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| Section | Weight | Objectives |
|---|---|---|
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Product-specific disclosures and regulatory requirements - Standards for advertising and public communications - Customer communication and solicitation rules |
| Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Account types and documentation requirements - Financial profile, risk tolerance, and investment objectives - Suitability rules and regulatory compliance |
| Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Debt securities and government obligations - Options and derivative products - Investment companies, ETFs, and variable annuities - Recordkeeping and regulatory reporting - Municipal securities - Margin accounts and taxation - Direct participation programs - Equity securities |
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Regulatory requirements for transaction processing - Order types and execution procedures - Trade settlement and confirmation rules |
Bubba has not existing positions in his account and writes 1 XYZ July 60 put and 1 XYZ July 60 call. What
is this position called?
Correct Answer: A 🗳️
Explanation: Only visible for Free4Torrent members. You can sign-up / login (it's free).
Bubba has a cash account and fails to make full and prompt payment for a purchase. The broker
liquidated the transaction. Two weeks later, Bubba places another buy order for 100 shares of XYZ. What
does the broker do?
Correct Answer: C 🗳️
Explanation: Only visible for Free4Torrent members. You can sign-up / login (it's free).
Bubba want to buy a CMO. In general, how often should he expect to receive interest payments?
Correct Answer: B 🗳️
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Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the
prices listed
1 00 ABC $30
2 00 XYZ $70
2 00 QBB $40
2 00 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
What is the buying power in Bubba's account?
Correct Answer: C 🗳️
Explanation: Only visible for Free4Torrent members. You can sign-up / login (it's free).
Which of the following municipal bonds may be grouped under the classification of "revenue bonds"?
Correct Answer: C 🗳️
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