FINRA Security Industry Essentials Practice Test 40

1. Rob owns 200 shares of Epsilon stock, which recently announced that it will pay a 4% stock dividend. How many shares will Rob have after the dividend has been paid?

2. All but which of the following are correct regarding stock market benchmarks and indexes?

3. Which of the following is an unconditional contract between a bond issuer and a bondholder that specifies the terms of the bond?

4. Which of the following is/are correct regarding the capital structure of open-end mutual funds?

(1) Open-end mutual funds issue new shares and redeem existing shares from shareholders.

(2) The price an investor pays when buying shares of an open-end mutual fund is based on supply and demand.

5. Which of the following refers to using property to secure payment of a loan, which includes mortgages, pledges, and putting up collateral, but the borrower retains possession?

6. Which of the following is correct regarding Coverdell Education Savings Accounts (ESAs)?

7. The standard expiration period for a put or call option is __________. Long-term equity anticipation securities (LEAPS) have an expiration period __________.

8. A large interest rate change has the most significant effect on a __________ bond.

9. All but which of the following are correct regarding the Federal Reserve?

10. A mutual fund that invests in securities both inside and outside the U.S. is known as which of the following?

11. Which of the following is correct regarding the taxation of TIPS?

12. In 2017, the SEC adopted an amendment to the Settlement Cycle Rule under the Securities Exchange Act of 1934 that changed the standard settlement cycle for most broker-dealer transactions in which of the following ways?

13. Which of the following are permitted investments in an IRA?

(1) Real estate

(2) Money market funds

(3) Common stock

(4) Bond funds

14. Which of the following is/are correct regarding stock splits and reverse stock splits?

(1) A 3-for-1 stock split will decrease a stock's market price per share.

(2) A reverse stock split is intended to increase a stock's market price per share.

15. Which of the following describes the relationship between total risk, systematic risk, and unsystematic risk?

All content of site and practice tests © 2022 Jack.
Quick View

FINRA Practice Tests