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Series 79 Practice Exam 1

Series 79 Practice Exams

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Series 79 Practice Exam 1

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Question 1 of 10

1. Question

The term “soft dollar compensation” does not exclude:

computer hardware
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rent
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computer software
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cash compensation
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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
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applicant has a misdemeanor DUI
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applicant was ticketed for reckless driving
Correct Incorrect Correct answer

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

Incorrect
Question 3 of 10

3. Question

Reverse convertible notes are deemed least suitable for:

Corporate executives
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Senior investors
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Young couples
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Individuals who qualify for naked options
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Correct

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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
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File a civil lawsuit against the officers
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Pursue a criminal case against the issuer
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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
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spinning
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selling away
Correct Incorrect Correct answer

short tendering
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Correct

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Question 6 of 10

6. Question

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

firm commitment
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stand-by
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contingent
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all of the above
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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
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when the managing underwriter terminates the underwriting
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once the final order for purchase has been executed in the securities which have been allocated to the member
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upon allocation of the allotment to the syndicate member
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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
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the selling group member as a result of selling shares
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the syndicate member as a result of selling allotted shares
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the member firms selling shares receiving the re-allowance
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Correct

Incorrect
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
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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
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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
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under no circumstances
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Correct

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Next: Series 79 Practice Exam 2

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