QUESTION 29

1. Which of the following are TRUE statements regarding civil penalties that may be imposed for insider trading violations?

   I. Civil penalties may be imposed only on registered persons.

   II. The civil penalty may be up to three times the profit gained or the loss avoided on an illegal transaction.

   III. A broker/dealer may be held liable if one of its registered reps was not properly supervised while committing an insider trading violation.

   IV. The violation is defined as buying or selling securities while in possession of material nonpublic information.

   		I, III, and IV
   		II, III, and IV
   		I, II, and III
   		I and IV

1 points

QUESTION 30

1. Which of the following individuals who work for a brokerage firm must be fingerprinted?

   		People who handle cash or certificates
   		Registered representatives
   		Principals
   		All provided answers are correct

1 points

QUESTION 31

1. One of your new clients is interested in purchasing municipal bonds for the first time. Which of the following information should you take into consideration prior to making a recommendation?

   I. Your client's tax bracket

   II. Your client's home state

   III. The bond's rating

   IV. The bond's maturity

   		II, III, and IV
   		I and III
   		I, II, and III
   		I, II, III, and IV

1 points

QUESTION 32

1. Call options are in-the-money when

   		the market price of the security is above the strike price plus the premium paid per share
   		the market price of the underlying security is below the strike price
   		the market price of the security is below the strike price minus the premium paid per share
   		the market price of the underlying security is above the strike price

1 points

QUESTION 33

1. Which of the following is the issuer and guarantor of all listed options?

   		FINRA
   		The ODD
   		The OAA
   		The OCC

1 points

QUESTION 34

1. Institutional trading without using the services of a broker-dealer takes place in the

   		third market
   		second market
   		fourth market
   		first market

1 points

QUESTION 35

1. Place the following stages of the business cycle in order:

   I. Expansion

   II. Contraction

   III. Peak

   IV. Trough

   		IV, III, II, I
   		I, III, II, IV
   		I, II, III, IV
   		III, II, IV, I

1 points

QUESTION 36

1. The risk that a downturn in the economy might negatively affect securities prices is called

   		systematic risk
   		credit risk
   		liquidity risk
   		inflation risk

1 points

QUESTION 37

1. Corporations may issue which of the following debt securities?

   I. Equipment trust bonds

   II. Mortgage bonds

   III. General obligation bonds

   IV. Revenue bonds

   		I, II, III, and IV
   		I and II
   		I and IV
   		II, III, and IV