Security Industry Essentials Practice Test 23

1. A representative's personal account has been identified for review because of account activity in which securities were bought and quickly sold, often on the following day. This may be evidence of the prohibited practice called

2. When calculating total return on a bond,

3. A communication made available to 20 institutional clients and 20 retail clients is classified as

4. All the following are exempt from the registration requirements of the Securities Act of 1933 except

5. The threshold to qualify for a sales charge discount on a mutual fund is $75,000. An investor places an order for $72,500 of this fund and is not informed by the registered rep that he would be entitled to a sales charge discount if he invests an additional $2,500. This is an example of a

6. Bonds that are issued by state and local governments but benefit a private corporate are

7. An upward sloping yield curve indicates

8. Accrued interest is calculated from the

9. Which of the following terms describes a broker-dealer's practice of interjecting another broker-dealer into the middle of a trade, resulting in an increase in commission at the customer's expense?

10. Penny stocks present added risk to customers because of

11. For existing customer accounts, how often do broker-dealers required to send a written notice to the customer for verification of account information?

12. Commercial paper, bankers' acceptances and large time deposits are part of what segment of the fixed income market?

13. Joe is a registered rep currently employed by MidWest Broker-Dealer, a St. Louis based firm. Joe likes to leave downtown and drive through the rural fields of the Midwest on the weekends. He so enjoys the open plains that he chats with his 12 closest family members to borrow $200,000 and open his very own farm. Which of the following is true regarding this action?

14. A company "reverse splits" its stock on a 1-for-10 basis. If an investor holds 800 shares before the event, what will be the impact of the split, if any, on the total value of the investors' shares?

15. Which of the bonds listed below would have the greatest price volatility?