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

the management group. The management group is actually comprised of the management company (including the underwriter) and the investment advisor.

the lowest net interest cost to the issuer. All competitive bids are based upon the lowest interest cost.

the holder of each must pay income taxes on the dividends received each year. Only the holder of mutual fund shares must pay income tax on annual dividends. This is “not” true of annuity owners. The other choices are true statements.

120%. The toll facility usually sets rates to cover 120% of maintenance and debt service.

36,000. Under Rule 144 up to one percent of the outstanding shares or the average weekly volume for the preceding four weeks, whichever is greater. The total volume for the last four seeks was 144,000 shares. The average is therefore 36,000 shares. This is greater than one percent of the shares outstanding (35,000).

sell calls. Calls are covered by the underlying stock. If the calls were exercised, the stock would be delivered to meet the obligation. The income also reduces the break-even of the stock.

providing short-term capital needs to client companies. The short-term capital needs of companies are normally the function of commercial bankers, not investment bankers.

gift tax. By definition, gift tax is a progressive tax. All of the others are a level percentage.

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.

immediately. The employer’s contributions may be subject to a vesting schedule, but the employee’s contributions are immediately vested.