HS 328 Practice Exam 1 Questions With
Complete Solutions
Which of the following advisors must register with the U.S. Securities
| | | | | | | | | | |
and Exchange Commission (SEC)?
| | |
A)
An advisor who sells insurance products
| | | | |
B)
An advisor who is registered with his or her state securities regulator
| | | | | | | | | | |
C)
An advisor who manages over $100 million in assets
| | | | | | | |
D)
An advisor who declines to be regulated by FINRA
| | | | | | | |
C)
An advisor who manages over $100 million in assets
| | | | | | | |
Harold would like to purchase shares of a large, established company.
| | | | | | | | | | |
He will most likely make his purchase
| | | | | |
A)
in the primary market.
| | |
,B)
from an underwriter.
| |
C)
in the secondary market.
| | |
D)
from the issuing corporation.
| | |
C)
in the secondary market.
| | |
A stock market participant that buys shares of stock in a secondary
| | | | | | | | | | | |
market and holds shares as part of its inventory is most likely a(n)
| | | | | | | | | | | |
A)
stock exchange.
|
B)
independent advisor. |
C)
broker-dealer.
D)
self-regulatory organization. |
C)
,broker-dealer.
All of the following is (are) among the responsibilities of FINRA EXCEPT
| | | | | | | | | | |
A)
educating investors. |
B)
fostering market transparency.
| |
C)
writing and enforcing rules governing the activities of all registered
| | | | | | | | | |
broker-dealer firms and registered brokers in the U.S.
| | | | | | |
D)
writing and enforcing rules governing the activities of all registered
| | | | | | | | | |
investment advisors. |
D)
writing and enforcing rules governing the activities of all registered
| | | | | | | | | |
investment advisors. |
Which of the following would most likely be classified as a primary
| | | | | | | | | | | |
market transaction?
|
A)
, A mortgage-backed security (MBS) purchased from an institution that
| | | | | | | | |
originates the mortgage loans | | |
B)
Equity shares purchased on the floor of the New York Stock Exchange
| | | | | | | | | | |
C)
A corporate bond purchased from an endowment fund that is
| | | | | | | | | |
liquidating
D)
Shares of preferred stock that are purchased from a dealer
| | | | | | | | |
A)
A mortgage-backed security (MBS) purchased from an institution that
| | | | | | | | |
originates the mortgage loans | | |
One of your clients wants to build a portfolio characterized by high
| | | | | | | | | | | |
liquidity and very low risk. This client does not mind if the portfolio's
| | | | | | | | | | | | |
returns are low. Given these specifications, you might recommend a
| | | | | | | | | |
portfolio consisting primarily of which asset class?
| | | | | |
A)
Money market instruments
| |
B)
Municipal bonds |
C)
Complete Solutions
Which of the following advisors must register with the U.S. Securities
| | | | | | | | | | |
and Exchange Commission (SEC)?
| | |
A)
An advisor who sells insurance products
| | | | |
B)
An advisor who is registered with his or her state securities regulator
| | | | | | | | | | |
C)
An advisor who manages over $100 million in assets
| | | | | | | |
D)
An advisor who declines to be regulated by FINRA
| | | | | | | |
C)
An advisor who manages over $100 million in assets
| | | | | | | |
Harold would like to purchase shares of a large, established company.
| | | | | | | | | | |
He will most likely make his purchase
| | | | | |
A)
in the primary market.
| | |
,B)
from an underwriter.
| |
C)
in the secondary market.
| | |
D)
from the issuing corporation.
| | |
C)
in the secondary market.
| | |
A stock market participant that buys shares of stock in a secondary
| | | | | | | | | | | |
market and holds shares as part of its inventory is most likely a(n)
| | | | | | | | | | | |
A)
stock exchange.
|
B)
independent advisor. |
C)
broker-dealer.
D)
self-regulatory organization. |
C)
,broker-dealer.
All of the following is (are) among the responsibilities of FINRA EXCEPT
| | | | | | | | | | |
A)
educating investors. |
B)
fostering market transparency.
| |
C)
writing and enforcing rules governing the activities of all registered
| | | | | | | | | |
broker-dealer firms and registered brokers in the U.S.
| | | | | | |
D)
writing and enforcing rules governing the activities of all registered
| | | | | | | | | |
investment advisors. |
D)
writing and enforcing rules governing the activities of all registered
| | | | | | | | | |
investment advisors. |
Which of the following would most likely be classified as a primary
| | | | | | | | | | | |
market transaction?
|
A)
, A mortgage-backed security (MBS) purchased from an institution that
| | | | | | | | |
originates the mortgage loans | | |
B)
Equity shares purchased on the floor of the New York Stock Exchange
| | | | | | | | | | |
C)
A corporate bond purchased from an endowment fund that is
| | | | | | | | | |
liquidating
D)
Shares of preferred stock that are purchased from a dealer
| | | | | | | | |
A)
A mortgage-backed security (MBS) purchased from an institution that
| | | | | | | | |
originates the mortgage loans | | |
One of your clients wants to build a portfolio characterized by high
| | | | | | | | | | | |
liquidity and very low risk. This client does not mind if the portfolio's
| | | | | | | | | | | | |
returns are low. Given these specifications, you might recommend a
| | | | | | | | | |
portfolio consisting primarily of which asset class?
| | | | | |
A)
Money market instruments
| |
B)
Municipal bonds |
C)
