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Question 1 of 10
1. Question
In order to avoid having to comply with the eligibility requirements of ERISA, non- qualified deferred compensation plans must remain –
Correct
In order to avoid having to comply with the eligibility requirements of ERISA, non- qualified deferred compensation plans must remain unfunded.
Incorrect
In order to avoid having to comply with the eligibility requirements of ERISA, non- qualified deferred compensation plans must remain unfunded.
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Question 2 of 10
2. Question
As stated in FINRA Rule 3240, borrowing from or lending to customers is prohibited unless:
I. The member maintains written procedures for such transactions.
II. The borrowing or lending arrangement is with a customer who is immediate family or with a customer who is a financial institution in the business of providing credit or loans.
III. The customer is a registered person with the same member firm
IV. The lending arrangement is based on a personal relationship with the customer.Correct
As stated in FINRA Rule 3240, borrowing from or lending to customers is prohibited unless:
1. The member maintains written procedures for such transactions
2. The borrowing or lending arrangement is with a customer who is immediate family or with a customer who is a financial institution in the business of providing credit or loans
3. The customer is a registered person with the same member firm
4. The lending arrangement is based on a personal relationship with the customerIncorrect
As stated in FINRA Rule 3240, borrowing from or lending to customers is prohibited unless:
1. The member maintains written procedures for such transactions
2. The borrowing or lending arrangement is with a customer who is immediate family or with a customer who is a financial institution in the business of providing credit or loans
3. The customer is a registered person with the same member firm
4. The lending arrangement is based on a personal relationship with the customer -
Question 3 of 10
3. Question
Asset-based sales charges may not exceed –
Correct
Asset-based sales charges may not exceed 0.75%.
Incorrect
Asset-based sales charges may not exceed 0.75%.
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Question 4 of 10
4. Question
For companies without an asset-based sales charge, the aggregate front- end and deferred sales charges may not exceed –
Correct
For companies without an asset-based sales charge, the aggregate front- end and deferred sales charges may not exceed 8.5% of the offering price.
Incorrect
For companies without an asset-based sales charge, the aggregate front- end and deferred sales charges may not exceed 8.5% of the offering price.
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Question 5 of 10
5. Question
For companies with an asset-based sales charge and which charge service fees, the maximum charge is –
Correct
For companies with an asset-based sales charge and which charge service fees, the maximum charge is 6.25% of the amount invested.
Incorrect
For companies with an asset-based sales charge and which charge service fees, the maximum charge is 6.25% of the amount invested.
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Question 6 of 10
6. Question
The Securities Act of 1933 defines an issuer as “every person who issues or proposes to issue any security.” Here “every person” refers to-
I. a joint-stock company
II. a trust
III. an individual
IV. unincorporated organizationCorrect
Please bear in mind that person is defined as “an individual, a corporation, a partnership, an association, a joint-stock company, a trust, any unincorporated organization, or a government or political subdivision thereof.”
Incorrect
Please bear in mind that person is defined as “an individual, a corporation, a partnership, an association, a joint-stock company, a trust, any unincorporated organization, or a government or political subdivision thereof.”
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Question 7 of 10
7. Question
Which of the following statement(s) is(are) not true about an underwriter?
I. An underwriter is any person who has purchased from an issuer with a view to, or offers or sells for an issuer with, the distribution of any security.
II. Underwriters are primarily utilized by issuers in the primary distribution of securities.
III. The role of the underwriter is to determine the initial pricing and to coordinate the sale and distribution of the security into the market.
IV. Underwriters are often involved in the preparation of the necessary SEC filings and approvals.Correct
The Securities Act of 1933 defines an underwriter as “any person who has purchased from an issuer with a view to, or offers or sells for an issuer with, the distribution of any security.” Underwriters are primarily utilized by issuers in the primary distribution of securities. The role of the underwriter is to determine the initial pricing and to coordinate the sale and distribution of the security into the market. Underwriters are often also involved in the preparation of the necessary SEC filings and approvals.
Incorrect
The Securities Act of 1933 defines an underwriter as “any person who has purchased from an issuer with a view to, or offers or sells for an issuer with, the distribution of any security.” Underwriters are primarily utilized by issuers in the primary distribution of securities. The role of the underwriter is to determine the initial pricing and to coordinate the sale and distribution of the security into the market. Underwriters are often also involved in the preparation of the necessary SEC filings and approvals.
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Question 8 of 10
8. Question
Which of the following statement(s) is(are) true about Securities and Exchange Commission (SEC)?
I. Their mission is to protect company, maintain fair, orderly, and efficient markets, and facilitate capital formation.
II. SEC plays a critical role in overseeing the inspection of securities firms, brokers, investment advisers, and ratings agencies as well as private regulatory organizations in the fields of securities, accounting, and auditing.
III. The SEC is responsible for coordinating the regulation of securities across the federal state and foreign regulatory bodies.
IV. The SEC is responsible for ensuring that market participants have adequate information with which to make informed investment decisions.Correct
Their mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
SEC plays a critical role in overseeing the inspection of securities firms, brokers, investment advisers, and ratings agencies as well as private regulatory organizations in the fields of securities, accounting, and auditing.
The SEC is also responsible for coordinating the regulation of securities across the federal state and foreign regulatory bodies.
The Securities and Exchange Commission (SEC) is responsible for ensuring that market participants have adequate information with which to make informed investment decisions.Incorrect
Their mission is to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.
SEC plays a critical role in overseeing the inspection of securities firms, brokers, investment advisers, and ratings agencies as well as private regulatory organizations in the fields of securities, accounting, and auditing.
The SEC is also responsible for coordinating the regulation of securities across the federal state and foreign regulatory bodies.
The Securities and Exchange Commission (SEC) is responsible for ensuring that market participants have adequate information with which to make informed investment decisions. -
Question 9 of 10
9. Question
The SEC is responsible for monitoring the market participants within the broad guidelines set forth in securities laws such as –
I. The Securities Act of 1933
II. The Securities Exchange Act of 1934
III. The Securities Act of 1934
IV. The Securities Exchange Act of 1933Correct
The SEC is responsible for monitoring these market participants within the broad guidelines set forth in securities laws such as the Securities Act of 1933 and the Securities Exchange Act of 1934.
Incorrect
The SEC is responsible for monitoring these market participants within the broad guidelines set forth in securities laws such as the Securities Act of 1933 and the Securities Exchange Act of 1934.
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Question 10 of 10
10. Question
As provided in the Investment Company Act of 1940, which of the following is(are) the principal classes of investment companies?
I. Face-amount certificate company
II. Unit investment trust
III. Management company
IV. Mutual-fund companyCorrect
The three principal classes of investment companies as provided in the Investment Company Act of 1940 are as follows:
1. Face-amount certificate company
2. Unit investment trust
3. Management companyIncorrect
The three principal classes of investment companies as provided in the Investment Company Act of 1940 are as follows:
1. Face-amount certificate company
2. Unit investment trust
3. Management company