Last Updated: May 31, 2026
No. of Questions: 400 Questions & Answers with Testing Engine
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1. Bubba has been classified as a restricted person according to Rule 2790. He may purchase equity
securities of an IPO except:
A) when the transaction is exempt by an order of the FINRA
B) when the new issue of securities is purchased pursuant to a stand-by agreement
C) when the new issue of securities is purchased pursuant to a best effort basis
D) to purchase securities to avoid dilution
2. A mutual fund with an 8% load and a 1% redemption fee carries a current quote of $6.25 - $6.79. If an
investor has tendered his shares for redemption on that basis, the per share price he will receive is
approximately:
A) $6.19
B) $6.79
C) $6.72
D) $6.25
3. The Securities Act of 1933 provides for:
A) extension of credit in the securities industry
B) establishment of the Securities and Exchange Commission
C) regulation of new issues of securities
D) all of the above
4. Bubba opens a new account with a broker/dealer and asks for a copy of the firm's financial statement. If
the firm has not been subject to a formal audit by an independent public accountant for quite some time,
what should it do in response to the request?
A) refuse to provide a financial statement
B) delay sending a statement until Bubba has had an account with the firm for at least six months
C) wait until after the next audit is completed before providing a statement to Bubba
D) give Bubba its latest available statement
5. Regulation T is set at 50%. Bubba's account contains long positions in the following securities with the
prices listed
1 00 ABC $30
2 00 XYZ $70
2 00 QBB $40
2 00 KKK $25
Total market value = $30,000
Debit balance in the account = $12,000
Net equity balance of the account = $18,000
Bubba wants to buy 100 shares of DUM at $30 per share and 100 shares of OUT at $120. How much
additional money must be deposited?
A) $7,000
B) $4,500
C) $1,500
D) $6,000
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: A | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: B |
Herman
Kerwin
Mick
Prescott
Tab
Wright
Betsy
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