SIE

Which of the following securities is marginable?

• The purchase of listed stock in a custodial account

• Open-end funds held for 15 days

• The purchase of NYSE-listed closed-end fund shares

• The purchase of option contracts

The city of Philadelphia issued $100 million in municipal debt 3 years ago. The bonds were issued with a 20 year maturity and carry a 5% coupon. It is backed by city taxes and the full faith and credit of the city. These bonds are referred to as

• General Obligation Bonds

• Revenue Bonds

• Variable Demand Notes

• Special tax bonds

The major difference between an open-end management company & a closed-end company is that the open-end company....

• Has a share price determined by supply and demand

• Sells shares through a continuous primary offering

• Has a fixed number of shares outstanding

• Offers shares that are not redeemable by the issuer

Any sale of securities outside an associated person's or the employing member firm's regular business is recognized as

• An outside business activity

• A non-issuer transaction

• An unsolicited transaction

• A private securities transaction

Which of the following terms best describes a corporate debt instrument secured by a pledge by the issuer of property that consists of stocks and bonds of other corporations?

• Unit investment trust

• Collateral trust certificate

• Debenture

• Equipment trust certificate

For investors, which represents total return?

• An increase in the value of shares owned

• Dividends declared by the board of directors (BOD)

• Dividends declared by the board of directors and received

• An increase in the value of shares owned and any dividends received

The penny stock cold-calling rule defines an established customer as one who has

• A purchased or sold stocks and bonds within the past 6 months

• Made a penny stock purchase or sale within the last year

• Purchased at least 1000 shares of common stock valued at $5 in the past 270 days

• Made a deposit of cash of securities in a brokerage account within the past calendar year

Regarding Stockholder rights, each of the following is True, EXCEPT,

• Stockholders can participate directly in the management of the company

• Stockholders have the right to examine the minutes of any meetings held by the board of directors

• Stockholders have the right to receive audited financial statements annually

• Stockholders can vote for those who will serve on the board of directors

A registered representative is introducing options terminology to a client. OF the following, which would be the accurate explanation regarding owners and writers of listed equity call options?

• The owner of a call has the right to exercise the contract, and the writer would then have the right to buy shares from the owner at the strike price

• The owner of a call is obligated to exercise the contract to sell shares to the writer, who may choose to purchase them or not.

• The owner of a call is obligated to exercise the contract, ant eh writer would then be assigned the obligation to buy shares from the owner at the strike price.

• The owner of a call has the right to exercise the contract, and the writer would then be assigned and obligated to sell shares to the owner at the strike price.

A breakpoint sale is define as

• The sale of investment company shares in dollar amounts just below the point at which the sales charge is reduced on quantity transactions to incur the higher sales charge

• The payment of compensation to a registered representative after he ceases to be employed by a member

• The sale of investment company shares in anticipation of a distribution soon to be paid.

• The sale of shares where the client pays the smallest sales