If an Open- End Investment Company has a 12b-1 fee, which of the following are TRUE?
I. These fees are commonly referred to as asset-based distribution fees.
II. The fund may advertise as a no-load if the 12b-1 charges are kept under .75%
III. The plan may be terminated by a vote of the shareholders, the board of directors, or the non
interested members of the board.
IV. To Terminate 12b-1 fees, a majority of the non interested board members of a majority vote of
outstanding shares is needed.
A. I and IV
B. II and III
C. I and III
D. II and IV - A
Which of the following are provisions of the Securities Exchange Act of 1934?
I. Regulates the sale of new issues of securities
II. Regulates secondary markets
III. Regulates investment advisers
IV. Registers Broker/dealers
,A. I and III
B. III and IV
C. I and II
D. II and IV - B
The declaration of dividend for holders of common stock in a corporation will result in payment of a
dividend to holders of that corporation's:
I. Convertible Preferred Stock
II. Noncumulative Preferred Stock
III. Outstanding Warrants
IV. Debentures
A. II and III
B. III and IV
C. I and IV
D. I and II - D
All of the following are generally considered speculative investments EXCEPT: (Got this wrong)
A. Uncovered Call Options
B. B Rated Debt Securities
C. Short Sales
D. Blue- Chip Stocks - D
A husband and a wife open a new account as TIC. All of the following statements regarding this account
are true EXCEPT:
A. Mail may be sent to either party with the permission of the other party
,B. In the event of death, the decedent's interest in the account goes to the surviving party
C. Orders may be given by either party
D. If certificates are requested, they must contain the names of both parties. - B
Which of the following constitutes selling dividends? (WRONG)
A. Encouraging investors to postpone purchases of mutual fund shares until the after the ex-date for a
dividend distribution
B. Encouraging customers to sell their mutual fund shares just before the ex-dividend date
C. Withdrawing dividends, rather than reinvesting them in additional shares
D. Enticing customers to buy mutual fund shares just before the ex-dividend date - D
ABC broker/dealer must file which of the following with FINRA?
I. Website
II. Email to prospect reviewing a recommendation for investment
III. Radio advertisement
IV. Promotion sent to 50 nonprofit organizations
A. I and III
B. II and IV
C. I and IV
D. II and III - A
, Which of the following activities might lead a registered representative with a member firm to suspect a
client might be engaging in illegal practices? (WRONG)
A. The client still chooses to engage in a transaction once he learns that a currency transaction report
will have to be completed
B. The client wires money to unrelated accounts
C. The client complains frequently about what he feels are overly large commissions
D. The client seems unduly concerned about losses in his account. - D
Which of the following would be eligible to open a Keogh plan?
A. A salaried investment company employee
B. A CPA who operates as a sole proprietorship
C. The CEO of a publicly traded corporation
D. A group of physicians who have incorporated their practice together - B
A FINRA member broker/dealer enters into a selling agreement with a mutual fund distributor. Under
the terms of that agreement, the member:
I. May purchase shares for its own investment account
II. Will be able to purchase shares of the fund at a discount from the NAV
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