The public offering price of the securities of an open-end management investment company is:

A. determined by a method set forth in the prospectus of the issuer

B. based upon net asset value of the securities underlying the shares of the issuer plus a 10 % sales charge

C. determined by the relative demand for the shares of the issuer

D. the price used by distributors in determining sales incentive discounts to individual purchasers

The definition of debentures is:

A. a loan secured by real estate

B. collateralized securities

C. a worthless security

D. securities backed by the general credit of the issuers but no specific collateral

Which of the following is not found in the final prospectus?

A. a statement as to possible stabilization by the manager

B. the public offering price

C. a copy of the underwriting agreement

D. a statement that the SEC neither approves nor disapproves of the issue

Which of the following would not be subject to the holding period restrictions under Rule 144?

A. restricted stock acquired via investment letter

B. restricted stock acquired via stock options plan

C. restricted stock acquired via private placement

D. restricted stock acquired via open market purchase

In the distribution of a new issue, a dealer acting as an underwriter is said to have a:

A. firm market

B. divided account

C. free ride

D. firm commitment

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

Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the prices listed: 100 ABC $30 200 XYZ $70 200 QBB $40 200 KKK $25 Total market value = $30,000 Debit balance in the account = $12,000 Net equity balance of the account = $18,000

If Bubba wants to buy 100 shares of DUM at $30 per share, how much additional money must be deposited?

A. $3,000

B. $1,500

C. $2,000

D. $0

In the distribution of a new issue underwriters or selling group member are prohibited from:

A. selling to the public at the so-called public offering price

B. selling to another broker or dealer who needs to fill an accommodation order

C. withholding blocks of a new issue in the member's account

D. all of the above

If a customer dies, the registered representative is required to:

A. cancel all open (good `til cancelled) orders

B. await instructions and necessary papers from the executor of the estate

C. sell out the account

D. both A and B

Bubba opens an account at a broker/dealer with instructions to "transfer and ship". This means that:

A. all correspondence to Bubba must be sent registered mail

B. each trade report must note Bubba's certificate registration instructions

C. securities purchased must be registered in Bubba's name and then delivered to him

D. transactions for Bubba will be transferred to another broker for processing