MASTERY EXAM #1 - Pass Perfect Correctly Solved Questions And
Answer 2026 Update!!!
1. In a corporate liquidation, the last to get paid is: D. Common stockholders
A. Unpaid wages and taxes
B. Bondholders
C. Preferred stockholders
D. Common stockholders
2. All of the following are types of oil and gas direct A. Balanced
participation programs EXCEPT:
A. Balanced
B. Income
C. Exploratory
D. Developmental
3. The term "publicly traded fund" is the common name B. closed end manage-
for a(n): ment company
A. open end management company
B. closed end management company
C. fixed unit investment trust
D. participating unit investment trust
4. When comparing a mutual fund to a hedge fund, D. Hedge funds are liquid
which statement is FALSE?
A. Hedge funds are less regulated
B. Hedge funds are more risky
C. Hedge funds are only available to qualified pur-
chasers
, MASTERY EXAM #1 - Pass Perfect Correctly Solved Questions And
Answer 2026 Update!!!
D. Hedge funds are liquid
5. All of the following statements are true regarding the D. ADRs are traded on
trading of ADRs EXCEPT: the Chicago Board Op-
tions Exchange
A. ADRs are traded on the New York Stock Exchange
B. ADRs are traded on the NASDAQ Stock Market
C. ADRs are traded on the American Stock Exchange
D. ADRs are traded on the Chicago Board Options
Exchange
6. ABC 8% $100 par preferred is trading at $105 in the B. 7.6%
market. The current yield is:
ANNUAL INCOME/MAR-
A. 6.6% KET PRICE
B. 7.6% = CURRENT YIELD
C. 8.6%
D. 10.6% $8/$105= 7.6%
7. An ADR has been issued where each ADR equals 600 B. 10
ordinary shares of the foreign issuer. If a client wished
to buy enough ADRs to cover 6,000 ordinary shares, Since each ADR equals
how many ADRs must be purchased? 600 ordinary shares, then
10 ADRs equals 6,000 or-
A. 1 dinary shares.
B. 10
C. 100
D. 1,000
, MASTERY EXAM #1 - Pass Perfect Correctly Solved Questions And
Answer 2026 Update!!!
8. Under IRS rules, if a customer selling shares of stock B. Settlement date
wishes to use specific identification instead of FIFO for
cost basis reporting, the broker-dealer effecting the
trade must be notified of this no later than:
A. Trade date
B. Settlement date
C. December 31st of that year
D. April 15th of the following year
9. All of the following terms apply to mutual fund shares B. tradeable
EXCEPT:
A. continuously issued
B. tradeable
C. Redeemable
D. non-negotiable
10. Which of the following statements are TRUE about tax D. II and IV
shelters that invest in raw land?
I. Raw land is depreciable
II. Raw land is not depreciable
III. The main reason to invest in raw land is for the
depletion deduction
IV. The main reason to invest in raw land is for the
capital gains potential
A. I and III
B. I and IV
, C. II and III
D. II and IV
11. All of the following features are common to both pre- D. fixed maturity date
ferred stock and bonds EXCEPT:
A. fixed rate
B. periodic payments
C. can be callable
D. fixed maturity date
12. Which statements are TRUE regarding Treasury debt A. I and III
instruments?
I. T-Notes are sold by competitive bidding at auction
conducted by the Federal Reserve
II. T-Notes are sold by negotiated offering
III. T-Notes are issued in book entry form with no
physical certificates issued
IV. T-Notes are issued in bearer form
A. I and III
B. I and IV
C. II and III
D. II and IV
13. Which of the following statements are TRUE when C. II, III, IV
comparing bonds and preferred stock?
I. Payments to bondholders are subject to approval of
Answer 2026 Update!!!
1. In a corporate liquidation, the last to get paid is: D. Common stockholders
A. Unpaid wages and taxes
B. Bondholders
C. Preferred stockholders
D. Common stockholders
2. All of the following are types of oil and gas direct A. Balanced
participation programs EXCEPT:
A. Balanced
B. Income
C. Exploratory
D. Developmental
3. The term "publicly traded fund" is the common name B. closed end manage-
for a(n): ment company
A. open end management company
B. closed end management company
C. fixed unit investment trust
D. participating unit investment trust
4. When comparing a mutual fund to a hedge fund, D. Hedge funds are liquid
which statement is FALSE?
A. Hedge funds are less regulated
B. Hedge funds are more risky
C. Hedge funds are only available to qualified pur-
chasers
, MASTERY EXAM #1 - Pass Perfect Correctly Solved Questions And
Answer 2026 Update!!!
D. Hedge funds are liquid
5. All of the following statements are true regarding the D. ADRs are traded on
trading of ADRs EXCEPT: the Chicago Board Op-
tions Exchange
A. ADRs are traded on the New York Stock Exchange
B. ADRs are traded on the NASDAQ Stock Market
C. ADRs are traded on the American Stock Exchange
D. ADRs are traded on the Chicago Board Options
Exchange
6. ABC 8% $100 par preferred is trading at $105 in the B. 7.6%
market. The current yield is:
ANNUAL INCOME/MAR-
A. 6.6% KET PRICE
B. 7.6% = CURRENT YIELD
C. 8.6%
D. 10.6% $8/$105= 7.6%
7. An ADR has been issued where each ADR equals 600 B. 10
ordinary shares of the foreign issuer. If a client wished
to buy enough ADRs to cover 6,000 ordinary shares, Since each ADR equals
how many ADRs must be purchased? 600 ordinary shares, then
10 ADRs equals 6,000 or-
A. 1 dinary shares.
B. 10
C. 100
D. 1,000
, MASTERY EXAM #1 - Pass Perfect Correctly Solved Questions And
Answer 2026 Update!!!
8. Under IRS rules, if a customer selling shares of stock B. Settlement date
wishes to use specific identification instead of FIFO for
cost basis reporting, the broker-dealer effecting the
trade must be notified of this no later than:
A. Trade date
B. Settlement date
C. December 31st of that year
D. April 15th of the following year
9. All of the following terms apply to mutual fund shares B. tradeable
EXCEPT:
A. continuously issued
B. tradeable
C. Redeemable
D. non-negotiable
10. Which of the following statements are TRUE about tax D. II and IV
shelters that invest in raw land?
I. Raw land is depreciable
II. Raw land is not depreciable
III. The main reason to invest in raw land is for the
depletion deduction
IV. The main reason to invest in raw land is for the
capital gains potential
A. I and III
B. I and IV
, C. II and III
D. II and IV
11. All of the following features are common to both pre- D. fixed maturity date
ferred stock and bonds EXCEPT:
A. fixed rate
B. periodic payments
C. can be callable
D. fixed maturity date
12. Which statements are TRUE regarding Treasury debt A. I and III
instruments?
I. T-Notes are sold by competitive bidding at auction
conducted by the Federal Reserve
II. T-Notes are sold by negotiated offering
III. T-Notes are issued in book entry form with no
physical certificates issued
IV. T-Notes are issued in bearer form
A. I and III
B. I and IV
C. II and III
D. II and IV
13. Which of the following statements are TRUE when C. II, III, IV
comparing bonds and preferred stock?
I. Payments to bondholders are subject to approval of
