Strategies Review of Key Quizzes
Quiz_________________?
A broker-dealer is permitted to accept payment for a new issue from a new customer when
the -
Answer✅
Registration is effective
Quiz_________________?
A company announces a tender offer to its shareholders with the intent to buy a maximum
of 1 million shares of its outstanding stock at $10 per share and sets no minimum number of
shares to be purchased. An investor wants to participate in this offer and tenders his 1,000
share position. At the close of the offer period, only 900,000 shares have been tendered.
How many, if any, of the investors shares will the company purchase -
Answer✅
1,000
Quiz_________________?
1
, A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares
of ABC stock for $35 per share. The customer will break even when the stock is selling at
what price per share at expiration -
Answer✅
$38
Quiz_________________?
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her an account statement -
Answer✅
Quarterly
Quiz_________________?
A customer is an officer of a company that is involved in some significant changes. All of the
following items are examples of corporate affairs that could be considered inside
information is the customer shares them with his registered representative except: -
Answer✅
Declared stock dividends
Quiz_________________?
A decline is the gross domestic product (GDP) must last for at least how many quarters to
be considered a recession -
Answer✅
2
Quiz_________________?
2
, A firm is a participant is a public offering. To sell a substantial amount of the securities to its
customers, the firms agrees to repurchase the shares at no less than the original sales price.
Such agreements are: -
Answer✅
prohibited as fraudulent and manipulative
Quiz_________________?
A married couple who earned income that exceeded $300,000 in each of the prior two
years and reasonably expects the same for the current year is: -
Answer✅
an accredited investor
Quiz_________________?
A member of a stock exchange responsible for providing liquidity is a security by being
willing to buy and sell at all times is known as: -
Answer✅
A Market Maker
Quiz_________________?
A registered representative (RR) wants to participate in a private securities transaction.
Which of the following actions must the RR take -
Answer✅
Send written notice to his supervisor outlining the activity and compensation structure
Quiz_________________?
3
Quiz_________________?
A broker-dealer is permitted to accept payment for a new issue from a new customer when
the -
Answer✅
Registration is effective
Quiz_________________?
A company announces a tender offer to its shareholders with the intent to buy a maximum
of 1 million shares of its outstanding stock at $10 per share and sets no minimum number of
shares to be purchased. An investor wants to participate in this offer and tenders his 1,000
share position. At the close of the offer period, only 900,000 shares have been tendered.
How many, if any, of the investors shares will the company purchase -
Answer✅
1,000
Quiz_________________?
1
, A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys 100 shares
of ABC stock for $35 per share. The customer will break even when the stock is selling at
what price per share at expiration -
Answer✅
$38
Quiz_________________?
A customer has a cash balance in her account together with long positions in several
securities. She has made no securities transactions in the account during the past 18
months. How often must the firm send her an account statement -
Answer✅
Quarterly
Quiz_________________?
A customer is an officer of a company that is involved in some significant changes. All of the
following items are examples of corporate affairs that could be considered inside
information is the customer shares them with his registered representative except: -
Answer✅
Declared stock dividends
Quiz_________________?
A decline is the gross domestic product (GDP) must last for at least how many quarters to
be considered a recession -
Answer✅
2
Quiz_________________?
2
, A firm is a participant is a public offering. To sell a substantial amount of the securities to its
customers, the firms agrees to repurchase the shares at no less than the original sales price.
Such agreements are: -
Answer✅
prohibited as fraudulent and manipulative
Quiz_________________?
A married couple who earned income that exceeded $300,000 in each of the prior two
years and reasonably expects the same for the current year is: -
Answer✅
an accredited investor
Quiz_________________?
A member of a stock exchange responsible for providing liquidity is a security by being
willing to buy and sell at all times is known as: -
Answer✅
A Market Maker
Quiz_________________?
A registered representative (RR) wants to participate in a private securities transaction.
Which of the following actions must the RR take -
Answer✅
Send written notice to his supervisor outlining the activity and compensation structure
Quiz_________________?
3
