20 free sample questions560 in the full practice test
Approval for a registered investment company to change is investment objective from income to growth is required from which of the following?
Correct answer: A
A--Explanation:
a majority of the shareholders. Any factors that materially affect the interests of shareholders must be approved by a majority vote of the shareholders.
According to FINRA Conduct Rules, a party judged guilty of a rule infraction by the District Business Conduct Committee may then appeal to:
Correct answer: C
C--Explanation:
the FINRA Board of Governors. The first appeal is to the Board of Governors, then to the SEC, and then to the federal courts.
A tax-free rollover of assets between qualified retirement plans for the benefit of a specific individual is permitted so long as it is accomplished within:
Correct answer: D
D--Explanation:
60 days. ERISA permits 60 days for rollovers.
Municipal syndicate allocation procedures are described in which of the following?
Correct answer: D
D--Explanation:
syndicate account letter. This letter is sent by the manager of a competitive bid syndicate to the other members. The priority and other procedures, including allocation amounts, are specified in the letter.
Members signify acceptance by signing the letter and returning it to the manger.
Which of the following have a stated interest rate on the face of the certificates?
Correct answer: C
C--Explanation:
both B and C. Treasury notes and treasury bonds have stated interest rates. Treasury bills are always sold at a discount to the face amount payable at maturity.
Municipal bond brokers generally conduct the following:
Correct answer: A
A
All sales literature and advertising relating to investment company shares prepared by members of FINRA must be filed for review with which of the following?
Correct answer: B
B--Explanation:
FINRA. Sales literature regarding investment company shares must be filed with FINRA within three days after the first use.
Bubba Securities, Inc. offers 3,000,000 shares of Top Notch Manufacturing Corporation common stock at $27 per share. The next day an advertisement appears in the Wall Street Journal announcing the offering and listing the names of some of the underwriting firms.
This ad is commonly referred to as a:
Correct answer: C
C--Explanation:
tombstone ad. Tombstone ads are used to announce new issues. They do not offer to buy or sell securities. They are informational only.
Bubba plans to borrow some money and pledge securities as collateral.
Which of the following can he not use as collateral?
Correct answer: C
C--Explanation:
Series EE bonds. Because Series EE bonds are not negotiable, they have no collateral value. They cannot be sold back to the US government.
An issuer is most likely to request an investment letter from the purchaser in connection with which of the offerings?
Correct answer: B
B--Explanation:
a private placement. Normally, private placements are conducted with an investment letter.
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