Series 7 Practice Questions

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Series 7 Practice Questions An investor tells his rr to purchase 50m EGG 11.7% debenture bonds. The order goes through and the bonds are purchased for 113. A year before the bond matures, it is valu... ed at 103. What is this called? - ANS - Amortization In oil and gas limited partnerships is the risk greater in developmental or exploratory programs? - ANS - exploratory What is the best way to measure the GNP? (gross national product) - ANS - constant dollars What is the broker's role in the term "broker/dealer"? - ANS - executing trades for client accounts What is the maximum federal tax rate for corporations on their dividends and other income? - ANS - 35% What is the maximum federal tax rate for individuals on their dividends and other income? - ANS - 20% What type of securities are exempt from registration under the Securities Act of 1933? - ANS - government agency issues Suppose a put is assigned to the writer. Under federal guidlines, the premium received by the writer of the put is treated in what manner? - ANS - It is subtracted from the cost basis when the writer is assigned How much income must a REIT generate from the real estate properties? - ANS - 75% How much must a REIT pass-through of its profits to investors? - ANS - 90% A portfolio manager of a pension fund desires income but wants to protect the porfolio. What option position would he make? - ANS - Write calls against the market index for income and protection. A rr should request an extension of time for an invest to pay for stock that he has purchased by the: - ANS - Fifth business day Self-employed people can contribute how much to thier Keogh? - ANS - The lesser of 100% of their income or $51,000 Your customer thinks that the stock is aobut to hit the resistance level and break through to the next level. She would like to take advantage of the situation. Whay type of ORDER would you suggest she place? - ANS - Buy Stop order When an investor buys a corporate bond, they h [Show More]

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