#1. Which of the following securities is issued by a foreign company but trades in U.S. markets in U.S. dollars?
#2. Which of the following best describes a rights offering?
#3. Which of the following securities typically has the highest claim in a corporate liquidation?
#4. Treasury Inflation-Protected Securities (TIPS) are designed primarily to protect investors from:
#5. Which of the following municipal bonds is backed primarily by the full faith, credit, and taxing power of the issuer?
#6. Revenue bonds are primarily backed by:
#7. Which of the following is a characteristic of callable bonds?
#8. If a bond is trading at a discount, which yield will be the highest?
#9. Which of the following securities is LEAST likely to be callable?
#10. Which of the following best describes a limited partnership?
#11. Direct participation programs (DPPs) generally provide investors with:
#12. Which of the following is TRUE regarding exchange-traded notes (ETNs)?
#13. Which of the following investors would be MOST concerned about liquidity risk?
#14. The difference between a mutual fund’s public offering price (POP) and its net asset value (NAV) is the:
#15. A breakpoint in a mutual fund is best described as:
#16. A letter of intent (LOI) for a mutual fund purchase is typically valid for:
#17. Which of the following is a feature of Class B mutual fund shares?
#18. An investor who wants intraday trading, low expenses, and tax efficiency is MOST likely to choose:
#19. Which of the following orders guarantees execution but not price?
#20. Which of the following orders guarantees price but not execution?
#21. In a bid-ask quote of 20.00–20.50, the spread is:
#22. Which of the following terms best describes a broker-dealer that trades from its own inventory?
#23. Regular-way settlement for corporate stocks in U.S. markets is:
#24. Regular-way settlement for listed stock options is:
#25. The ex-dividend date for a regular-way stock transaction is typically:
#26. Which of the following dates is set by the issuer’s board of directors?
#27. A stock is currently trading at $40. Which of the following call options is in the money?
#28. A stock is trading at $30. Which of the following put options is in the money?
#29. An investor buys 1 XYZ 50 call at 4. What is the investor’s maximum potential loss?
#30. An investor writes (sells) 1 ABC 60 call uncovered. What is the investor’s maximum potential loss?
#31. Buying a put option on a stock position the investor already owns is primarily used to:
#32. Which of the following is TRUE of a covered call?
#33. Which of the following types of risk is reduced by holding a portfolio of stocks from many different industries?
#34. A customer’s long-term goal is capital preservation with minimal volatility. Which investment is MOST suitable?
#35. Which of the following is a typical feature of preferred stock?
#36. Cumulative preferred stock is best described as:
#37. A corporation declares a 2-for-1 stock split. What happens to the number of shares and the price per share?
#38. Which of the following is TRUE about stock dividends?
#39. The par value of most corporate bonds is:
#40. Which of the following best describes a zero-coupon bond?
#41. Which of the following accounts is owned by two or more people and passes entirely to the surviving owner upon death of one party?
#42. In a tenants in common (TIC) account, upon the death of one owner, that person’s share:
#43. Which of the following is generally TRUE regarding custodial accounts under UGMA/UTMA?
#44. The primary purpose of suitability rules is to ensure that:
#45. Which of the following communications is considered correspondence under FINRA rules?
#46. Retail communication generally includes any written or electronic message distributed to:
#47. Under FINRA rules, gifts to associated persons of other firms are generally limited to a maximum value per year of:
#48. Private securities transactions by registered representatives generally require:
#49. Outside business activities of registered representatives generally must be:
#50. Selling away typically refers to:
#51. The USA PATRIOT Act requires broker-dealers to implement procedures to:
#52. A Currency Transaction Report (CTR) is generally required when a customer conducts cash transactions in excess of:
#53. Which of the following is a main objective of ERISA?
#54. A 403(b) plan is typically available to:
#55. Which of the following statements regarding Roth IRAs is TRUE?
#56. The Securities Exchange Act of 1934 primarily regulates:
#57. The Investment Company Act of 1940 regulates:
#58. The primary purpose of the Securities Investor Protection Corporation (SIPC) is to:
#59. Which of the following is a self-regulatory organization (SRO) for the municipal securities market?
#60. EMMA, the Electronic Municipal Market Access system, is primarily used to provide:
#61. Which of the following best describes a 529 prepaid tuition plan?
#62. A customer account statement from a broker-dealer must be sent at least:
#63. Which of the following documents confirms details such as price and number of shares after a trade is executed?
#64. Which of the following is TRUE regarding hypothecation in a margin account?
#65. Rehypothecation refers to:
#66. Which of the following is generally TRUE about money market mutual funds?
#67. Which of the following MOST accurately describes diversification?
#68. Which economic phase is typically characterized by rising GDP, falling unemployment, and increasing consumer spending?
#69. During a recession, which of the following is most likely to increase?
#70. Which of the following investments is MOST appropriate for a client seeking long-term growth and able to tolerate significant short-term volatility?
#71. Which of the following best describes a hedge fund?
#72. Which statement about penny stocks is TRUE?
#73. An investor’s time horizon is BEST described as:
#74. Which of the following is a leading economic indicator?
#75. Which of the following is generally considered the safest issuer of debt securities?
