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1. Connie Serve placed an order to purchase five, $1,000 Treasury bonds in the secondary market on
Tuesday, October 12th.Connie will be required to pay for this purchase on which day?
A) Tuesday, October 12th.
B) Friday, October 15th.
C) Thursday, October 14th.
D) Wednesday, October 13th.
2. Which of the following would not have to register as an investment adviser or an investment adviser
representative under the Investment Advisers Act of 1940?
I. an insurance agent who sells only whole life and term life policies
II. a commodity futures broker
III. a bank employee who sells the bank's customers only CDs and other bank securities that are
FDIC-insured
IV. a person that is registered as a broker-dealer with the SEC that also provides investment advice to its
customers for additional compensation
A) I, II, III, and IV
B) II and III only
C) I, II, and III only
D) I and III only
3. Which of the following is not a feature associated with an investment in preferred stock?
A) Preferred shareholders usually have the right to vote on members of the board of directors, mergers,
and shareholder proposals.
B) The dividend is typically a fixed amount.
C) The preferred stock may be convertible to common stock.
D) If a dividend payment is skipped, it must typically be made up before common shareholders can
receive any dividends.
4. Dottie is a newly-minted, registered representative and is doing some cold calling to line up appointments
with prospects. When doing so, Dottie:
I. must not call anyone on her firm's do-not-call list.
II. must not call anyone on the FTC's national do-not-call-list.
III. must not call anyone before 7 a.m. or after 7 p.m., based on the time zone of the person being called.
IV. must provide the person called with her name, the name and contact information of her firm, and the
purpose of her call.
A) I and IV only
B) I, II, III, and IV
C) I, II, and IV only
D) I and III only
5. A feature that gives a bondholder or the owner of preferred stock of a corporation the option to exchange
his security for shares of the common stock of the firm is called a:
A) convertible feature.
B) right.
C) call feature.
D) warrant.
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: C | Question # 3 Answer: A | Question # 4 Answer: C | Question # 5 Answer: A |
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Uniform Securities Agent State Law Examination
General Securities Representative Examination (GS)
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