Online Access Free Series7 Practice Test

Bubba decides to buy equity securities. Which of the following statements is always true about what
Bubba is buying?

• A.they are not secured by collateral
• B.they are readily marketable
• C.they have a fixed rate of return
• D.they have a fixed maturity date

Bubba buys "double-barreled" municipal bonds. What is the source of guaranteed repayment on these
bonds?

• A.two specific municipal projects
• B.one specific municipal project plus the full financial strength of the issuer
• C.a specific municipal project plus a federal subsidy
• D.all projects of the issuing municipality

The registration requirements of the federal securities acts are intended to protect the public interest by
providing for a prospectus on new issues and its review by the SEC. Which of the following is the true of
this process?

• A.It does not imply SEC approval of the issue
• B.It relieves participating underwriters from any further responsibility for checking essential facts before
  recommending purchase to the customers
• C.It guarantees purchasers against an untrue statement of material fact or an omission of material fact
• D.It provides the SEC with adequate information on which to base approval for new issues

Bubba is opening a margin account with a member organization. He wishes to purchase 100 shares of
XYZ at $15 per share. What is Bubba's initial cash deposit?

• A.$1,500
• B.$375
• C.$1,050
• D.$2,000

Which of the following situations is possible for a writer of a covered call option?

• A.depositing margin into his account
• B.buying the underlying stock if the call is exercised
• C.selling the security he already owns
• D.purchasing a put option to hedge against unlimited loss potential