Series 7|150 Review Questions Perfectly Answered|2024
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Course
Series 7
Institution
Series 7
100 basis points equals - ️️1 %
100 Basis points equals - ️️1%
a 10% stock dividend ... - ️️does not affect # of preferred shares
A basis point is equal to - ️️1/100 of a percent
a broker-dealer will adjust open order for all of the following, EXCEPT: - ️️Reverse stock split...
a 10% stock dividend ... - ✔ ✔ does not affect # of preferred shares
A basis point is equal to - ✔ ✔ 1/100 of a percent
a broker-dealer will adjust open order for all of the following, EXCEPT: - ✔ ✔ Reverse stock splits
A brokerage firm must send a copy of a new account form to its customers no later than - ✔ ✔ 30
days from the time the account is opened
A constant dollar investment plan requires - ✔ ✔ that the same aggregate dollar amount be kept
invested in equities
A contract is trading at parity if the premium equals - ✔ ✔ equals the intrinsic value
A convertible bond issue by a corporation would be most suitable for which of the following? - ✔ ✔
An investor who has both income and capital growth investment objectives
A counter-cyclical stock would be described by which of the following? - ✔ ✔ A stock price that
tends to move in the opposite direction of the market as a whole
A customer buys an ABC April 50 put and sells an ABC Mar Put. The customer profits if: - ✔ ✔ the
spread widens
A customer has a long stock position that has appreciated greatly in value. It is now October and the
customer wants to protect the gain at no cost, but not be taxed until the next year. To achieve this, the
customer could: - ✔ ✔ sell a "deep in the money" European style call of the stock
A customer has bought an options contract and after 15 days, still has not returned the Options
Agreement. The customer is only allowed to make which of the following transactions in this account? -
✔ ✔ closing sale
A customer has invested 30k in variable annuity contract. The current NAV is 50k. The customer dies
prematurely at age 50. What is the tax consequence? - ✔ ✔ The cost basis in the contract is 30k an
the 20k build up is taxable at ordinary income rates
, A customer places an order to sell 100 shares of XYZ at the market. The initial execution report shows
the trade occurring at $38.50 and this is reported to client. The firm later discovers that the trade that
occurred at $38.25. Which statement is true? - ✔ ✔ The customer must accept the actual sale price
of $38.25
A customer who is retired and wants to select an investment that is marketable, and that provides the
highest rate of return. - ✔ ✔ Investment Grade Preferred Stock
a due bill is used to - ✔ ✔ claim a dividend that is sent to the wrong person
a fund's 12b-1 fees are used for - ✔ ✔ a fund's distribution and marketing costs
A fundamental analyst is likely to use technical analysis to determine - ✔ ✔ transaction timing
A grandmother wishes to make a gift into her grandson's 529 college savings plan. What is the maximum
amount that can be contributed without incurring gift tax liability ? - ✔ ✔ 5 times the annual gift tax
exclusion amount
A major benefit of Direct Participation Program (DPPs) is: - ✔ ✔ Ability to offset passive income with
passive losses
A RR prepares the firm's standard options worksheet for a customer, detailing an income strategy for
writing covered call against "blue chip" stocks that the customer holds in his cash account. What is
TRUE? - ✔ ✔ The customer must receive an Options Disclosure Document before receiving, or with
the completed standard options worksheet
A short seller is prohibited from covering short sales with offered securities purchased from an
underwriter participating in the offering if the short sale occurred how many days prior to the pricing of
the offered securities? - ✔ ✔ 5 days
ABC is a company that is about to go public in an IPO. XYZ is a broker-dealer that wishes to publish a
research report on the IPO. XYZ is not participating in the IPO. Which of the following is true? - ✔ ✔
XYZ can publish the report if it has no arrangement with ABC or any distribution participants
According to Reg T, margin account customers must deposit - ✔ ✔ at least 50% of the market value
of the transaction within 4 business days
Accrued interest for municipal bonds is calculated based on the assumption that a year has - ✔ ✔
360 days
Ad valorem taxes - ✔ ✔ are taxes based on the value of the asset being taxed
ADRs can best be described as - ✔ ✔ receipt for shares of foreign stock held in a foreign branch of
American bank
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