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 valued at 103. What is
...
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 valued 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
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