QUESTION NO: 1
A plan under which employees of state and local governments can contribute part of their salaries such
that those earnings will grow tax-deferred until retirement is called a:
A plan under which employees of state and local governments can contribute part of their salaries such
that those earnings will grow tax-deferred until retirement is called a:
Correct Answer: A
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QUESTION NO: 2
Ralph has a traditional IRA from which he has yet to make any withdrawals. Ralph will be turning 70 1/2 in
June, 2011.According to the required minimum distribution rule associated with traditional IRAs, Ralph is
required to start withdrawing funds from this account:
Ralph has a traditional IRA from which he has yet to make any withdrawals. Ralph will be turning 70 1/2 in
June, 2011.According to the required minimum distribution rule associated with traditional IRAs, Ralph is
required to start withdrawing funds from this account:
Correct Answer: C
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QUESTION NO: 3
Giant Investments mass mails a single-page, glossy flyer that lists the types of mutual funds it offers,
along with a general explanation of what the investment objective of each type of fund is. The flyer also
prominently provides Giant's contact information. Given these facts:
Giant Investments mass mails a single-page, glossy flyer that lists the types of mutual funds it offers,
along with a general explanation of what the investment objective of each type of fund is. The flyer also
prominently provides Giant's contact information. Given these facts:
Correct Answer: B
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QUESTION NO: 4
Which of the following activities are permitted during the "cooling off" period associated with a new
offering?
I. A preliminary prospectus may be provided to prospective investors.
II. The security can be registered in any states in which it will be sold.
III. The management of the issuing firm may give interviews in which they discuss the market for their
products and future revenue expectations.
IV. The underwriter of the issue may run a tombstone advertisement in the Wall Street Journal to
announce the upcoming offering.
Which of the following activities are permitted during the "cooling off" period associated with a new
offering?
I. A preliminary prospectus may be provided to prospective investors.
II. The security can be registered in any states in which it will be sold.
III. The management of the issuing firm may give interviews in which they discuss the market for their
products and future revenue expectations.
IV. The underwriter of the issue may run a tombstone advertisement in the Wall Street Journal to
announce the upcoming offering.
Correct Answer: B
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QUESTION NO: 5
The stock of Nutrisystem, Inc. (NTRI) is selling for $17.70 when Miss Piggy places a limit order to buy the
stock at $17.65. During the period the order is open, NTRI falls to $17.60 and then increases to
$ 17.67.Which of the following statements is most likely to be true in this scenario?
The stock of Nutrisystem, Inc. (NTRI) is selling for $17.70 when Miss Piggy places a limit order to buy the
stock at $17.65. During the period the order is open, NTRI falls to $17.60 and then increases to
$ 17.67.Which of the following statements is most likely to be true in this scenario?
Correct Answer: C
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QUESTION NO: 6
Which of the following stock funds would you expect to be the least risky?
Which of the following stock funds would you expect to be the least risky?
Correct Answer: B
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QUESTION NO: 7
Which of the following pieces of information may not be contained in a tombstone advertisement under
SEC rules?
Which of the following pieces of information may not be contained in a tombstone advertisement under
SEC rules?
Correct Answer: B
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QUESTION NO: 8
Which of the following is true about a hedge fund?
Which of the following is true about a hedge fund?
Correct Answer: C
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QUESTION NO: 9
Jack purchased a new bond of the Candlestick Corporation for its face value of $1,000.The bond has a
coupon rate of 3.5%, makes semiannual interest payments, and matures in fifteen years. A year after
purchasing the bond, Jack needs to sell the bond to offset some major expenses he incurred when his
home caught on fire. Interest rates in the economy at this time have fallen to 3.0%.Given this scenario,
when Jack sells the bond, he can expect to receive which of the following?
Jack purchased a new bond of the Candlestick Corporation for its face value of $1,000.The bond has a
coupon rate of 3.5%, makes semiannual interest payments, and matures in fifteen years. A year after
purchasing the bond, Jack needs to sell the bond to offset some major expenses he incurred when his
home caught on fire. Interest rates in the economy at this time have fallen to 3.0%.Given this scenario,
when Jack sells the bond, he can expect to receive which of the following?
Correct Answer: B
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QUESTION NO: 10
The totalreturn reported by a mutual fund:
The totalreturn reported by a mutual fund:
Correct Answer: C
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QUESTION NO: 11
Cliff places an order to sell 500 shares of the stock of Gap, Inc. (GPS) via his broker's website. Cliff does
not currently own any shares of GPS. This order is:
Cliff places an order to sell 500 shares of the stock of Gap, Inc. (GPS) via his broker's website. Cliff does
not currently own any shares of GPS. This order is:
Correct Answer: D
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