Options
Overview of fin markets
Industry rules
Customer Account
Jacob
100

 

When opening a new customer account to trade options, which of the following documents is not needed? 

  1. A new account agreement 
  2. An options account agreement 
  3. A hypothecation agreement 
  4. The approval for options trading

C. A hypothecation agreement

100

The department of a brokerage firm that advises a corporation regarding the structure and timing of a future issue of stock, and assists in the underwriting of the securities is the: 

  1. Purchase and sales department 
  2. Reorganization department 
  3. Investment banking department 
  4. Sales and trading department

c. Investment banking department 

100

 

The transfer of bonds from one party to another may be accomplished by an endorsement on the back of the bond certificate or through a:

  1. Letter of credit
  2. Legal opinion
  3. Bid form
  4. Bond power

d. Bond power

100

 

What form is used to move an account from one broker-dealer to another broker-dealer?

  1. A new account form
  2. A Transfer Initiation Form
  3. A hypothecation agreement
  4. A Power of Attorney

b. A Transfer Initiation Form

100

What is Jacob's favorite water brand

Aquafina

200

When referring to call option contracts, the term open interest means the: 

  1. Number of contracts that have not been closed out through a sale or by expiration 
  2. Number of opening purchases that have been liquidated with a closing sale 
  3. Number of opening sales that have been liquidated with a closing purchase 
  4. Total number of contracts of the same series that were traded on a given day
  1. Number of contracts that have not been closed out through a sale or by expiration
200

 

In a dispute between a registered representative and his employer, the dispute typically must be settled by: 

  1. Arbitration 
  2. The SEC 
  3. FINRA 
  4. The MSRB

a. Arbitration 

200

A registered representative wants to use a social networking site that permits real-time communication. Which of the following statements is TRUE?

  1. The Web site must be approved by FINRA
  2. The Web site must be approved by the SEC
  3. This falls under the definition of a public appearance
  4. This falls under the definition of a correspondence

c. This falls under the definition of a public appearance

200

Which TWO of the following statements are TRUE regarding account statements that are sent by member firms to customers?

  1. Active accounts receive monthly statements 
  2. Active accounts receive quarterly statements 
  3. Inactive accounts receive monthly statements 
  4. Inactive accounts receive quarterly statements 
  1. I and III 
  2. I and IV 
  3. II and III 
  4. II and IV

b. Active accounts receive quarterly statements

200

What are 2 noises that Jacob always makes

Lets here them

300

 

A customer wishes to close out a short option position by liquidating the option. The registered representative should mark the order ticket: 

  1. Closing purchase 
  2. Closing sale 
  3. Opening purchase 
  4. Opening sale
  1. Closing purchase
300

 

Self-regulatory organizations generally have rules that: 

  1. Mandate commission schedules that brokerage firms must charge 
  2. Are designed to maintain a fair and orderly market 
  3. Mandate all brokerage firms stand ready to buy or sell securities from their own account to maintain liquidity 
  4. Require brokerage firms to use reasonable diligence to provide customers with best execution 
  1. I and II only
  2. I and III only
  3. II and III only
  4. II and IV only

d. II and IV only

300

 

A securities firm is permitted to charge customers a fee for:

  1. Collecting dividends and/or interest
  2. Appraisal of securities
  3. Holding securities in safekeeping
  4. Transfers and/or exchanges
  1. II and III only 
  2. II and IV only 
  3. I, III, and IV only 
  4. I, II, III, and IV

d. I, II, III, and IV

300

 

Under SRO rules, the carrying firm must complete the transfer of a customer account: 

  1. Within one business day of receipt of the transfer instructions 
  2. Within three business days of validation of the transfer instructions 
  3. Immediately upon receipt of the transfer instructions 
  4. Immediately upon validation of the transfer instructions

b. Within three business days of validation of the transfer instructions

300

What is my dog's name and breed

Ivy, chocolate lab

400

 

An exercise limit is the maximum number of options contracts that a customer may exercise in a five-consecutive-business-day period for each: 

  1. Account that she maintains at each brokerage firm 
  2. Underlying stock on each side of the market 
  3. Series of options in an underlying stock 
  4. Underlying stock on the long side of the market only

b. Underlying stock on each side of the market

400

 

Which of the following choices is NOT considered of material value by FINRA if given by a mutual fund underwriter to a registered representative? 

  1. A gift of $100 
  2. A gift of $200 
  3. Overrides in excess of commissions as stated in the prospectus 
  4. A gift of $500
  1. A gift of $100
400

 

An email sent to 40 persons, 30 retail investors and 10 institutional investors, within a 30-calendar-day period would be considered:

  1. An institutional communication
  2. Institutional correspondence
  3. A retail communication
  4. Correspondence

c. A retail communication

400

 

A 17-year-old, whose birthday is approaching, wants to open his own brokerage account at a firm. Which of the following choices is the BEST course of action for the RR to take?

  1. Open the account with approval of the 17-year-old's parents
  2. Open the account with the approval of the branch manager
  3. Refuse to open the account
  4. Open the account since he about to be the age of 18

c. Refuse to open the account

400

Who was I for halloween not this year, but last year

lil pump

500

 

If an equity option is exercised, when is the settlement date for the stock transaction?

  1. On the same business day
  2. On the next business day
  3. Within two business days
  4. Within seven business days

c. Within two business days

500

 

An employee of a broker-dealer is required to obtain her firm's prior written consent to:

  1. Open an account at a financial institution in order to obtain a mortgage
  2. Open an account at a financial institution in order to obtain a line of credit
  3. Open an account at a bank in order to trade securities
  4. Open an account at a bank which permits her to move funds between accounts

c. Open an account at a bank in order to trade securities

500

 

A bond is still considered in good deliverable form when missing the: 

  1. Serial numbers of the bonds 
  2. Coupon rate 
  3. CUSIP numbers 
  4. Maturity date

CUSIP

500

 

If a customer's confirmation shows that a transaction was executed at $65 per share plus a markup of $.50, the consolidated tape will show:

  1. $65.50
  2. $64.50
  3. $65.00 +.50
  4. $65.00

d. $65.00

500

Describe my perfect girl

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