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NEW QUESTION 49
Bubba has been classified as a restricted person according to Rule 2790. He may purchase equity securities of an IPO except:

A. to purchase securities to avoid dilutionB. when the new issue of securities is purchased pursuant to a best effort basisC. when the new issue of securities is purchased pursuant to a stand-by agreementD. when the transaction is exempt by an order of the FINRA

Answer: B

Explanation:
when the new issue of securities is purchased pursuant to a best effort basis. All the other choices are allowable under the rule "except" this one.

 

NEW QUESTION 50
Bubba is buying a Federal Home Loan Bank issue that is offered at 95.22.
How much will he pay to purchase one bond?

A. $952.20B. $951.63C. $956.88D. $95.22

Answer: C

Explanation:
Explanation/Reference:
Explanation: $956.88. The price of 95.22 means 95 and 22 / 32. One thirty-second of a $1,000 bond with a par of 100.00 is $0.3125. Twenty-two thirty-seconds is therefore about $6.88. The 95 is the percentage of one bond with a par value of $1,000. Multiplying 95% by $1,000 equals $950. Adding $6.88 plus $950 equals $956.88.

 

NEW QUESTION 51
Bubba opens a margin account and sells short 100 shares of XYZ at $50. Assuming a Reg T requirement of 50%, what is the opening balance in Bubba's account?

A. $5,000B. $7,500C. $10,000D. $2,500

Answer: B

Explanation:
Explanation/Reference:
Explanation: $7,500. The short sale transaction is $5,000. The Reg T required deposit is $2,500 ($5,000 x
50%). Adding both results in $7,500.

 

NEW QUESTION 52
All sales literature and advertising relating to investment company shares prepared by members of FINRA must be filed for review with which of the following?

A. SECB. Federal Reserve BoardC. FINRAD. Anti-Trust Division of the Justice Department

Answer: C

Explanation:
Explanation/Reference:
Explanation: FINRA. Sales literature regarding investment company shares must be filed with FINRA within three days after the first use.

 

NEW QUESTION 53
......

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