Cerrar
SIE
Who charges a commission?
Your customer is extremely concerned about preserving the money she has saved; an appropriate investment for her would be
According to FINRA Rule 2210, coies of all retail communication must be kept by the broker dealet for a minimum of how long?
If a client wisshes to open an account for a minor whereby he, the donor, retains ownership of the account he would most likely opena :
A broker-dealer's public website is
Which of the following has unlimited risk?
As it relates to money laundering, which of the following is the first step in the process?
According to the uniform practice code, cash transactions settle:
For an investor who wants tax benefits, you should recommend
Which of the following is an order to buy that allows the floor broker to exercise judgment as to the price?
A no-load mutual fund may charge a 12b-1 fee that is:
The public offering price for a mutual fund as quoted in the financial press reflects
Standard VIX options measure the volatility of which of the following?
Which of the following are true regarding dollar cost averaging?
All of the following are not false except:
Which of the following is true about a put buyer?
A fraudulent practice used to entice buyers as a result of new activity in the security is a violation known as
A mutual fund may send out capital gains distrubutions?
The customer make a new purchase of 100 shares of Abra Co. at $90 per share on an IPO. IF THE frb MARGIN REQUIREMENT IS 50%, customer must deposit
A. 4,500 B. 9,000 C. 5,500 D.4,000
The dividend on an ADR is paid in
If your customer is concerned about tax preference items for AMT, you would least likely recommend
You have the following positions in your margin account: Long 500 ABC at 27, Long 1500 XYZ at 42, Long 250 MCX at 80.
you have a debit balance of $28,200 what is your minimum maintenance?
A fixed annuity guarantees all of the following except
Your customer has an open order to buy 1000 ABC at $42. AABC goes ex-dividend for 18 cents per share. Your customer's order will now be; A. open order to buy 1000 ABC at 41.82 B. buy at 42.18 C.buy at 42, or D. canceled
Once a company decides to raise long-term capital to meet its needs, it will:
Which of the following is true regarding american depository receipts?
Which of the following are true regarding nonqualified plans?
Which of the following projects are least likely to be financed by a GO bond?
I. Public golf course II. Airport runway expansion III. County courthouse IV. Public schools
XYZ mining Co. is considering the purchase of a large piece of mining equipment to modernize its facility. It is anticipated the new equipment will increase productivity. The purchase of the equipment would make sense if the net present value was
A preferred stock that can be redeemed by the issuing corporation is called a:
Which of the options would provide the highest monthly payout on an immediate annuity? A. Straight Life B. life with a 20 year period certain. C. Lump Sum D. Life with 10 year certain
As it relates to a member firm conducting business with the public, all of the following are violations except:
An investor buys 100 shares of XYZ 7% convertible preferred stock, which is convertible into XYZ common at $20 per share. How many common shares can he receive upon conversion?
Preferred stock is
Which of the following is most suitable for a customer who is looking for growth potential with a minimum guaranteed rate of return?
A. Balanced fund B. A variable annuity C. A money market fund D. A combination annuity
A long established mutual fund co. wants to place new ads in the financial papers to try to attract new investors. Which of the following is true?
treasury stock has been issued and repurchased by a corporation for which of the following reasons?
Which type of preferred stock is likely to have the lowest stated dividend rate?
What is not a feature of preferred stock?
As per FINRA rule 2210 electronic communications with the public:
Which of the following statements are true regarding the act of 1933?
I. regulates the new issues. II. It regulates the primary market III. it regulates trades between issuers and the public. IV. it regulates investor-to-investor trades.
A mutual fund has a bid of $11 and an ask of $11.40. The mutual fund has sent out a dividend distribution of 75 cents and a capital gain distribution of 90 cents over the last 12 months. What is the mutual funds current yield?
A. 6.57% B. 6.8% C. 15% D. 14.5%
opening customer accounts
New Account information for all new accounts
*Full name and address
*home, work phone #'s
*SS # or tax ID #
*Employer, occupation, & employer's address
*Investment objective, income, net worth
*Also, a good thing to get is their risk profile
Opening customer accounts cont...
*No customer signature is required to open a a cash account
*Customer information must be verified every 36 months.
* Rep must update financial information on the customer's account within in 30 days of the information change
Holding customer securities
* Transfer and ship
*Safe Keeping (the broker-dealer registers the securities in their name, but the broker-dealer keeps the securities for a fee)
*Street name (most popular) meaning the name of the broker-dealer; this is called an ease of transfer. The client would endorse the back of the stock like a car title or power of substitution, which would make it easily transferable.
*DVP/RVP (delivery versus payment/receipt versus payment): 35 days to settle this transaction; balances on the accounts tend to be zero.
*Direct registration system/DRS allows clients to digitally hold securities in their own name.
Transfer on Death
*Transfer on death/pay on death
TOD/POD
*Named beneficiary and the assets pass on to that beneficiary and avoid probate. Beneficiary is not provided or able to have any information on the account.
Types of customers accounts
*Corporate accounts: Broker/dealer must receive a corporate resolution
*Trust accounts: Rep required to have a copy of the trust agreement, informs who is the trustee and what powers it has to act in the account
*Partnership accounts: Rep needs a copy of the partnership agreement, general partnership (Person who manages and has the power to act on the accoun, May only enter orders on the account), law partnership, limited partnership (provides the capital for the business)
Types of customers accounts
*Third-party accounts
*Fiduciary accounts
*UGMA/UTMA Accounts [Uniform gift to minors act or account] Uniform Transfer to minors act or account] It's in the custodian's name, the state, the minor's name, and UGMA. SS# is what the account is under. The account must transfer to the minor at the age of majority. Assets become property of the minor's estate if the minor passes away. The custodian may choose the age when the account transfers to the minor. 25 years of age is the maximum age of majority
Types of customer accounts Cont...
*Option accounts
*Option agreement: a customer has 15 days to sign and return an option agreement. If the agreement is not turned in on time, they may not open up any new options positions. Hypothecation agreement. Loan consent agreement to loan out stock to sell short.
*Margin accounts
Hypothecates its collateral
Financial exploitation of seniors
*Anyone over 65: If th Rep thinks something is fraudulent, the rep may hold the funds for 15 days while they investigate for elder abuse. if rep finds cause for fraud, the rep may hold funds for another 10 days while rep contacts the authorities.
*Trusted contact
On the test you will pick the answer that executes the customer's order and mark unsolicited or contacts your broker-dealer principal.
Able accounts
*Housing expenses (including mortgage, tax, rent, insurance, and utility payments).
*Transportation
*assistive technology
*education
*job training
Customer may only have one able account at a time. May take money out of the account for anticipated expenditure or to reimburse for payments made. Any assets that remain in the able account after the customer passes away will go towards the estate to repay any supplemental benefits they received over their lifetime.
