or goes through a specified price, then becomes a market order?
#64. A customer who sells short 100 shares of stock believes the stock price will:
#65. Which of the following best describes a buy stop order?
#66. Which of the following is TRUE regarding discretionary accounts?
#67. Which of the following statements about margin accounts is TRUE?
#68. Which of the following is an example of a prohibited recommendation under suitability rules?
#69. Which document must accompany or precede the sale of a new mutual fund share to a customer?
#70. Form CRS is primarily intended to:
#71. Which of the following statements about insider trading is TRUE?
#72. Which of the following is considered a restricted person under the FINRA IPO rules?
#73. Which of the following is a key feature of a 529 college savings plan?
#74. Which retirement plan is established by an employer for eligible employees and allows pretax contributions?
#75. Which of the following statements about traditional IRAs is TRUE?
