Bubba maintains an individual cash account as well as a joint account with his wife, Bubbette. While Bubba is out of town on a fishing trip, Bubbette calls the brokerage firm with an order to buy 100 shares of Great Company, Inc., at the market value for Bubba individual account. It is a stock Bubba has previously informed the brokerage he wanted to buy at the "right price".
What does the brokerage do?

• A.refuse to accept the order unless Bubba has provided a signed trading authorization in favor of Bubbette
• B.execute the order as requested
• C.enter the order only after receipt of written instructions to do so from Bubba
• D.buy the stock in the joint account and, after verification from Bubba, journal the security to his individual account

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A group net order is one that benefits municipal syndicate members:

• A.equally
• B.according to their percentage participation in the account
• C.according to the number of designated orders they've received
• D.according to the number of presale orders they've received

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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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XYZ Corporation earned $2 per share last year and is selling at $20 per share. If it earns $3 per share this year and its price/earnings ratio stays the same, its price will be:

• A.$20
• B.$25
• C.$30
• D.$60

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In a securities underwriting a participating firm is said to be liable severally but not jointly.
What is this type of underwriting is called?

• A.a Western account
• B.an Eastern account
• C.a best efforts offering
• D.an all or none offering

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