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 […]
Series 66 Question of the Week
The broker call loan rate is: A. The rate that member banks charge each other for overnight loans B. The rate that banks charge their most credit worthy corporate customers on loans C. The rate that the Federal Reserve Bank charges member banks on loans D. The rate that banks charge to broker dealers to […]
What is the Limit Up – Limit Down Rule?
The SEC enacted the use of a Limit UP Limit Down (LULD) rule. This rule is designed to ensure that prices of individual securities reflect fundamental prices based on supply and demand and do not move outside of established parameters based on errors or manipulative actions. Upper and lower trading bands will be established based […]
Series 24 market maker registration and responsibility
Here are some of the key points that you need to know about market maker registration and responsibility to help you pass you series 24 exam. All broker dealers that wish to register as a market maker must file an application with FINRA and demonstrate that they are in good standing with FINRA and that […]
Series 65 Security Valuation and Analysis
Here is some great information on dividend valuation models and statistical analysis to help you pass your series 65 exam Dividend Valuation models A fundamental analysts may use a dividend valuation model to determine a fair valuation for an equity security and to determine if an investment is warranted The two dividend valuation models most […]
What you need to know about TIPS, Eurbonds and CDS to pass your Exam
Here is what you need to know about TIPS, Eurobonds and credit default swaps or CDS to pass your FINRA Exams Treasury Inflation Protected Securities or TIPS are direct obligations that are designed to protect investors from the negative impact of inflation. A conservative investor purchases a TIP with a coupon rate of 4 percent. […]