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.
Which of the following responses describes an advantage of index funds?
Lower management fees due to passive management of the fund
.
Which of the following comparisons best describes the essential difference between a
primary distribution and a secondary distribution?
A primary distribution involves a sale of newly issued shares by the issuer while a
secondary distribution involves the sale of already issued and outstanding shares.
.
The computation of dollar prices and accrued interest on municipal bonds is normally on
what calendar basis?
30/360
.
Direct participation programs (DPPs) provide:
exposure to non-correlated assets
.
Call protection is most valuable to a bond owner when bond prices are generally:
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rising
.
Which of the following represents the effect of a stock split?
The price per share of common stock decreases
.
Stability in the value of a debt portfolio is greatest when:
maturities of the debt securities are short.
.
Which of the following actions is required of a broker-dealer's anti-money laundering
(AML) program?
Designating an AML compliance officer
.
Which of the following actions violates FINRA rules regarding selling away?
Engaging in private securities transactions without written prior consent of the
employing BD
.
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Company ABC announces a 20% stock dividend for its common shareholders. If a
customer holds 1,000 shares at $50.00, what is the new price and number of shares
following the payment of the stock dividend?
1,200 shares at $41.67
.
.
Roth 401(k) and Roth individual retirement account (IRA) plans share which of the
following features?
Qualified distributions are excluded from federal income tax
.
An associated person who is not a registered representative is permitted to engage in
which of the following activities?
Provide account opening forms to a new customer
.
The last transaction in XYZ 5.50s 2030 was at 102. This bond is selling at:
a premium
.
A registered representative (RR) who wants to place a mutual fund advertisement must
obtain written approval from which of the following parties?
A registered principal of the RR's firm
.
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Under normal circumstances, a customer's letter of intent on a mutual fund purchase is
valid for what maximum period?
13 months
.
To offer its shareholders a privilege to obtain its shares at a fixed price, which of the
following products does a corporation issue?
Rights
.
The call provision of a bond stipulates which of the following factors?
Call date and call price
.
A decline in the gross domestic product (GDP) must last for at least how many quarters
to be considered a recession?
2 quarters
.
The regular way settlement on Treasury bonds is:
next business day
.