Online Access Free Series-7 Exam Questions

A leveraged company is best described as one that has a small portion of its capitalization represented by:

• A.common stock
• B.debentures
• C.preferred stock
• D.convertible bonds

Which of the following statements about mutual fund fees is accurate?

• A.the management group receives a fee based upon the amount of assets in the fund
• B.the custodian receives part of the management fee in addition to a fee for safekeeping of the fund's securities
• C.the sponsor receives a management fee for buying and selling the fund's portfolio securities
• D.the management group receives part of the sales charge in addition to a management fee

Under an initial federal requirement of 70% equity, Bubba purchases 100 shares of XYZ at $40 per share and wishes to satisfy the margin call by delivering another listed security into his account.
He may do so by depositing stocks with a market value of:

• A.$9,333
• B.4,000
• C.$2,800
• D.$5,714

In a competitive bidding for mortgage bonds of a large public utility the winning underwriter is determined by:

• A.the lowest net interest cost to the issuer
• B.the refunding and sinking fund terms in the indenture
• C.the shortest maturity date for the bonds
• D.the highest dollar amount paid to the issuer

Provisions of SEC Rule 145 normally apply to an exchange of one security for another as a result of:

• A.a change in par value
• B.a stock split
• C.a "no-sale" ruling issued by the SEC
• D.a merger