Contact for further consultation
Practice Test Series
65 Comprehensive
Questions (Frequently
Tested) with Verified
Answers Graded A+
1/
13
, Contact for further consultation
1. what is the equation for operating margin? Answer: net profit / revenue
2. what type of risk does beta calculate? Answer: systematic risk, risk of a single
security compared to the market as a whole
3. what type of risk is eliminated if you always hold a bond until
maturity? Answer: interest rate risk
4. can preferred stock ever be called back by a company? Answer: yes
5. do you have voting rights if you hold an ADR? Answer: no
6. what are some things that fundamental analysts look for? Answer: fiscal
policy, money supply, industry analysis, monetary policy, interest rates, and the economic
environment.
7. what type of risk does a zero coupon bond not have? Answer:
reinvestment risk
8. what should be associated with OTC markets? Answer: massive market, trades
government securities etc
9. does a corporation have to pay a production tax? Answer: no
10. what is an Alien Corporation? Answer: incorporated in a country other than the
United States
11. what is a Foreign Corporation? Answer: conducts business outside of the state
of its incorporation
12. what are examples of penalty free withdrawals from a traditional
IRA? Answer: medical bills, tuition expenses, first time home purchase, disability, beneficiary of
deceased who previously held IRA
13. when can a short sale take place? Answer: Only on an up-tick or zero-uptick
price movement
14. when you inherit a security what is your cost basis? Answer: when the
death occurs the fair value of the security is your cost basis, and it is always a long term gain
15. what is a way to combat the probate court process? Answer:
setting up a trust
16. to determine a fair price to charge as a commission what should
be consid- ered? Answer: the type of security, current market price and conditions, size of the
purchase, amount of time and expense involved, and the nature of the member's business
17. when people are getting old what should you estimate their
1/
13
Practice Test Series
65 Comprehensive
Questions (Frequently
Tested) with Verified
Answers Graded A+
1/
13
, Contact for further consultation
1. what is the equation for operating margin? Answer: net profit / revenue
2. what type of risk does beta calculate? Answer: systematic risk, risk of a single
security compared to the market as a whole
3. what type of risk is eliminated if you always hold a bond until
maturity? Answer: interest rate risk
4. can preferred stock ever be called back by a company? Answer: yes
5. do you have voting rights if you hold an ADR? Answer: no
6. what are some things that fundamental analysts look for? Answer: fiscal
policy, money supply, industry analysis, monetary policy, interest rates, and the economic
environment.
7. what type of risk does a zero coupon bond not have? Answer:
reinvestment risk
8. what should be associated with OTC markets? Answer: massive market, trades
government securities etc
9. does a corporation have to pay a production tax? Answer: no
10. what is an Alien Corporation? Answer: incorporated in a country other than the
United States
11. what is a Foreign Corporation? Answer: conducts business outside of the state
of its incorporation
12. what are examples of penalty free withdrawals from a traditional
IRA? Answer: medical bills, tuition expenses, first time home purchase, disability, beneficiary of
deceased who previously held IRA
13. when can a short sale take place? Answer: Only on an up-tick or zero-uptick
price movement
14. when you inherit a security what is your cost basis? Answer: when the
death occurs the fair value of the security is your cost basis, and it is always a long term gain
15. what is a way to combat the probate court process? Answer:
setting up a trust
16. to determine a fair price to charge as a commission what should
be consid- ered? Answer: the type of security, current market price and conditions, size of the
purchase, amount of time and expense involved, and the nature of the member's business
17. when people are getting old what should you estimate their
1/
13
