FINRA Series-7 Dumps

trademarks. Intangible assets are those whose true value cannot be determined, but there is some supposed market value.

their shares are traded at prices determined in the open market. The other choices describe open-end investment companies.

common stock. Leverage refers to the existence of securities that are senior to common stock. There can be debt leverage and equity leverage.

a broker/dealer firm. A broker/dealer cannot use Rule 144 when selling stock.

closed-end funds. Mutual funds are purchased at NAV (when no-load) or NAV plus a sales charge. The pricing of closed-end funds is determined by market activity and has no direct link to NAV.

by a US government agency. Since government agencies do not apply for ratings, it is permissible to state that its issues have an “implied AAA rating”. Private issuers must receive a rating in order to state it in advertising.

one hundred shares of MST traded on the exchange and appears out of order on the tape.

The ticker symbol followed by “SLD” means that the print is out of sequence.

purchase any IPO security provided the plan is not sponsored solely by a broker/dealer. An ERISA plan that is qualified under Section 401(a) may purchase any IPO security provided that the plan sponsor is not a broker/dealer.

to be executed at a specific price or better. Choice A is only a buy limit order and choice B is only a sell limit order. Choice C is the correct definition of a “limit order”.

Regulation U. Regulation T is the extension of credit by broker/dealers. Reg U relates to the extension of credit by banks on securities.

a legal authority created for this purpose. Bonds with a leaseback arrangement are issued by a specially created entity.

$3.75. Three-eighths of a $1,000 bond with a par price of 100.00 equals $3.75.

appreciation. That’s the correct term for increase in value.

up to but not including the settlement date. Accrued bond interest is always calculated up to but not including the settlement date. The interest accrual begins on the coupon date.

rate of return. Because T-bills pay no interest, Bubba’s rate of return is the discount as a percentage of the face value he receives at maturity.

that the stated yield is an estimate that may vary passed upon prepayments and market factors. The only guarantee is that nothing is guaranteed, especially the yield.

this statement constituted a form of fraud prohibited under the Securities Exchange Act of 1934. Such statements are fraudulent when rendered even if future events result in their accuracy.

all of the above. A profit sharing plan has tax deductible contributions and is designed to provide a retirement plan for participants. Income in the plan is tax-free until withdrawn.

a copy of the underwriting agreement. The underwriting agreement is “not” in the final prospectus. This is a contract between the issuer and the underwriting syndicate.

the custodian can also be the transfer agent. This has become increasingly common. None of the other choices are correct.

income from extraordinary sources. Single events, such as the sale of property, do not affect basis.

the $600 premium is capital gain. That’s simply how the tax law works.

income reported but not received. Reportable income that is not distributable includes loan forgiveness.

all of the above. A transaction that is simultaneous and thus riskless calls for a smaller than usual markup under FINRA guidelines.

a processing fee. Many custodian banks charge the custodian fee to the mutual fund rather than the individual shareholder.

8% maturing 1-15-2016. Bonds with the highest coupon rates would be the first to most likely get called. The issuer will look to issue new debt at a lower rate. Since there are two 8% bonds, the one that would most likely get called are those with the longest maturity.

money laundering. Potential money laundering activities include excessive wiring of money between accounts.

predictions of recession in the economy. All of the other choices are technical market indicators. An economic forecast is “fundamental” market data.

fill or kill. Fill or kill is an order qualifier. It requests immediate execution of the whole order or immediate cancellation. A best efforts underwriting, frequently linked to all or none, is usually seen on small new issues. A standby underwriting is utilized to guarantee the success of a rights offering.

stay the same. The SMA does not decline as the market value declines.

Securities Investor Protection Act of 1970. SIPC was established under this act.

a contractual plan. The other choices are not suitable. In a voluntary accumulation plan, the load is level. In an automatic withdrawal plan, the load is front -end because the bulk of the sales charge is taken early in the life of the plan.

$28,000. The equity is the market value plus the credit balance.

a normally higher yield than non-convertible bonds of the same issuer. Remember that the question says “except” for this feature. Convertible bonds normally do NOT have a higher yield than non-convertible bonds of the same issuer. Convertibles usually have a lower yield than non -convertible sisters.

premium. The price of closed-end investment companies is determined by trading of their shares in the open market. The price may be a discount to net asset value or a “premium” above net asset value.

10. If a customer fails to deliver securities within ten days after settlement, the broker must repurchase the securities.

firm quotations. All Level III quotations are firm.

may be levied only if the charge if fair, reasonable, and non-discriminatory. This is the standard in the FINRA rules.

$6,600. The NYSE maintenance requirement on short margin accounts is 30%. Multiplying the short market value of $22,000 by 30% equals $6,600.

general obligation. A limited tax bond is generally classified as general obligation.

deductions from gross income to offset lower value of equipment. The cost of equipment is deducted from gross income over the life of the equipment, as its value declines.

interest is tax exempt, but the capital gain is taxable. This happens because Bubba purchased the bond in the secondary market with a different price than the original issue face amount.

US treasury notes. Savings bank deposits have no risk. The short duration of treasury bills and certificates embodies less market risk than longer-term treasury notes.

White’s. White’s ratings are based on trading market data as opposed to the financial data of the issue, which is used by Moody’s as well as S&P.

all of the above are required. An intrastate offering under Rule 147 requires qualification under all of these conditions.

120%. The toll facility usually sets rates to cover 120% of maintenance and debt service.

gift tax. By definition, gift tax is a progressive tax. All of the others are a level percentage.

$9,000. Since the required cash to deposit is $4,500 and Reg T is 50%, Bubba may deposit $9,000 of securities.

both B and C. The size of tax deductions is not a “primary” consideration.

$2,000. Bubba started with $6,000 of equity and a debit balance of $4,000. The market value of his XYZ stock increased by $5,000 ($15,000 - $10,000). Therefore, his equity increased to $11,000. Since Bubba only needs 60% equity, his Reg T requirement is $9,000 ($15,000 x 60%). His equity exceeds the requirement by $2,000.

a closed-end investment company. An open-end investment company may have a sales charge but not a commission.

the specific bid and offering terms of the issue. The bid and offering terms are determined after the syndicate letter to underwriters.

when the new issue of securities is purchased pursuant to a best effort basis. All the other choices are allowable under the rule “except” this one.

provide for disclosure of information about new securities offerings. The 1933 act is primarily concerned with registration and disclosures relating to new securities.

interstate mail fraud in securities offerings. Blue Sky laws are state security laws and do not cover interstate regulations.

Federal Reserve Banks. Debt securities are not issued by Federal Reserve Banks. All of the other entities do issue debt securities.

special tax. The other categories are not revenue bonds. Special tax is the only type that fits the general grouping.

best efforts. A best efforts deal least likely for a municipal securities offering. It is most often associated with small corporate stock or limited partnership offerings. Municipal securities are usually competitive bid or negotiated. Both of these types are firm commitment.

semi-annually. Investment companies are required to issue financial report semi-annually. Many do so more frequently.

they are not secured by collateral. Equity is ownership, which has no collateral security…or any other kind of security such as a guaranteed return, maturity, or marketability.