FINRA advertising standards permit a dealer to state that a CMO has an implied AAA rating if the securities are issued:

• A.with an average life no longer than ten years
• B.by a US government agency
• C.by a private issuer who has not yet received an expected AAA rating
• D.in amounts less than $1,000,000

Comment: *

Name: *

Email: *

Verification: *

Bubba opens a margin account and sells short 100 shares of XYZ at $50. Assuming a Reg T requirement of 50%, what is the opening balance in Bubba's account?

• A.$10,000
• B.$7,500
• C.$5,000
• D.$2,500

Comment: *

Name: *

Email: *

Verification: *

Bubba is a registered representative who wishes to buy shares of a new issue his firm is distributing.
Under FINRA Conduct Rules, Bubba may:

• A.not do so under any circumstance
• B.do so if he has a history of buying hot issues
• C.not do so for his own account, buy may purchase shares for his sister's account
• D.do so if his allotment is insubstantial and not disproportionate to public orders

Comment: *

Name: *

Email: *

Verification: *

In the offering of new securities, members of the syndicate are permitted to sell to other dealers less the reallowance. The amount of the reallowance is determined by:

• A.the FINRA
• B.the issuing corporation
• C.the syndicate manager
• D.the SEC

Comment: *

Name: *

Email: *

Verification: *

To qualify as an intrastate offering under SEC Rule 147, which of the following is true of the issue?

• A.it must be approved by the SEC
• B.it must be sold only to bona fide residents of one state
• C.it cannot exceed $1,500,000 in value
• D.it must consist of common stock only

Comment: *

Name: *

Email: *

Verification: *