FINRA Security Industry Essentials Practice Test 36

1. Which of the following corporate voting procedures entitles a shareholder to one vote per share, and votes must be divided evenly among the candidates being voted on?

2. Which of the following refers to the trading of exchange-listed securities in the over-the-counter market? These trades allow institutional investors to trade blocks of securities directly, rather than through an exchange, providing liquidity and anonymity to buyers.

3. An investor sells a naked call on Omikron for a $250 premium. Which of the following is true regarding the investor's position?

4. Which of the following acts created the SEC and empowered it with broad authority over all aspects of the securities industry?

5. Which of the following is a free tool provided by FINRA that is intended to help consumers research the professional backgrounds of brokers and brokerage firms, as well as investment adviser firms and advisers?

6. The Federal Reserve Board performs which of the following actions?

7. Which of the following is an offering of shares to existing stockholders on a pro-rata basis?

8. The difference between a bond's price and the conversion parity price is referred to as which of the following?

9. An individual who meets which of the following criteria must register as an investment adviser?

(1) The individual provides advice or analyses concerning securities.

(2) The individual is in the business of providing investment advice.

(3) The individual provides investment advice for compensation.

(4) The individual is a CPA or attorney whose investment advice is only incidental to his or her other activities.

10. Which of the following is a type of preferred stock that gives the investor the right to receive dividends equal to the normally specified rate, as well as an additional dividend based on a specific predetermined condition?

11. Profit sharing plans have which of the following characteristics?

12. All but which of the following are correct regarding the Central Registration Depository (CRD)?

13. Which of the following are responsible for maintaining fair and orderly markets for an assigned set of listed firms? They operate both manually and electronically to facilitate price discovery during market opens, closes, and during periods of trading imbalances and instability.

14. If real GDP declined the last 3 quarters, how many more consecutive quarters of decline would be needed to be classified as an economic depression?

15. Which of the following is the correct reason to purchase a particular investment for a client's portfolio?