4th Set

Question 1

Fill or kill (FOK) means order must be executed _____

Answer 1

Immediately and in its entirety

Question 2

Margin requirement if your short stock that is currently trading at less than $5 / share,

Answer 2

If under $5/share, must maintain %100 SMV or $2.50/share. Whichever is GREATER

Question 3

Can SMA be used or withdrawn if account equity falls below maintenance?

Answer 3

No

Question 4

As interest rates in the market go up, the price of preferred stock goes ____

Answer 4

Down

As interest rates in the market go up, the price of preferred stock goes down.

Question 5

If an investor wants to shelter a portion of her income would an oil and gas drilling program or oil and gas income program provide her with significant write offs

Answer 5

The oil and gas drilling progeam would provide large write-offs
Oil and gas drilling programs pass through intangible drillings costs, which the partners may use to reduce passive income.

Question 6

Do eurodollar bonds have to be registered with the SEC?

Answer 6

No

Because the bonds are issued outside the US, no registering with SEC

Question 7

When do pass-through certificates from Government National Mortgage Association (GNMA) pay interest?

Answer 7

The pass through certificates pay principal and interest monthly

Question 8

Range of maturities for T Notes

Answer 8

2-10 years

Technically: 2,3,5,7,10

Question 9

Once a customer account has penny stocks, account statements must be sent every _____

Answer 9

1 month