When shorting stock, loss results from a rise in CMV. If this activity does not load, try refreshing your browser. At the time of account opening, individuals filling out a new account form must supply certain information which will enable which of the following agencies to verify they are not on the list of known money launderers, terrorists or others deemed ineligible to open an account at a financial institution?

Without further discussion, you process the client’s purchase order. Active traders take profit off the table when they believe the market is about to turn around. 3) A customer purchases 100 shares of ABC stock @ 52 and sells 1 ABC Oct 55 call for 7. The quantity limitations set forth in SEC Rule 144 for sales of control stock are properly described in answer B.One of your customers who is an active trader and is a student of technical analysis has called you to discuss his findings regarding the price action on MMM common. The months are different; the strike prices are the same. Fed funds loans are overnight loans between commercial banks, normally used to assist them in meeting their FRB reserve requirements. A passive strategy is one in which there is infrequent selling of securities in the portfolio, which fits the client’s desire for low portfolio turnover.When comparing a broker-dealer and an investment advisor, which of these statements is most accurate? As a result of purchasing the Ford stock in early January, the December 30th loss cannot be deducted in the year of sale.Gamma Medical, a domestic NASDAQ listed company, has each of the below investments in its corporate investment portfolio. Credit spreads profit when both options expire (the investor keeps the credit).Mr.

the market price of XYZ falls below 40 and remains there This strategy is a calendar spread, a/k/a a time or a horizontal spread. It is for this reason that the 5.4% preferred stock has the greatest after-tax yield when compared to the other three choices. Excluding commissions, at what price would this customer break even? This Series 7 course is a top-off course. When it comes to the determination of ex-dividend dates: This portfolio requires 40% more options: 7 long puts.for a client who is predominantly a buy and hold investor.for a client wishing to follow a dollar cost averaging approach.for a client nearing retirement who will primarily be withdrawing rather than making new investments. 4) John Public owns 1,000 shares of a computer stock at $50 per share. They are charging a fee for managing the customer’s assets. Advisors are compensated based upon performance, brokers are not.Advisors are compensated based upon transactions, brokers are compensated based upon assets under management.Advisors are compensated based upon fees for advice, brokers are compensated based upon transactions. Regulation T states that public customers are given 2 business days beyond regular way settlement to make payment. Sell stop orders must first be triggered, also called activated or elected, by a trade at or below the stop price. His deposit requirement with Reg. an extension of time will be requested on his behalf and if granted, no liquidation will occur.no extension of time is necessary under these circumstances: he has two additional business days in which to make payment.the purchase will be canceled for non-payment: his account will be frozen for 90 calendar days.the firm will do a sell-out, at Mr. Watney’s expense, and freeze his account for 90 calendar days. The S&P 500 Index is currently at 2000.00 and her portfolio has a current market value of $1,000,000. 70% of the dividends received are given tax-free treatment. Unless the client believes the stock is about the ‘break out’ to the upside and pierce through the resistance level, the client will sell, taking the profit.The stock of which of the following listed corporations is generally considered the most sensitive to interest rate changes? Pick from the below the answer which correctly states the intrinsic value and the time value of this option. A long call locks in the price at which the borrowed stock may be repurchased. He believes that it is fast approaching its resistance level of 60. If interest rates rise, long term debt will decline in market value, which is referred to as interest rate risk. This investor sold the November and bought the October. to know the shares being sold short can be borrowed, or at a minimum to have no reason to believe the shares are not readily available for borrowing.An option trader who simultaneously goes long an XYZ Oct 40 put and short an XYZ Nov 40 put will profit if: The execution takes place at 48.95.Your firm has hired a new candidate to be a municipal securities registered representative.

$7 cost basis and the date of acquisition is the date of the gift$14 cost basis and the date of acquisition is the date of the gift$7 cost basis and the date of acquisition is the donor’s date of purchase$14 cost basis and the date of acquisition is the date of purchase by the donor IRS regulations state that the donor’s cost and the donor’s date of purchase transfer over to the minor when a gift of securities is given under UGMA.A Eurodollar bond has each of the following characteristics except: Regulation SHO contains the ‘locate rule’ requiring the order dept. If her date of hire was March 1st, and she passed the appropriate qualification examination required by the MSRB on March 31st, when is the earliest date on which she may begin to engage in the sale of municipal securities with public customers? You have not finished your quiz.