Series 7 Practice Exam 5

The largest sampling of stocks in the major market indices is found in the:

Under normal circumstances, the ex-dividend date for open-end investment company shares is:

Which of the following are eligible methods for acquiring a breakpoint when investing in shares of open-end investment companies?

I.    Lump sum

II.    LOI

III.  Right of accumulation

IV.  The exchange privilege

Which of the following is NOT a type of economic indicator?

FINRA’s rules pertaining to communications with the public define retail communications as which of the following?

NASDAQ Market Makers are required to report each trade within how many seconds of execution?

What is the maximum potential loss when holding a long straddle position?

Which of these calls would have the largest premium?

When a custodianship account under UGMA purchases securities,

Which of the following securities instruments will most likely decline the least in market price when interest rates rise?

AAA is trading at $55. Mr. Jones buys a May 60 call at $1 and sells a May 50 call at $7. What options strategy has he implemented?

This type of underwriting contract is safest for the issuer, but also the most expensive.

Ms. Stein sees that CBA is trading at $53. She buys a December 50 put for $150 and she writes a December 55 put for $400. The stock closes at $59 on the expiration date of the options. What is her profit or loss?

What percentage of its income is a REIT required to distribute to its equity investors?

In the issuance of new stock offerings, a free-writing prospectus is generally deemed to be a document which FINRA requires to be filed with the SRO if:

Emma sells 500 shares of SJM short at a price of $55. What is the credit balance in her margin account as the result of this transaction?

A market maker is quoting ABC common as follows:

25.50 – 25.75  15 x 10

The inside market at the time is 25.55 – 25.70. If the market maker receives and accepts a customer buy order for 100 shares, the price to be used as basis for the mark-up will be:

When a registered representative engages in the sale of securities outside the scope of his or her member firm without obtaining express authorization from the member, this is referred to by FINRA as:

Your client is selling restricted shares of a stock that is quoted on NASDAQ. One of the conditions of their Rule 144 sale is that the amount of stock they sell in a 3-month period cannot exceed the greater of 1% of the outstanding shares of the same class being sold or:

Passive market making is a term associated with Regulation M of the SEA of 1934 and stipulates that broker-dealers participating in an APO who are also market makers in that issuer’s outstanding stock must:

Holders of this type of preferred stock have the opportunity to receive additional dividends if the company attains certain predetermined financial goals.

A municipality issues 30,000 bonds at an offering price of $1,000. The syndicate manager's fee is $1.00 per bond. The selling concession is $4.50 per bond and the total takedown is $7.75 per bond. How much will the issuer receive per bond?

When a corporation activates the call provision on a bond which is both callable and convertible, the most likely outcome would be:

Non-recourse loans when used in the financing of the operations of direct participation programs:

The best measure of a corporation’s ability to meet its ongoing obligations over the coming 12 months is: