Online Access Free Series-7 Practice Test

Bubba buys 100 shares of XYZ stock at $40 per share and sells a listed July XYZ call at 45 for a $2 premium.
What is his loss potential?

• A.$4,200
• B.$4,000
• C.$4,500
• D.$3,800

Which of the following does not affect the public offering price of a new issue?

• A.the book value of the issuer
• B.dividend projections for the next year
• C.anticipated earnings of the issuer in the next year
• D.the selling group's determination of value in the prevailing market conditions

A registered representative just accepted Bubba's instructions to buy a specific stock in the over-the-counter market with the credit balance in his account.
Which of these orders for that issue can be entered and executed on a single ticket in a typical broker/dealer organization?

• A.buy 150 XYZ at 17.50 or better
• B.all of these
• C.buy 150 XYZ at market
• D.buy $2,500 worth of a mutual fund XYZ Corporation

The cost of maintaining an investment in a mutual fund is best reflected in the:

• A.custodial fee
• B.net investment income
• C.expense ratio
• D.sales charge

How much money is a concession of 3/8 worth for one municipal bond?

• A.$375.00
• B.$0.375
• C.$37.50
• D.$3.75