STOCKBROKER Test 1

Question 1

How often must existing margin account holders get the Margin Disclosure Statement?

Accepted Answer

Annually

Answer

Semiannually

Answer

Monthly

Answer

Quarterly

Question 2

Which of the following statements is true about people who will work as research analysts?

Accepted Answer

They must be registered as general securities representatives and pass a research analyst qualification examination.

Answer

They must pass a qualifying examination for research analysts only.

Answer

They must be registered as a general securities representative only.

Answer

None of the above

Question 3

In a Short Margin Account, what is the equity formula?

Accepted Answer

+ Credit - Short Market Value = Equity

Answer

+ Credit + Short Market Value = Equity

Answer

- Credit - Short Market Value = Equity

Answer

- Credit + Short Market Value = Equity

Question 4

Which of the following types of investors are considered institutional?

Accepted Answer

All of the above

Answer

An employee benefit plan that meets the requirement of Section 403(b) or Section 457 of the Internal Revenue Code and has at least 100 participants

Answer

A qualified plan as defined in Section 3(a)(12)(C) of the Exchange Act and that has at least 100 participants

Answer

A governmental entity

Question 5

The Securities Act of 1933 is primarily concerned with the registration of:Which of the following is defined as "advertising" in the Securities Act of 1933?

Accepted Answer

Options website

Answer

Letters of an “individual” nature sent to customers

Answer

Options disclosure document

Answer

Standard option worksheet

Question 6

What are the three requirements for general telemarketing?

Accepted Answer

Time of Day Restriction, National Do-Not-Call List, and Firm-Specific Do Not Call List

Answer

Time of Day Restriction, Firm-Specific Do-Not-Call List, and State Do-Not Call List

Answer

Time of Day Restriction, State Do-Not-Call List, and National Do-Not-Call List

Answer

State Do-Not-Call List, National Do-Not-Call List, and Firm-Specific Do-Not-Call List

Question 7

Except for the following, all of the following statements about the municipal financial advisor in competitive bid underwritings are true:

Accepted Answer

Financial advisor will be the underwriter of the offering

Answer

Issuer pays the financial advisor

Answer

Financial advisor helps the issuer structure a new bond offering

Answer

Financial advisor is usually a municipal broker-dealer

Question 8

If a registered principal or registered representative's registration has been cancelled or terminated for a period of ___________ or more, he or she must repeat the qualifying exam.

Accepted Answer

2 years

Answer

3 years

Answer

1 year

Answer

5 years

Question 9

A consumer who owns 100 shares of stock may be protected by:

Accepted Answer

Buying a put

Answer

Selling a put

Answer

Buying a car

Answer

Buying another 100 shares of the stock