A) decreased.
B) increased.
C) not changed because only new bond prices are impacted by changes in interest rates not the price of bonds already trading in the secondary market.
D) not changed because bond prices are not affected by interest rates.
Answer: A)
A) so that it holds no more than 10% of the voting stock of any one company.
B) All of these.
C) at least 75% of its assets in securities other than its own.
D) no more than 5% of its assets in any one target company.
Answer: B)
I. spread widens.
II. spread narrows.
III. option expires.
IV. options are exercised.
Answer: I and IV
A) a tax-free capital gain.
B) a short-term capital gain.
C) ordinary income.
D) a long-term capital gain.
Answer: B)
A) YTC.
B) both the YTM and YTC.
C) YTM.
D) either the YTM or YTC.
Answer: C)
A) credited by $2,500.
B) credited by $5,000.
C) debited by $2,500.
D) debited by $5,000.
Answer: A)
A) diversifying holdings.
B) speculating for profit on the rise in price of stock.
C) hedging a long stock position against falling prices.
D) delaying a decision to buy stock.
Answer: C)
I. required beginning date (RBD)
II. required minimum distribution (RMD)
III. lock-up provisions
IV. vesting
Answer: I and II
A) None of these..
B) He has given up the right to vote.
C) His proxy will be voted as recommended by management.
D) He has transferred the power to specify a vote to your firm.
Answer: C)
A) The dated date of the issue.
B) The maturity of the issue.
C) The size of the block offered.
D) The rating of the issue.
Answer: A)
A) It increases.
B) It is halted.
C) It is restricted to closing transactions.
D) It continues to trade.
Answer: B)
A) Contributions of $2,000 per child per year are allowed.
B) Contributions are tax deductible, subject to a modified AGI phaseout.
C) Contributions can be made to this type of plan and a Section 529 plan in the same year for the same beneficiary.
D) The funds grow income tax deferred and, if used for elementary, secondary, or college educational expenses, the earnings are tax free.
Answer: B)
A) markups.
B) markdowns.
C) spreads in new stock offerings.
D) commissions.
Answer: C)
A) It depends on the disposition of the short Oct 60 put.
B) It is treated as ordinary income or loss.
C) It cannot be determined from the information given.
D) It is treated as a capital gain or loss.
Answer: D)
A) promise a specific number of shares.
B) accept an order.
C) perform a private transaction for a customer.
D) accept an indication of interest.
Answer: D)
I. traded on exchanges in round lots
II. redeemable by the issuer, just as mutual funds shares are redeemable by an investment company
III. investments that will distribute the cash dividends of the companies held in the portfolio directly to the investor
IV. investments that allow no flexibility in managing the tax consequences related to holding shares of the companies within the portfolio
Answer: I and III
I. Nominal yield is higher than YTM.
II. Current yield is higher than nominal yield.
III. Nominal yield is lower than YTM.
IV. Current yield is lower than nominal yield.
Answer: II and III
A) required to have been in the position with the employing firm at least one year when previously employed in a clerical capacity only.
B) required to serve a 60-day apprenticeship and having fulfilled that time may be promoted to sales training.
C) required to serve a 30-day apprenticeship and may not yet be promoted to sales training.
D) not required to serve an apprenticeship period and may be promoted for sales training.
Answer: D)
A) the rate charged by the largest bank.
B) the daily average rate charged by banks.
C) the lowest rate charged by any bank.
D) the highest rate charged by any bank.
Answer: B)
A) It is underwriting securities in the primary market.
B) It is acting as a broker for customers.
C) It is trading for its own account.
D) It is violating NYSE rules.
Answer: C)