Question

QUESTION 41

1. RANs, BANs, TANs, and CLNs are issued by municipalities to

   		provide intermediate-term financing
   		provide flexible-term financing
   		provide short-term financing
   		provide long-term financing

1 points   

QUESTION 42

1. Which of the following is NOT TRUE of warrants?

   		Warrants can trade separately from the stock or bond of the issuer.
   		Warrants are issued to make a new stock or bond offering more attractive to investors.
   		Warrants give holders a perpetual interest in the issuer’s underlying stock.
   		Warrants are longer-term than rights.

1 points   

QUESTION 43

1. Which of the following items must be included on a customer's order ticket for common stock?

   I. The registered representative’s ID number

   II. A description of the security

   III. Whether the trade is executed in a cash or margin account

   IV. The execution price

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

1 points   

QUESTION 44

1. Which of the following are ways that you can help a client mitigate her investment risk?

   		Portfolio rebalancing
   		All provided answers are correct
   		Diversification
   		Hedging

QUESTION 46

1. Which of the following investments have tax advantages?

   I. IRAs

   II. Municipal bonds

   III. GNMAs

   IV. Hedge funds

   		I, III, and IV
   		II, III, and IV
   		I and II
   		I, II, and III QUESTION 48 Which of the following investments would be most suitable for a married couple in their mid-twenties who have already maxed out their IRA contributions? Buying index call options DPPs Commodities Growth funds Which of the following is/are considered private investment companies? I. Hedge funds II. Specialized funds III. Income funds IV. Private-equity funds I and IV II and IV I, II, III, and IV I, II, and IV 1 points    QUESTION 51 1 points    QUESTION 50 The aggregate exercise price of an option is the strike price multiplied by the number of outstanding option contracts on the same security at the same strike price the strike price multiplied by the number of units of the underlying security the strike price multiplied by the number of outstanding option contracts on the same security the strike price of the underlying security 1 points    QUESTION 49 Which oil and gas DPP provides the highest degree of safety for investors? Combination program Exploratory program Developmental program Income program

Answer 1

41. The correct option is C (provide short term finance).

These are issued by municipaities to finace short term projects and are repaid within the period of 1 year.

42. The correct option is C (Warrants gives holders a perpetual interest in issuers underlying stock).

Warrants gives right only till its expiry, even it is not exercised till expiry interest ends.

43. The correct option is D (all the options).

An customer order ticket contains all the details mentioned in the question.

44. The correct option is B (All answers are correct).

All these are methods of mitigating risks in her portfolio.

46. The correct option is C (1 & 2)

Only Investment in IRAs and municiple bonds are eligible to be tax advantages.

48. The correct option is D (Growth funds).

Since the age of couple is low and they have already invested heavily in Risk free investments they can invest in growth funds to diversify their savings and take some risk.

. The correct option is C (All)

The are considered to be private investment companies.

50. The correct option is A.

The strike price multiplied with number of outstanding option contracts on the same security.

49. The correct answer is D.

Income program invests in existing wells generating cash flows and which will required to raise little additional cash in the future and is the least risky option but least growth option as well.