The preferred stock of Greatest Technology Corporation has a $100 par and is convertible into four shares of common stock. The preferred is trading at 104.50. The preferred is callable at 101. If the common stock price is presently 27.89, which of the following actions would be a successful arbitrage:

• A.purchase 400 shares of common stock and sell 100 shares of preferred stock as "short exempt" (that is, the sale is exempt from the uptick rule)
• B.purchase the preferred stock and sell an appropriate amount of the common stock "short exempt"
• C.purchase both the common and the preferred stocks as a hedge against further market risk
• D.purchase the preferred stock and let it be called, which is inevitable at these market prices

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How much money is a concession of 3/8 worth for one municipal bond?

• A.$0.375
• B.$3.75
• C.$37.50
• D.$375.00

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If a customer dies, the registered representative is required to:

• A.cancel all open (good 'til cancelled) orders
• B.await instructions and necessary papers from the executor of the estate
• C.sell out the account
• D.both A and B

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Which of the following organizations usually has a prominent role in guiding investment policies of mutual funds?

• A.the plan company
• B.the management group
• C.the custodian bank
• D.the underwriter

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Who obtains and pays the municipal bond attorney rendering a legal opinion about the validity of the bond issue?

• A.the purchaser of the bonds
• B.the underwriter
• C.the issuing municipality
• D.the municipality's financial adviser

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