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| Section | Objectives |
|---|---|
| Topic 1: Job Functions Overview | - Function 2: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile
|
1. Assuming that the information contained in a registration statement is complete and accurate, the
registration statement becomes effective:
A) only after the SEC specifically clears the issue in writing to the principal underwriter
B) 10 days after receipt by the SEC
C) 20 days after receipt by the SEC
D) 30 days after receipt by the SEC
2. Which of the following items is not deducted to determine a corporation's net income?
A) interest
B) taxes
C) dividends
D) all of the above
3. Municipal bond brokers generally conduct the following:
A) trade for their own account
B) trade for dealer banks
C) both A and B
D) trade for non-bank dealers
4. Bubba is a registered representative who wishes to buy shares of a new issue his firm is distributing.
Under FINRA Conduct Rules, Bubba may:
A) not do so for his own account, buy may purchase shares for his sister's account
B) do so if his allotment is insubstantial and not disproportionate to public orders
C) do so if he has a history of buying hot issues
D) not do so under any circumstance
5. A corporation makes a rights offering to raise $10 million of new capital by issuing one million shares of
common stock. If it already has six million shares outstanding at the time of the offering. What is the
subscription price per share?
A) $6
B) $10
C) $7
D) $4
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: C | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: B |
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