Bubba sells 100 shares of XYZ short at $58 and buys 1 XYZ Mar 60 Call at $3.
What is the customer's maximum loss?

• A.$500
• B.$100
• C.unlimited
• D.$5,500

Comment: *

Name: *

Email: *

Verification: *

On which of the following is depreciation permitted?

• A.rental property whose value is declining
• B.residential property not used for business
• C.property whose maintenance exceeds the investment credit
• D.equipment subject to recapture

Comment: *

Name: *

Email: *

Verification: *

The Bubba Fund is a load mutual fund that offers a reinvestment plan.
What does this mean?

• A.purchasers of fund shares must agree to make regular investments over a period of years
• B.income, dividend, and capital gain distributions may be automatically used to purchase new shares of the fund
• C.holders of fund shares are permitted to regularly purchase additional shares at the bid price
• D.no federal income taxes are paid on dividends and capital gain distributions from the fund

Comment: *

Name: *

Email: *

Verification: *

Bubba buys an OTC stock from a firm that is a market -maker in the stock.
What may be said about the price he pays?

• A.it does not include a markup
• B.it includes a markup
• C.it includes a commission and a markup
• D.it includes a special fee

Comment: *

Name: *

Email: *

Verification: *

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

Comment: *

Name: *

Email: *

Verification: *