Series 24 Test tip Member offerings
Offering of Securities by FINRA Members When a FINRA member firm wishes to raise money by offering securities for sale to investors special rules apply to the offering. When a FINRA member firm goes public it may not underwrite its own securities. The member wishing to go public must engage the services of a qualified […]
Series 63 Question of the Week
Under the Uniform Securities Act, which of the following would not have to be disclosed when filing a registration by qualification? A. A statement analyzing the issuer’s profit margin over the last three years compared to the profit margins of its primary competitors B. The capitalization and long-term debt of the issuer and any significant […]
Series 4 Question of the Week
An investor has a margin account as follows. Regulation T is 50%. Long 100 XYZ @ 80\tab Debit Balance $11,700 Long 100 PDQ @ 100\tab SMA -0- He sells 20 shares of PDQ for $2,000. The SMA can be credited with: A. $0 B. $1,000 C. $500 D. $2,000 Correct Answer(s): B. $1,000 Explanation: The […]
Series 9 Question of the Week
An investor establishes the following: Short 700 ONST at 39.20 Short 7 ONST May 37.50 puts at 2.90 Which of the following are not false? I. The investor has the potential for an unlimited gain II. The investor’s potential loss exceeds their potential gain III. The Investor is bearish IV. The investor is fully hedged […]
Series 10 Question of the Week
Your firm is a market maker and is participating in an offering of securities as a syndicate member. You firm is acting as a passive market maker and has purchased 12,000 shares which is 98% of its ADTV. An order comes into the firm’s trading desk to sell 3,000 shares at 2:40. Which of the […]
Series 26 Question of the Week
Many large mutual fund companies offer the following privileges to their investors: A. Combination privileges B. Conversion and exchange privileges C. 30-Day emergency withdrawal D. All of the choices listed Correct Answer(s): D. All of the choices listed Explanation: Large mutual fund companies frequently offer all of the choices listed privileges to their investors.
Series 6 Question of the Week
A corporation may pay a dividend in which of the following ways? A. Stock B. Cash C. Stock of another company D. All of the choices listed Correct Answer(s): D. All of the choices listed Explanation: All of the ways listed are ways that a company can pay a dividend.
Series 7 Question of the Week
All of the following pay dividends except: A. Common stock. B. Preferred stock. C. ADRs. D. Warrants. Correct Answer(s): D. Warrants. Explanation: Warrants do not pay dividends.
Series 65 Question of the Week
A client has received inside information from a friend about a new technology stock in the market. The client has instructed his broker to enter an order to sell 1000 shares of the stock shortly after he purchased the shares, and he is realizing a material gain of $10,000. What would be the outcome of […]
Series 24 Question of the Week
A firm wishing to quote an issue in the OTCBB may piggyback another dealer’s continuous quote in the pink sheets if: I. The security has a bid price of at least $5 II. The issuer is not in bankruptcy III. The security is issued by a domestic issuer IV. The issuer current with its reporting […]