1
Suppose bond B is trading for $1,000 with a stated coupon rate of 7%. What is the nominal yield of this bond?
7%
To maintain compliance with the Internal Revenue Code, qualified retirement plans must do what?
Provide minimum distributions by age 72.
Suppose a government agency bond has a trade date of Tuesday, January 6. Using a T+2 settlement date, what is the settlement date of this bond?
Thursday, January 8
What is best described as the time between the trade date and the settlement date?
Trade settlement period
Supervision records must be kept for how many years?
3 years
A Stretch IRA has historically been used as a wealth transfer method. The traditional school of thought surrounding the use of Stretch IRAs changed with the passage of what?
SECURE Act
Which type of investment provides a tax benefit at the time the investment is made?
traditional IRA
Buy stop orders are ___________, meaning there is an expectation that the market as a whole or a specific security is going to rise.
Bullish
Suppose Company LMN declares a 1:10 reverse stock split. Investor A owns 50 shares of LMN before the reverse split. After the reverse split, how many shares does Investor A have?
5 Shares
During which step of the money-laundering process do the money launderers move layered funds into the economy?
Integration
Suppose Jan, an investor, buys 1,500 shares of ABC at $5.00 a share. Under Regulation T, what is the minimum deposit required for this transaction?
$3750
Common stock splits are 1:10 and 1:5, True or False?
FALSE
Parents can elect to report their children's interest, ordinary dividends, and capital gains distributions on their tax return. If a parent makes this election, the parent will owe no taxes, True or False?
FALSE
FIRNA defines which of the following as the 'extent to which a customer desires the ability or has financial obligations that dictate the need to quickly and easily convert to cash all or a portion of an investment or investments without experiencing a significant loss in value from, for example, the lack of a ready market, or incurring high costs or penalties'?
Liquidity Needs
Associated person records must be kept for at least how many years after the associated person has terminated employment and all other connections with the firm?
Three Years
FINRA defines what as a customer's 'ability and willingness to lose some or all of [the] original investment in exchange for greater potential returns'?
risk tolerance
Companies sometimes use a tender offer to acquire its own securities. This is an example of which of the following types of tender offers?
Issuer tender offer
Tax-advantaged savings plans that are designed to encourage saving for future education costs and are sponsored by states, state agencies, colleges, and other educational institutions?
529 plans
What is a tax-advantaged way to save money for elementary or higher education for a beneficiary in which contributions are made with after-tax income?
Education Savings Account (ESA)
Abandoning calls is prohibited by the rules. To avoid being considered abandoned, calls must be connected to a person within how many seconds of the individual called answering the call?
2 seconds
Evergreen Technologies and Blue Ocean Enterprises have agreed to a business combination in which both companies transfer all of their assets to a new company'Gaia Worldwide, Inc (GWI). In exchange, each of the companies will receive stock in Gaia, which will be distributed to Evergreen and Blue Ocean shareholders. This is an example of which type of transaction?
Merger
Under Regulation S-P, broker-dealers must provide an initial privacy notice to consumers, and at which of the following intervals?
A) Monthly
B) Quarterly
C) Semi-annually
D) Annually
D) Annually
Whether a margin position is short or long, no funds can be provided unless the customer has equity of at least how much?
$2,000
FINRA AML program rules dictate that firms create AML compliance programs and that those AML programs, at a minimum, established policies and procedures and internal controls reasonably designed to detect and mandate reporting of suspicious transactions and take any other required measures to comply with the Bank Secrecy Act. True or False?
TRUE
On March 3, Trident Enterprises announces a three for one stock split. Before completing the split, Trident shares were trading at $24 per share. What will be the price for Trident stock immediately following the split?
$8