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Approval for a registered investment company to change is investment objective from income to growth is required from which of the following?

A.

the FINRA

B.

the SEC

C.

a majority of the shareholders

D.

all of the above

To accommodate a customer’s order to buy an over-the-counter stock, a broker/dealer is permitted to:

A.

sell him shares from the firm’s inventory

B.

sell these shares short to the customer

C.

act as agent on this transaction

D.

all of the above

What does the following mean when printed on the stock exchange ticker tape?

A.

one hundred shares of MST traded on the exchange and appear out of order on the tape

B.

trading was suspended on MST pending dissemination of news

C.

the last sale of MST was for 100 shares at 98.25

D.

the preceding transaction in MST was two or more points different than 98.25

Bubba Corporation has a profit sharing plan. The company president, Bubba, is receiving the maximum plan contribution amount. The corporation has one other employee, who is eligible for the plan.

If this person earns $12,000 per year, how much must be deposited in the plan for the employee?

A.

$6,000

B.

$3,000

C.

$1,800

D.

$12,000

Bubba is long spot Canadian dollars at 0.7400. If he wants to buy one put option on Canadian dollars with a strike price of 74 and a cost of $0.35, what is Bubba’s breakeven price for Canadian dollars?

A.

0.4900

B.

0.7365

C.

0.7400

D.

0.7435

Service charges by a FINRA dealer for transfer and safekeeping of customer securities held in street name:

A.

may not be levied under FINRA Conduct Rules

B.

may not be levied unless there is no trading in the account for more than six months

C.

may be levied only if the security has a value of less than $5,000

D.

may be levied only if the charge if fair, reasonable, and non-discriminatory

Although a corporation has no earnings in a particular year, it is obligated to pay interest on all its outstanding debt except the following:

A.

convertible subordinated debentures

B.

collateral trust bonds

C.

adjustment bonds

D.

equipment trust certificates

For a self-employed individual’s retirement plan, ERISA permits an investment in which of the following?

A.

a unit investment trust

B.

a variable annuity

C.

a US Treasury bond

D.

all of the above

A leveraged company is best described as one that has a small portion of its capitalization represented by:

A.

common stock

B.

preferred stock

C.

debentures

D.

convertible bonds

Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share and wishes to satisfy the margin call by delivering another listed security into his account.

He may do so by depositing stocks with a market value of:

A.

$9,333

B.

$5,714

C.

4,000

D.

$2,800