An employer profit sharing plan may be described as:

• A.an income tax deduction
• B.a retirement plan
• C.a tax deferral plan
• D.all of the above

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Bubba's margin account has $1,000 of SMA,. If he buys $20,000 of listed secu rities, how much fully paid margin stock must he deposit to respond to a Reg T requirement of 50%?

• A.$20,000
• B.$9,000
• C.10,000
• D.$18,000

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In mid-September, Bubba sells one XYZ February 50 call at $6. It subsequently expires without being exercised.
How is the premium taxed?

• A.Bubba's cost of the underlying stock is reduced
• B.the $600 premium is a capital gain
• C.the $600 premium constitutes ordinary income
• D.the $600 premium is rolled over into another XYZ call with the next longest expiration date

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Which of the following is not usually an additional function of a mutual fund's custodial bank?

• A.transfer agent
• B.investment advisor
• C.registrar
• D.dividend disbursing agent

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Convertible preferred stock has all of the following characteristics except:

• A.a lower dividend rate than non-convertible preferred
• B.a dilution of earnings if converted into common stock
• C.a requirement for shareholders to always accept the call price when called
• D.required dividend payments to shareholders before any dividends are paid to holders of common stock

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