Which of the following orders can be used to close a short position in CDT stock that consists of 1000 shares?

Your client, Jane Anderson, has owned QRS for a few years but has now turned bearish on QRS. What transaction would you recommend?
Inhaltsverzeichnis Show
A) Buy QRS to open
B) Buy QRS to close
C) Sell QRS to open
D) Sell QRS to close
Your client is purchasing XYZ corporate bonds and wants to know when regular way settlement is. You should tell her
A) trade date plus 2 business days.
B) trade date plus 3 business days.
C) trade date plus 1 business day.
D) trade date.
Which of the following best describes how a market order to sell would fill if placed when the price of the stock is a 40?
A) The next available price
B) Only at 40
C) The next available price below 40
D) The next available price above 40
1 / 1 point
The bid price represents
the price the broker-dealer is willing to pay when buying a security.
the price the customer will pay when buying a security.
the price a customer will receive when selling a security.
the price the broker-dealer is will receive when buying.
A) II and III
B) I and II
C) I and III
D) II and IV
Which of the following orders can be used to close a short position in CDT stock that consists of 1,000 shares?
A) Buy 1,000 shares of CDT
B) Write 10 CDT call options
C) Sell 1,000 shares of CDT
D) Buy 10 CDT call options
A stock trade took place on Tuesday, July 2. When would regular way settlement normally take place?
A) Monday, July 8
B) Wednesday, July 3
C) Tuesday, July 2
D) Friday, July 5
Your client, Mrs. Stephens, has been bearish on LMN stock and sold it short several months ago. She now believes the company is in a good position for a turn around and wants to change her strategy on LMN. What should she do to implement her new strategy?
A) Buy to close her existing position and open a new long position in the stock
B) Sell an equal number of shares to her existing position
C) Buy an equal number of shares to her existing short position
D) Sell short QRS to close her existing position
Which of the following best describes how a sell stop at 39 order would be filled?
A) The next price above 39 after the market rises to 39.
B) The next available price after the market price rises to 39.
C) The next available price after the market price falls to 39.
D) Only the next price below 39 after the market falls to 39.
John Christensen places a buy limit order at 42 when the market price of the stock is at 45. Which of the following best describes how the order would fill?
A) The order would be filled immediately because the market price is already above 42
B) The order would be filled between when the stock price is between 42 and 45
C) The order can only be filled at a price of 42 or lower
D) The order would be filled at the next available price after the stock price drops to 42
James Thomas calls and is interested in buying some GNMA certificates and wants to know when payment will be due. You should tell him
A) trade date plus three business days.
B) on the trade date.
C) trade date plus two business days.
D) trade date plus one business day.
.1 / 1 point
A buy stop order at 39 could fill at which of the following prices?
38
39
40
41
A) II and III
B) III and IV
C) I, II, III, and IV
D) I and II
All of the following would be required for a discretionary account except
A) all trades must be promptly approved by a principal at the firm.
B) the customer must authorize discretion.
C) the account must receive Financial Industry Regulatory Authority (FINRA) approval prior to the first trade.
D) a principal at the firm must authorize discretion
Which of the following are required in discretionary accounts?
A) Prior approval by a principal before each discretionary trade is placed
B) FINRA approval to open the account
C) SEC approval to open the account
D) Prompt approval by a principal following each discretionary trade
An investor who has a short position in 500 shares of JKH common stock would eliminate that position by
A) entering a closing purchase order for 500 shares of JKH.
B) entering a closing sale order for 500 shares of JJK.
C) entering a closing purchase order for 500 shares of ABC.
D) entering an opening purchase order for 500 shares of JKH.
Which of the following choices would a registered representative be able to make for a customer in a nondiscretionary account?
The time of execution of the trade
Which security to buy
How much of the security to buy
At what price to execute the trade
A) II and IV
B) II and III
C) I and IV
D) I and I
Your client, Quinn, wants to place an order to sell a stock in her portfolio when the current price is 45, but she is only willing to sell if she can sell for at least 47. Which order should she place?
A) A sell limit order
B) A sell stop order
C) A market order
D) A sell stop limit order
Josie Reese, one of your clients with an option account, calls asking you to remind her when she would settle if she bought a call today. You would tell her
A) trade date.
B) trade date plus one business day.
C) trade date plus two business days.
D) trade date plus three business days.
Which of the following best describes how a market order to buy would fill if placed when the market price of the stock was at 40?
A) Only at 40
B) The next available price below 40
C) The next available price
D) The next available price above 40
A market order to buy must be executed when and at what available price?
A) Within 24 hours, at the highest
B) Immediately, at the highest
C) Within 24 hours, at the lowest
D) Immediately, at the lowest
Your customer has purchased $10,000 in U. S. Treasury bonds. These securities
A) cannot be delivered in physical certificates because they exceed the amount for paper certificate delivery.
B) can be transferred in either physical or book-entry form in accordance with the purchasers request.
C) will have evidence of ownership recorded in book-entry form.
D) are required to be delivered in the form of physical paper certificates.
With a discretionary account
A) the customer may refuse any trades done by the party given the discretion.
B) the customer may still enter orders.
C) churning is permitted by the party given the discretion.
D) a full power of attorney is needed on file to grant discretion.
1 / 1 point
ABC currently has the following quotes:
Market Maker Bid Ask Size
MM1 10.0 10.50 3x2
MM2 10.20 10.45 4x3
MM3 10.25 10.60 3x2
The inside bid good is for
A) 200 shares.
B) 100 shares.
C) 400 shares.
D) 300 shares
Your client, Teresa Jenson, calls and wants to purchase T-bills and wants to know when payment is due. You should tell her
A) trade date plus 1 business day.
B) trade date plus 3 business days.
C) trade date.
D) trade date plus 2 business days
Short sellers have
A) limited profit and loss potential.

