Online Access Free Series-7 Practice Test

Which of the following registered investment companies normally sells with an appropriate commission added to the contract price?

• A.a unit investment trust
• B.a closed-end investment company
• C.a face-amount certificate company
• D.an open-end investment company

Assuming all of the following bonds from the same issuer are callable now, which one would most likely get called first?

• A.4% maturing 1-15-2012
• B.4% maturing 1-15-2007
• C.8% maturing 1-15-2007
• D.8% maturing 1-15-2016

Under the terms of the 1970 Securities Investor Protection Act, what is the status of a customer whose account assets exceed SIPC insurance coverage when his broker/dealer becomes insolvent?

• A.SIPC will issue a debenture to guarantee eventual repayment of the deficiency
• B.the US Treasury is pledged to make up the deficiency
• C.all broker/dealers are assessed to fully satisfy the deficiency
• D.the customer becomes a general creditor of the insolvent firm for the amount of deficiency

Bubba and his wife, Bubbette, maintain a joint account with a brokerage firm as "joint tenants in common". Bubbette calls a registered representative at the brokerage and places an order to sell 100 shares of XYZ, which is long in the account.
Which of the following statements is correct about this order?

• A.the order may not be accepted
• B.it must be approved by an officer of the brokerage prior to entry
• C.it may be entered
• D.it may be entered only after confirming with Bubba

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

• A.when the new issue of securities is purchased pursuant to a stand-by agreement
• B.to purchase securities to avoid dilution
• C.when the new issue of securities is purchased pursuant to a best effort basis
• D.when the transaction is exempt by an order of the FINRA