FINRA Security Industry Essentials Practice Test 32

1. A firm participating in the offering of a private placement may sell the private placement to no more than __________ nonaccredited investors in any 12-month period?

2. The city of Miami is seeking to raise $10 million through the sale of general obligation bonds to repair the high school's football field. The bonds are going to be issued ex-legal. Which of the following is correct?

3. Which of the following is NOT a type of order?

I. Best efforts.

II. Mini/maxi.

III. Fill or kill.

IV. All or none.

4. ABC Technologies, a very volatile stock, closes at $180 per share. Your customer has placed an order to sell 500 ABC at 165 stop limit 160 GTC. After the close, the company announces bad earnings and the stock opens at 145. What happened to your customer's order?

5. Your brokerage firm acts as a market maker for several high-volume stocks that are quoted on the Nasdaq. What is the firm's consideration for being a market maker?

6. The OCC is:

7. Your customer is long 100 shares of MSFT. The investor wants to protect the position without spending any additional money, what should he do?

8. An investor wires $10,000 into his mutual fund on Tuesday, March 11, and the money is credited to his account at 3 p.m. He will be the owner of record on:

9. A mutual fund that assesses a charge to cover promotional expenses would be charging:

10. A fixed annuity guarantees all of the following except:

11. An investor has placed a sum equal to 50% of the annual contribution limit into his traditional IRA. The investor is seeking to maximize his contributions to his retirement savings. Which of the following is correct?

12. The maximum amount that a couple may contribute to their IRAs at any one time is:

13. A client who is 65 years old has invested $10,000 in a Roth IRA. It has now grown to $14,000. He plans to retire and take a lump sum distribution. He will pay taxes on:

14. Which of the following is NOT allowed as a joint account?

15. Which of the following is not a violation of the rules of conduct?