B) unlimited profit and loss potential.
C) unlimited profit potential and limited loss potential.
D) limited profit potential and an unlimited loss potential.
Which of the following best describes how a sell stop at 39 order would be filled?
A) The next available price after the market price rises to 39
B) The next available price after the market price falls to 39
C) The next price above 39 after the market rises to 39
D) The next price below 39 after the market falls to 39
The locate requirement is an element of which of the following transactions?
A) Buy to close
B) Sell to open
C) Sell to close
D) Buy to open
Unless otherwise specified, the size of a firm quote is
A) 1,000 shares.
B) 500 shares.
C) 100 shares
D) 10,000 shares
Some issuers issue securities in electronic form, some securities have been issued in physical form. Which of the following statements are true in relation to electronic or physical form?
A) All U.S. Government Securities are issued in book-entry form.
B) All U.S. Government Securities are issued with physical paper certificates.
C) Corporate bonds have always been issued in electronic form.
D) Corporate Stocks can only exist in electronic form.
1 / 1 point
The trade would need to be placed in a discretionary account if the registered representative chooses which of the following?
The time of execution of the trade
Which security to buy
How much of the security to buy
At what price to execute the trade
A) II and IV
B) I and IV
C) II and III
D) I and
Which of the following best describe a wrap account?
The firm offering the account would need to be registered as both a broker-dealer and an investment advisor
The account fee covers both transactions and advice
The wrap fee for the account covers only where the firm acts as a broker or acts as a dealer
The firm may only be registered as a broker or dealer
A) II and III
B) I and IV
C) III and IV
D) I and II
What is the spread on a stock quote?
A) The difference between the bid price and the ask price or offer
B) The broker-dealer's commission charges for the transaction
C) The range of prices the stock has shown over the course of one trading day
D) The profit margin for an individual trade
A customer enters the following order: Sell 1,000 shares of XYZ at 23. Which of the following executions would the customer accept?
A) 23.50

B) 21.25
C) 22.50
D) 22.90
Which of the following transactions has the most risk?
A) Selling short
B) Buying to open
C) Short against the box
D) Selling to close
Discretion given to a registered representative to make transactions applies to all of the following except
A) the number of shares or units for the transaction.
B) timing and price only.
C) the security for the transaction.
D) whether to buy or sell.
Which of the following best describes how a market order to sell would fill if placed when the price of the stock is a 40?
A) Only at 40
B) The next available price
C) The next available price below 40
D) The next available price above 40
Which of the following would be required in discretionary accounts?
A) Securities and Exchange Commission (SEC) approval to open the account
B) Financial Industry Regulatory Authority (FINRA) approval to open the account
C) Prior approval by a principal before each discretionary trade is placed
D) Prompt approval by a principal following each discretionary trade
Your client Mr. Jenson calls and wants to purchase T-bills and wants to know when payment is due. You should inform him
A) trade date.
B) trade date plus one business day.
C) trade date plus three business days.
Your client is purchasing XYZ corporate bonds and wants to know when is regular way settlement. You should tell her
A) trade date plus two business days.
B) trade date plus three business days.
C) trade date.
D) trade date plus one business day.
The spread a dealer makes is best described as
A) the total commission.
B) the ask plus the bid.
C) the ask minus the bid.
Which of the following transactions has greatest risk?
A) Selling to close
B) Short against the box
C) Buying to open
D) Selling short

Which of the following orders can be used to close a short position?

If you have a short position, you can generally use stop-buy orders to limit losses in the event the stock's price increases.

For which of the following investors would Class C shares be most suitable?

Key Takeaways Class C shares can involve a back-end load if shares are sold within a year of purchase. Class C shares may be best for investors with an investment time horizon of more than one year and less than three years.

Which of the following securities provides US investors with a way to gain exposure to the common stock of a foreign issuer?

ADRs are a form of equity security that was created specifically to simplify foreign investing for American investors. An ADR is issued by an American bank or broker. It represents one or more shares of foreign-company stock held by that bank in the home stock market of the foreign company.

What is the inside quote of ABC?

what is the inside quote of ABC? The inside quote is the highest bid (the highest price someone is willing to buy) paired with the lowest offer, or ask (the lowest price someone is willing to sell). In this case, the most someone was willing to pay was 10.25, and the lowest someone was willing to sell was 10.45.

Which of the following orders can be used to close a short position in CDT stock that consists of 1000 shares?

Which of the following orders can be used to close a short position?

For which of the following investors would Class C shares be most suitable?

Which of the following securities provides US investors with a way to gain exposure to the common stock of a foreign issuer?

What is the inside quote of ABC?

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