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FINRA Practice Exam Questions And Answers Latest Update
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FINRA Practice Exam Questions And Answers Latest Update
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FINRA Practice Exam Questions And AnswersLatest Update
A savings account at a bank is guaranteed by which of the follow entities?
A) FDIC
B) SIPC
C) FED RES
D. Department of the treasury
A
A firm is a participant in a public offering. To sell a Substantial amount of the
securities to its customers, the firm agrees to repurchase the shares at no less
than the original sales price.
A. Prohibited as fraudulent and manipulative
B. Permissible if the securities are deposited into escrow
C. Prohibited unless the firm immediately sets aside funds for the repurchase
D. Permissible if the customers retain the right to sell the securities into the open
market
A
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The computation of dollar prices and accrued interest on municipal bonds is
normally on what calendar basis?
A. 30/360
B. 30/365
,C. Actual 360
D. Actual 365
A
Which of the following comparisons BEST describes the essential difference
between a primary distribution and a secondary distribution?
A. A primary distribution can only be made for equity issues while a secondary
distribution can be made for both equity and debt issues
B. A primary distribution can only be made of issues that exceed a specified dollar
amount while a secondary distribution can be made for issues of all sizes
C. A primary distribution must be made at a fixed public offering price (POP) while
a secondary distribution must be made at the current market price
D. A primary distribution involves a sale of newly issued shares by the issuer while
a secondary distribution involves the sale of already issued and outstanding
shares.
D
Which of the following investments are generally traded according to their
average life rather than their stated maturity dates?
A. Corporate bonds
B. Government bonds
C. Assets-backed securities
D. Fixed-rate capital securities
C
Under normal circumstances, a customer's letter of intent on a mutual fund
purchase is valid for what maximum period of time?
A. 3 months
B. 6 months
C. 13 months
D. 24 months
C
,A customer buys 1 ABC Jan 35 put for a premium of $3 and simultaneously buys
100 shares of ABC stock for $35 per share. The customer will break even when the
stock is selling at what price per share at expiration?
A. $3
B. $32
C. $35
D. $38
D
Which of the following form U4 reportable events results in a statutory
disqualification?
A. A personal bankruptcy filing
B. A written customer complaint alleging misappropriation of assets
C. A felony theft charge
D. A felony conviction for a driving under the influence (DUI) charge
D
To offer its shareholders a privilege to obtain its shares at a fixed price, which of
the following products does a corporation issue?
A. Puts
B. Rights
C. Futures
D. Preferred Stock
B
When a broker-dealer charges a commission on a securities transaction, it has
acted as:
A. an agent
B. a principal
C. an underwriter
D. a market maker
A
, Which of the following considerations should a registered representative explain
to a customer when recommending a 529 college savings plan?
A. The potential deductibility of contributions from state taxes
B. The potential deductibility of contributions from federal taxes
C. The income eligibility restrictions to contribute to the account
D. The rights of the account beneficiary to the assets at the age of majority
A
Under a system of statutory voting, a common stockholder has as many votes for
each vacancy on the board of directors as the number of:
A. Positions vacant on the board
B. Directors present at the meeting
C. Shares owned by the stockholder
D. Proxies available for voting by the board
C
Which of the following stakeholders has first claim priority in a chapter 11
proceeding?
A. Equity holders
B. Secured debt holders
C. Unsecured debt holders
D. Administrative claim holders
B
Under Federal Reserve Regulation T, a 90-day restriction is imposed when a
customer opens and closes which of the following positions?
A. The same stock on the same day in a margin account
B. The same stock in different accounts on same day
C. The same stock in different accounts in the same household
D. The same stock in a cash account without paying for the stock in full
D
The redemption value of an open-end investment company's shares is based on
the:
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