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Series 79 – Practice Test 1

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Question 1 of 10

1. Question

The term “soft dollar compensation” does not exclude:

computer hardware
Correct Incorrect Correct answer

rent
Correct Incorrect Correct answer

computer software
Correct Incorrect Correct answer

cash compensation
Correct Incorrect Correct answer

Correct

Incorrect
Question 2 of 10

2. Question

Which of the following situations would invoke FINRA’s SD (statutory disqualification) provisions?

applicant was barred from an institution
Correct Incorrect Correct answer

applicant has a misdemeanor DUI
Correct Incorrect Correct answer

applicant was ticketed for reckless driving
Correct Incorrect Correct answer

applicant was fired from previous employment due to alleged AML violations
Correct Incorrect Correct answer

Correct

Incorrect
Question 3 of 10

3. Question

Reverse convertible notes are deemed least suitable for:

Corporate executives
Correct Incorrect Correct answer

Senior investors
Correct Incorrect Correct answer

Young couples
Correct Incorrect Correct answer

Individuals who qualify for naked options
Correct Incorrect Correct answer

Correct

Incorrect
Question 4 of 10

4. Question

An issuer has made a willful material omission in required disclosure documents. What action would an aggrieved investor be well-advised to take in this circumstance?

Take the firm to arbitration
Correct Incorrect Correct answer

Share in any penalties levied by the SEC
Correct Incorrect Correct answer

File a civil lawsuit against the officers
Correct Incorrect Correct answer

Pursue a criminal case against the issuer
Correct Incorrect Correct answer

Correct

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Question 5 of 10

5. Question

SEC Rule 10b-4 holds that it is a manipulative and deceptive act to engage in:

front running
Correct Incorrect Correct answer

spinning
Correct Incorrect Correct answer

selling away
Correct Incorrect Correct answer

short tendering
Correct Incorrect Correct answer

Correct

Incorrect
Question 6 of 10

6. Question

SEC Rule 10b-9 makes reference to which of the following underwritings?

firm commitment
Correct Incorrect Correct answer

stand-by
Correct Incorrect Correct answer

contingent
Correct Incorrect Correct answer

all of the above
Correct Incorrect Correct answer

Correct

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Question 7 of 10

7. Question

When is the participation of syndicate members terminated?

when the member has sold out its allotment
Correct Incorrect Correct answer

when the managing underwriter terminates the underwriting
Correct Incorrect Correct answer

once the final order for purchase has been executed in the securities which have been allocated to the member
Correct Incorrect Correct answer

upon allocation of the allotment to the syndicate member
Correct Incorrect Correct answer

Correct

Incorrect
Question 8 of 10

8. Question

Which of the below receive the greatest percentage of the underwriting spread?

the manager as a result of the management fee
Correct Incorrect Correct answer

the selling group member as a result of selling shares
Correct Incorrect Correct answer

the syndicate member as a result of selling allotted shares
Correct Incorrect Correct answer

the member firms selling shares receiving the re-allowance
Correct Incorrect Correct answer

Correct

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Question 9 of 10

9. Question

Javitz Securities has been hired by Spitzer Securities as its Qualified Independent Underwriter to take Spitzer public. The Corporate Finance Department requires the underwriting compensation documents to be filed by:

Javitz
Correct Incorrect Correct answer

Spitzer
Correct Incorrect Correct answer

Both Javitz and Spitzer
Correct Incorrect Correct answer

Member firms going public are exempt from the CFD requirements
Correct Incorrect Correct answer

Correct

Incorrect
Question 10 of 10

10. Question

A customer with a discretionary account may be sold IPO shares in which the firm is a distribution participant:

if the member firm has received affirmative written approval from the client
Correct Incorrect Correct answer

if the member firm has received client approval in the form of a negative consent letter
Correct Incorrect Correct answer

so long as the securities are suitable for the client
Correct Incorrect Correct answer

under no circumstances
Correct Incorrect Correct answer

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Quiz Summary

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Results

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1. Question

The term “soft dollar compensation” does not exclude:

2. Question

Which of the following situations would invoke FINRA’s SD (statutory disqualification) provisions?

3. Question

Reverse convertible notes are deemed least suitable for:

4. Question

An issuer has made a willful material omission in required disclosure documents. What action would an aggrieved investor be well-advised to take in this circumstance?

5. Question

SEC Rule 10b-4 holds that it is a manipulative and deceptive act to engage in:

6. Question

SEC Rule 10b-9 makes reference to which of the following underwritings?

7. Question

When is the participation of syndicate members terminated?

8. Question

Which of the below receive the greatest percentage of the underwriting spread?

9. Question

Javitz Securities has been hired by Spitzer Securities as its Qualified Independent Underwriter to take Spitzer public. The Corporate Finance Department requires the underwriting compensation documents to be filed by:

10. Question

A customer with a discretionary account may be sold IPO shares in which the firm is a distribution participant: