Conduct and Practices Handbook Course (CPH) Quiz 43

Which service(s) is (are) used to facilitate automated trade reporting and reconciliation, specifically for trades which are not made on an exchange?

I. Electronic Municipal Market Access
II. Trade Reporting Facility
III. MIG-1 ratings
IV. Corporate profits

Which of the following is an online source of information for municipal bonds?

I. MIG-1 ratings
II. Corporate profits
III. Investment risk
IV. Electronic Municipal Market Access

Which of the following statement is true for Call risk?

I. Risk of causing the bondholder to lose the stream of interest payments left until maturity
II. Risk of losing all the capital one has invested, particularly for options and warrants.
III. Risk for a creditor that principal and interest on a loan.
IV. Risk that investments will be harmed through changes in currency exchange rates.

The risk of losing all the capital one has invested, particularly for options and warrants is known as:

I. Credit risk
II. Currency risk
III. Capital risk
IV. Inflationary risk

Which of the following statement is false for Interest rate risk?

I. Risk that investments will be harmed through fluctuations in interest rates.
II. Risk that an investor will not be able to liquidate his assets when he wishes
III. Risk particularly affects bond and mortgage holders.
IV. Risk intrinsic to the market taken as a whole or to a market segment.

Which of the following risk refers to the investments that could be harmed through some political events or unrest, whether domestically or abroad:

I. Prepayment risk
II. Prepayment risk
III. Political or legislative risk
IV. Systematic market risk

If an investor makes some transaction at the wrong, failing to minimize his losses or maximize his gains then the risk is termed as:

I. Reinvestment risk
II. Prepayment risk
III. Inflationary risk
IV. Timing risk

The portion of the company’s profit that is returned to shareholders refers to which of the following:

I. Dividend
II. Interest
III. Capital gain
IV. Capital loss

Which type of bond(s) provide tax-exempted interest:

I. Corporate Bonds
II. Municipal bonds
III. Convertible Bonds
IV. Term Bonds

These documents are disclosures provided by issuers of securities providing specific and detailed financial information concerning both the issuer and the offering itself?

I. Red herrings
II. Prospectuses
III. Material events
IV. Offering documents

The Federal Deposit Insurance Corporation (FDIC) is a corporation of the U.S. federal government was established under the act of:

I. Glass-Steagall Act of 1933.
II. Glass-Steagall Act of 1934.
III. Glass-Steagall Act of 1936
IV. Glass-Steagall Act of 1940

Which of the following term refers to the prices dealers (or others) are willing to pay for particular security:

I. Asks
II. Firm quotes
III. Bids
IV. Subject offers

Which of the following term refers to the prices dealers (or others) are willing to sell a particular security:

I. Bids
II. Asks
III. Subject offers
IV. Firm quotes

Which of the following are the types of orders?

I. Buy orders
II. Short selling orders
III. Market orders
IV. Sell orders

Which of the following term refers to the order where the investor does not own a security, done with the assumption that the share can be purchased back at a lower price:

I. Stop orders
II. Market orders
III. Sell orders
IV. Limit orders

Which of the following order has no restrictions on the price on buying or selling a stock:

I. Stop orders
II. Market orders
III. Sell orders
IV. Order ticket

An order ticket must include which of the following:

I. account number of the client
II. The execution price
III. The representative’s ID number
IV. Orders to purchase or sell a security

Which of the following thing(s) is(are) included in Customer confirmations?

I. The account number of the customer
II. The trade date
III. The CUSIP ID number
IV. The commission total

Which of the following bonds are not registered to particular individuals, but are as tradable and liquid as dollar bills, must be delivered with all the related unpaid coupons?

I. Bearer bonds
II. Registered bonds
III. Due bills
IV. Security certificate

Which of the following term refers to the orders to buy or sell a security which will lose validity (expire) if the transaction is not made within the same day?

I. At-the-open orders
II. Fill or kill orders
III. Day orders
IV. GTC orders

When the client tells the broker that the broker must immediately fill the entire order at the price the client is looking for is known as:

I. GTC orders
II. Market-on-close orders
III. Fill or kill orders
IV. At-the-open orders

Which of the following statement(s) refer to the primary responsibility of Securities and Exchange Commission (SEC):

I. The regulation of the securities industry
II. Stock and Options exchanges
III. Governs securities trading
IV. Investment banking firms

A self-regulatory organization (SRO) tasked with developing rules for banks and securities firms to follow whenever they underwrite, sell, purchase, or recommend municipal securities is known as:

I. Chicago Board Options Exchange (CBOE)
II. Securities and Exchange Commission (SEC)
III. Financial Industry Regulatory Authority (FINRA)
IV. Municipal Securities Rulemaking Board (MSRB)

Which of the following is the largest options exchange in the United States—but also a self-regulatory organization (SRO)?

I. Securities and Exchange Commission (SEC)
II. Municipal Securities Rulemaking Board (MSRB)
III. Chicago Board Options Exchange (CBOE)
IV. District Business Conduct Committee (DBCC)

Which of the following statements refer to the functions of capital markets?

I. They mobilize savings into profitable investments.
II. They encourage savings in the first place
III. They increase economic growth
IV. They Underwrite the issue of the securities.

The institutions (broker-dealers, particularly) which help issuers of securities to raise money for themselves is also known as:

I. capital markets
II. Money market
III. Selling groups
IV. Business continuity

The Securities Act of 1933 can also be called as:

I. Truth in Securities Act
II. The Paper Act
III. The Prospectus Act
IV. The New Issues Act

Which of the following information is required in registration statement?

I. issuer’s name
II. Description of issuer’s business
III. The company’s capitalization
IV. Truthfully disclose information for the new issue of securities

Which of the following is not included in the exempt securities?

I. Municipal (local government) bonds
II. Fixed annuities and insurance policies
III. Public utility securities
IV. The company’s complete financial statements

Which of the following rule refers to the SEC rule governing the sale of restricted, unregistered, and control securities:

I. Rule 144
II. Rule 145
III. Rule 146
IV. Rule 147