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A registered representative (RR) opens a new account for a customer whose investment objectives are growth and income. She makes an initial deposit of $5,500 using a series of money orders drawn from different sources, and she makes no investments for the first 30 days the account is open. At the end of that time, the customer asks to have the funds wired to an account at a different firm as her needs have changed. The RR's first course of action should be to:
Which of the following responses describes a common feature of a hedge fund?
Which of the following is considered nonpublic information?
Under which of the following circumstances, if any, is it permissible for an individual without a Power of Attorney (POA) to sign a customer's name on their behalf?
When exercised, an option written on which of the following items must be settled in cash?
If an investor is bullish on ABC, which of the following actions will he most likely take?
Assuming yields are held constant, which of the following statements describes what will occur as a discount bond reaches maturity?
Which of the following statements is true regarding the ownership of investment company shares held as tenants in common?
Which of the following statements is true regarding the difference in treatment between common stock and preferred stock?
A customer purchased $80,000 of Fund XYZ two years ago. He now wants to buy $50,000 of Fund LMN offered within the same fund family, which offers a $100,000 breakpoint under right of accumulation. Which of the following statements is true?
The financial risk that a given security is not readily tradable in the market without impacting the market price is known as:
A customer owns 100 shares of ABC with a current market value of $5.00 per share. The company undergoes a 1-for-2 reverse split of the stock. Which of the following statements is true of the customer's holdings and the price of the stock?
Publicly traded limited partnership interests are typically considered:
When is a newly registered person subject to the Continuing Education Regulatory Element requirement?
The process in which the buying firm must pay for the securities and the selling firm must deliver the securities is known as:
An investor sells shares of a closed-end fund at the market. Which of the following responses best describes the net proceeds to be received?
An associated person at a member firm receives a complaint from a customer involving allegations of forgery. Once the complaint is received, which of the following actions is required?
An investor wants to purchase additional mutual fund shares with income distributed by the fund. Which of the following fund options permits this?
An investor holds 1,000 shares of a stock with a total cost basis of $5,000 in his account when a 1-for-5 reverse stock split is announced. What will be the investor's total cost basis after the payable date of the reverse split?
Which of the following strategies is best for mitigating the risk of a concentrated position?
According to FINRA rules, under which of the following circumstances, if any, is a member firm permitted to send gifts to a registered representative of another member firm?
Which of the following products is the most appropriate class of investments for a customer looking for income and capital gains?
Company ABC stock currently trades on an exchange. An ABC insider wants to sell a large number of shares of her privately held ABC stock. ABC files the necessary paperwork to register the shares, but the insider decides to wait and sell the stock at a later date. Which of the following terms best describes the type of offering that is occurring in this situation?
When is it permissible to exercise European-style options contracts?
Rising economic activity is most likely to increase revenues of which of the following sectors?