Six consecutive quarters of economic decline is called what?
Depression
100
How does a dealer receive compensation for selling securities?
Charges a markup
100
Which Act formed the Securities Exchange Commission?
Act of 1934
100
What type of security hedges against inflation?
Common Stock
100
If a Bond was sold for 101 points it was sold at a _________, because it sold higher than par value.
Premium
200
What is the interest rate the FRB charges member banks called?
Discount Rate
200
What securities can a representative with only a Series 6 sell? (What Market)
Securities in the Primary Market.
200
Which Act gave the SEC authority to delegate authority to existing exchanges and to create self-regulatory Organizations (SRO)?
Act of 1938 (Maloney Act)
200
What type of equity security would be most suitable for an investor with a low risk tolerance and an investment objective of current income?
Preferred stock
200
What is the maximum duration of a Treasury Bill?
270 Days
300
The total value of goods and services provided in a country during a year is called what?
GDP - Gross Domestic Products
300
If I am optimistic the market will rise and I sell Put options, what am I?
Bull
300
Which Act requires a prospectus to be provided during the sale of securities?
Act of 1933
300
What type of Preferred stock has the highest degree of risk and would most likely pay a larger dividend?
Callable
300
An investor in a high tax bracket would like to take advantage of the tax benefits of a Treasury securities. Which Treasury security (Bonds, Notes, or Bills) is the safest, and offers the greatest tax benefit?
None. Treasury securities are backed by the U.S. Government but do NOT offer tax advantages. Municipal Bonds offer tax advantages.
;-)
400
What is the correct order of the Economic Cycle?
A) Peak, Expansion, Contraction, trough
B) Trough, Contraction, Peak, Expansion
C) Contraction, Peak, Trough, Expansion,
D) Expansion, Peak, Contraction, Trough
D
400
Which market sells securities by auction based on supply and demand?
Secondary Market
400
Which Act regulates the Primary Market?
Act of 1933
400
An investor owns 1,000 shares of common stock and is voting on three vacant seats on the BOD with 7 candidates. Using the Cumulative voting method, what is the maximum number of votes he can cast for one seat?
3,000
400
A bond with a current yield that is lower than the coupon rate was sold at a _____________.
Premium
500
The Federal Reserve Board controls the money supply by doing all of the follow EXCEPT: A) Raise or lower Discount Rate.
B) Tighten tax regulations and spending
C)Buy or sell U.S. Treasury securities on the FOMC
D)Raise or lower the reserve requirements
B
500
How is a broker compensated for the sale of securities?
Commission
500
Which Act regulates the Secondary market?
Act of 1934
500
A company was authorized to sell 10,000,000 shares. They sold 5,000,000 during the IPO and later sold an additional 2,500,000 shares. The company has since purchased back 4,000,000 shares from the stockholders. How many shares of Treasury stock does the company have?
4,000,000
500
A bond sold for 98 points has a current yield of 5.8% and a nominal yield of 5%. What will be the final payment amount of this bond at maturity?