FINRA Security Industry Essentials Practice Test 38

1. Which of the following is an order to sell a stock at a price below the current market price?

2. Which of the following was adopted to update short sale regulations and to address concerns regarding potentially abusive naked short selling?

3. Which of the following is a fraudulent investment operation where the operator provides fabricated reports and generates investment returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profits of financial trading?

4. Which of the following is a self-regulatory organization (SRO)?

5. Which of the following is the largest options exchange in the U.S., and focuses on options contracts for individual equities and indexes?

6. Which of the following is the formula to calculate an investment's real return?

7. A currency transaction report (CTR) is a report that U.S. financial institutions are required to file with which of the following?

8. Investment advisers that have custody of client assets or require prepayment of advisory fees __________ or more in advance, and in excess of __________ for each client, must file an audited balance sheet with the SEC as of the end of the investment adviser's fiscal year.

9. All but which of the following are among the three categories of firm communications that are defined and regulated by FINRA Rule 2210?

10. Which of the following refers to the right to demand the repayment of monies paid if there has been a bad delivery of a stock or security?

11. Which of the following is an advertisement used by a registered investment company that advises readers to obtain a full prospectus? It is not permitted to include an application to invest, and it must contain specific caveats pursuant to SEC Rule 482.

12. Which of the following is a note issued in which the government borrows money to finance a project and then repays lenders with revenue generated by the same project?

13. Which of the following is a type of public offering auction in which the price of the offering is set after taking in all bids to determine the highest price at which the total offering can be sold?

14. In addition to the federal securities laws, each state has its own set of securities laws, commonly referred to as __________, which are designed to protect investors against fraudulent sales practices and activities.

15. Which of the following passes capital gains, dividends, and interest earned on fund investments directly to shareholders so that it is taxed only at the personal level, and double taxation is avoided?

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