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Bubba buys a 5% bond that matures in 15 years with a 5.10 basis. How much did he pay for the bond?

A.

5.00

B.

98.96

C.

100.00

D.

105.10

The FINRA markup policy requires that over-the-counter transactions with a customer be at:

A.

prices reasonably related to the current market price of the security

B.

a markup not to exceed 5% of the current offering price

C.

prices reasonably related to the dealer’s cost

D.

a markup based on previous activity in the customer’s account

Bubba Corporation owes income tax. Which of the following may be tendered at par value for payment of the tax?

A.

term bond

B.

tax anticipation bill

C.

special tax bond

D.

pre-issue bond

Bubba has a short margin account with a short market value of $22,000, a credit balance of $42,000, and SMA of $500.

What is the NYSE minimum equity maintenance for this account?

A.

$5,500

B.

$6,000

C.

$6,600

D.

$12,600

A registered representative is given a limited trading authorization by a client. This permits the representative to:

A.

withdraw money from the account

B.

enter orders for the account at the representative’s discretion

C.

withdraw securities from the account

D.

all of the above

Under the Investment Company Act of 1940, what is the minimum net worth of a registered investment company?

A.

$100,000

B.

$50,000

C.

$25,000

D.

$5,000

Under Rule 415 a corporation may file a single registration statement with the SEC covering its anticipated financing need for the next:

A.

one year

B.

two years

C.

three years

D.

five years

In order to determine the amount of estate tax due, if any, the assets of a decedent’s estate are valued as of the date of death. A second evaluation is then made:

A.

three months after the date of death

B.

six months after the date of death

C.

one year after the date of death

D.

at any time up to six months after the date of death

Bubba is age 54 and has investments in a retirement plan with his former employer valued at $104,500. Bubba withdraws $25,000 to open a retail clothing store.

Which of the following statements is true regarding Bubba’s tax consequences?

A.

the entire account is terminated and $104,500 is immediately taxable

B.

a penalty of 10% of the withdrawn amount is assessed

C.

a penalty of 10% on all assets in Bubba’s account is assessed

D.

only regular income tax is due on the amount withdrawn

Which of the following municipal bonds may be grouped under the classification of “revenue bonds”?

A.

special tax

B.

new housing authority

C.

general obligation

D.

limited tax