FINRA SIE Exam Practice Test 7

1. A ________________ refers to when a company first sells it shares to the public.

2. The SEC was created under _____________.

3. Which of the following financial information is not required on a new account application?

4. The length of time an investor plans to keep an investment is known as the ___________.

5. Which of the following investments would not be appropriate for an investor with a capital growth objective?

6. Investing in multiple investment vehicles within a portfolio to reduce risk or increase returns is called _______________.

7. ____________ risk refers to the impact that bad management decisions, other internal missteps, or external situations can have on a company's performance and on the value of investments in that company.

8. Under Regulation T, what is the maximum amount of the total purchase price of a stock for new purchases that a firm can lend a customer?

9. How often must firms notify employees of their business continuity or disaster recovery plans?

10. Which of the following investments would be most suitable for an investor in a high tax bracket who wants to avoid paying any taxes on his investments?

11. What is margin in a brokerage account?

12. At what age does a UTMA account terminate?

13. _______________ trading authority is when a person other than the account holder may invest without consulting the account holder about the price, amount, or type of security or the timing of the trades that are placed for the account.

14. Which of the following would be a red flag when opening an account for a new client?

15. Dividing a larger transaction into smaller transactions to avoid triggering a reporting or recordkeeping requirement is called ___________.

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