STOCKBROKER Test 1

Question 1

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

Accepted Answer

Annually

Answer

Explanation:
Margin customers must get the Margin Disclosure Statement at least once a year.

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

Explanation:
Research analysts must first register as general securities representatives and then pass a research analyst qualification examination.

Question 3

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

Accepted Answer

+ Credit - Short Market Value = Equity

Answer

Explanation:
Equity in a Short Margin Account is calculated as follows:
Equity = Credit Balance - Short Market Value

Question 4

Which of the following types of investors are considered institutional?

Accepted Answer

All of the above

Answer

Explanation:
Institutional investors include:
Governmental entities.
Employee benefit plans that meet the requirements of Section 403(b) or Section 457 of the Internal Revenue Code and have at least 100 participants.
Qualified plans that meet the requirements of Section 3(a)(12)(C) of the Exchange Act and have at least 100 participants.

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

Explanation:
Optional rationale Any sales content that reaches a public audience through a mass medium, such as websites, newspapers, periodicals, magazines, radio, television, telephone recordings, motion pictures, billboards, signs, or sales communications to the public, is described as advertising.
Correspondence is a letter sent to a customer, whereas sales literature is characterized as an options worksheet. The Options Disclosure Document (ODD) is the mandatory offering information that must be provided to customers when they open an options account and any options communication that makes a recommendation, indicates prior performance, or makes a prognosis.

Stock Broker Practice Test

Stock Broker Practice Test

STOCKBROKER Test 1