Series-7 Exam Dumps - FINRA General Securities Representative Questions and Answers

restricted stock acquired via open market purchase. The two-year holding period does not apply when the security is acquired in the open market. However, if the security is owned by a control person, the other provisions of Rule 144 do apply.

90 calendar days. An investor has 90 days from the date of original purchase to sign a letter of intent. The maximum duration for the letter is 13 months from the initial purchase.

premium. That’s the term for the option cost.

market-out clause. This is used only in the case of some unusual occurrence.

to be executed at a specific price or better. Choice A is only a buy limit order and choice B is only a sell limit order. Choice C is the correct definition of a “limit order”.

without restriction. A SEP-IRA may be converted to a Roth IRA. The two-year holding period applies to SIMPLE-IRAs.

the tax collector. Taxes always have preference over any other creditors.

cash flow and depletion allowance. The other choices are not applicable because an “income” partnership already has a producing well.

inventory. A manufacturer will normally have more inventory than accounts receivable and notes receivable. Sales is not an asset category.

moral obligation. The lack of a legally binding obligation removes the issue from the general obligation category. Although defaults are possible, it is usually held that no state legislature would allow a moral obligation issue to default.