4

Question 1

Maintaining the issuer’s ownership register for each issue of its securities is the responsibility of the `

Answer 1

registrar

Question 2

The investment banking department of a broker-dealer will NOT perform which of the following functions?

Answer 2

Make recommendations as to which companies investors should purchase or sell

Question 3

When executing an agency trade for a customer, a broker-dealer will earn:

Answer 3

a commission

Question 4

executing principal trades, a broker-dealer earns

Answer 4

markup or mark down

Question 5

According to FINRA, a person with assets of $80 million is considered:

Answer 5

a Institutional investor

Question 6

When used in reference to activities performed by a brokerage firm, the term “dealer” relates to which of the following?

Answer 6

Any person that buys a security from or sells a security to a customer from/for its own account

Question 7

In order to be defined as an accredited investor, a person must have:

Answer 7

A net worth of at least $1 million (excluding his primary residence) or at least $200,000 in gross annual income in each of the last two years

Question 8

which of the following is NOT defined as an accredited investor?

Answer 8

A person who has a current Series 79 registration

Question 9

Which of the following earns a fee based on the amount of assets it has under management?

Answer 9

and investment advisor

Question 10

Which of the following statements is NOT TRUE regarding corporate debt securities?

Answer 10

If the corporation has sufficient funds, it will pay the owners a cash dividend.