Join the discussion
Question 1/56
Which of the following responses accurately describes a secondary market transaction?
Correct Answer: C
A secondary market transaction occurs when securities are bought and sold between investors, typically on an exchange.
* C is correctbecause securities purchased on a registered exchange are secondary market transactions.
* Ais incorrect as open-end mutual fund shares are purchased directly from the issuer.
* Brefers to the primary market.
* Dis also incorrect as private placements occur in the primary market.
* C is correctbecause securities purchased on a registered exchange are secondary market transactions.
* Ais incorrect as open-end mutual fund shares are purchased directly from the issuer.
* Brefers to the primary market.
* Dis also incorrect as private placements occur in the primary market.
Add Comments
- Other Question (56q)
- Q1. Which of the following responses accurately describes a secondary market transaction?...
- Q2. A Treasury bill is issued under which of the following terms?...
- Q3. Which of the following entities settles broker-to-broker equity, listed corporate and muni...
- Q4. Which of the following statements is true regarding the SEC's characterization of a regist...
- Q5. Company ABC stock currently trades on an exchange. An ABC insider wants to sell a large nu...
- Q6. Assume that the economy is operating at nearly full capacity. The initial results of an ov...
- Q7. Before an affiliate of an issuer is permitted to sell 10,000 shares of restricted securiti...
- Q8. Which of the following listed securities carries voting rights?...
- Q9. The financial risk that a given security is not readily tradable in the market without imp...
- Q10. Which of the following statements characterizes the typical relationship between the marke...
- Q11. Which of the following responses describes a FINRA member?...
- Q12. Publicly traded limited partnership interests are typically considered:...
- Q13. Which of the following statements is true about a corporation's balance sheet?...
- Q14. Which of the following activities engaged in by a registered person is considered a privat...
- Q15. Which of the following types of securities is an equity?...
- Q16. The provision that allows a bond issuer to purchase bonds from customers prior to the matu...
- Q17. How does an individual acquire restricted stock?...
- Q18. Which of the following statements is a characteristic of a government bond fund?...
- Q19. Which of the following transactions is most profitable if executed prior to a significant ...
- Q20. A hypothecation agreement gives the broker-dealer the right to engage in which of the foll...
- Q21. Under FINRA rules, which of the following activities is not considered an outside business...
- Q22. If a company with a single outstanding bond issue chooses to extinguish this debt through ...
- Q23. Which of the following characteristics best describes a benefit of a variable annuity suba...
- Q24. Which of the following risks are associated with Treasury securities?...
- Q25. Under which of the following circumstances, if any, is it permissible for an individual wi...
- Q26. Which of the following security types is frequently offered to the public as part of a pac...
- Q27. A registered representative (RR) at a member firm is the subject of a statutory disqualifi...
- Q28. A customer receives a confirmation that discloses the firm has acted in a principal capaci...
- Q29. A market maker quotes the market on an NMS equity security as 39.05 - 39.15 [5x10]. Which ...
- Q30. An investor is bullish on the technology sector and heavily invests in microchip companies...
- Q31. Under which of the following circumstances, if any, is a member firm permitted to send gif...
- Q32. Offering 403(b) tax-sheltered annuity accounts to which of the following groups is permiss...
- Q33. A registered representative (RR) owns 500 shares of a thinly traded security. A customer o...
- Q34. Which of the following terms describes failure to honor a firm quote?...
- Q35. A municipal securities dealer makes a political contribution of $990 to a local mayoral ca...
- Q36. When are registered persons required to fulfill their Continuing Education (CE) Regulatory...
- Q37. A customer will be out of the country for the next two months on business and asks his fir...
- Q38. Which of the following statements describes a characteristic of Treasury securities?...
- Q39. Which of the following responses describes a common feature of a hedge fund?...
- Q40. When is a newly registered person subject to the Continuing Education Regulatory Element r...
- Q41. Under which of the following circumstances, if any, is a registered representative (RR) pe...
- Q42. Corporate bonds unsecured by any pledge of property are called:...
- Q43. Which of the following responses best describes how member firms are required to retain el...
- Q44. Which of the following responses describes a collateralized mortgage obligation (CMO) tran...
- Q45. Offering 403(b) tax-sheltered annuity accounts to which of the following groups is permiss...
- Q46. Which of the following securities has the greatest investment risk?...
- Q47. Which of the following statements best describes the permissibility of a borrowing arrange...
- Q48. The formation of an asset-backed security or debt obligation that represents a claim on th...
- Q49. A retail investor owns shares of Mutual Fund ABC that paid a $0.25 dividend on September 1...
- Q50. How long are unused funds permitted to remain in a Coverdell education savings account?...
- Q51. An investor wants to purchase mutual fund shares, but she is concerned about the tax effic...
- Q52. If an investor is bullish on ABC, which of the following actions will he most likely take?...
- Q53. What is the sales load of an open-end investment company with a net asset value (NAV) of $...
- Q54. A registered representative who is terminated from a broker-dealer must notify FINRA of a ...
- Q55. A customer writes a call for XYZ stock with a strike price of $35 and receives a premium o...
- Q56. A customer purchases 100 shares of stock. The customer fears a decline in the share price ...
