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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions | 7% | - Trade execution and settlement
|
| Topic 2: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Investment products
|
| Topic 3: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 9% | - Customer acquisition and prospecting
|
| Topic 4: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives | 11% | - Customer accounts and documentation
|
1. The Bubba Corporation has 900,000 of common outstanding and holds 100,000 shares as treasury stock.
At the end of the third quarter $450,000 is distributed as a dividend on the common. How much is the
dividend per share?
A) $2.00
B) $0.50
C) $0.45
D) $2.22
2. A treasury obligation having no fixed rate of interest with a thirty day maturity due April 22 is most likely a:
A) Series H bond
B) treasury note
C) Series EE bond
D) tax anticipation bill
3. A call option is in the money when the market value of the underlying stock is:
A) the same as the strike price of the option
B) higher than the strike price plus the premium
C) lower than the strike price of the option
D) higher than the strike price of the option
4. Distribution from an IRA can begin at age 591/2 and must begin by age:
A) 68
B) whenever the individual is retired
C) 701/2
D) 65
5. The definition of debentures is:
A) a loan secured by real estate
B) securities backed by the general credit of the issuers but no specific collateral
C) a worthless security
D) collateralized securities
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: D | Question # 4 Answer: C | Question # 5 Answer: B |
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