Category FINRA

QUESTION 13
A customer wants to establish an account for the benefit of his grandchildren. He states to his registered representative that he wants to be able to control the distribution of the assets and direct how the account will be invested. Which of the following account types is most appropriate?

QUESTION 14
A customer purchases 100 shares of stock on Thursday, August 2. This transaction must settle regular way no later than:

QUESTION 15
Which of the following statements describes a characteristic of exchange-traded funds (ETFs)?

QUESTION 16
A registered representative (RR) opens a new account for a customer whose investment objectives are growth and income. She makes an initial deposit of $5,500 using a series of money orders drawn from different sources, and she makes no investments for the first 30 days the account is open. At the end of that time, the customer asks to have the funds wired to an account at a different firm as her needs have changed. The RR’s first course of action should be to:

QUESTION 17
Which of the following statements is true regarding the SEC’s characterization of a registration statement that has just been made effective?

QUESTION 18
Which of the following rates is the interest rate at which banks borrow and lend to each other on an overnight basis?

QUESTION 19
Corporate bonds unsecured by any pledge of property are called:

QUESTION 20
The cash value of a variable life insurance policy is affected by which of the following factors?

QUESTION 21
A retail investor owns shares of Mutual Fund ABC that paid a $0.25 dividend on September 1 and closed at
$10.00. What is the opening price once this fund trades on the ex-dividend date?

QUESTION 22
A customer will be out of the country for the next two months on business and asks his firm to hold his mail until he returns. Which of the following statements is true regarding this request?

QUESTION 23
An investor holds 1,000 shares of a stock with a total cost basis of $5,000 in his account when a 1-for-5 reverse stock split is announced. What will be the investor’s total cost basis after the payable date of the reverse split?

QUESTION 24
A broker-dealer (BD) creates a marketing postcard that includes a statement regarding FINRA’s endorsement of the BD. Which of the following responses is true?

QUESTION 25
Class A and Class C shares of a mutual fund differ in which of the following ways?

QUESTION 26
A registered representative who is terminated from a broker-dealer must notify FINRA of a residential address change for what period of time after termination?

QUESTION 27
Which of the following statements is true of the writer of a listed equity call option?

QUESTION 28
At a prospecting event, a registered representative (RR) provides cards for attendees to write down their contact information if they want to have a follow-up meeting with her. Which of the following actions should the RR take in this situation to comply with telemarketing rules?

QUESTION 29
Which of the following terms describes failure to honor a firm quote?

QUESTION 30
A customer purchased $80,000 of Fund XYZ two years ago. He now wants to buy $50,000 of Fund LMN offered within the same fund family, which offers a $100,000 breakpoint under right of accumulation. Which of the following statements is true?

QUESTION 31
A customer buys 100 ABC at $50 and at the same time sells an ABC April 50 call at $8. At expiration, ABC must be at what market price for the customer to break even?

QUESTION 32
Which of the following statements best describes the permissibility of a borrowing arrangement between a registered representative (RR) and a customer who is also the RR’s grandfather?

QUESTION 33
Under which of the following circumstances, if any, is it permissible for an individual without a Power of Attorney (POA) to sign a customer’s name on their behalf?

QUESTION 34
Which of the following is a reportable obligation with respect to an individual’s Form U4?

QUESTION 35
A bond with a par value of $1,000 that is backed by the taxing power of a local government is known as:

QUESTION 36
According to FINRA rules, under which of the following circumstances, if any, is a member firm permitted to send gifts to a registered representative of another member firm?