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1. Which of the following is not an investment company within the terms of the Investment Company Act of
1 940?
A) a unit investment trust company
B) a management company
C) a face-amount certificate company
D) a holding company dealing in mineral leaseholds
2. A registered representative privately assures a customer that a certain stock will double within 18 months.
During this period the stock the stock performs as predicted. Which of the following statements is true?
A) this statement constituted a form of fraud prohibited under the Securities Exchange Act of 1934
B) this is a violation because the SEC requires all information about stock prices to be publicly announced
C) the comment is permissible only if the representative had been registered with the SEC under the
Investment Advisors Act of 1940
D) the commentary was permissible because the stock advanced as the registered representative
forecast
3. Bubba buys a 5% municipal bond maturing in 15 years that is trading at a market price of 85. What is the
nominal yield?
A) cannot be determined
B) 5.00%
C) 5.1%
D) 5.88%
4. Under Rule 415 a corporation may file a single registration statement with the SEC covering its
anticipated financing need for the next:
A) five years
B) three years
C) two years
D) one year
5. An investment company incapable of issuing a long-term debt instrument is:
A) a unit investment trust
B) a closed-end investment company
C) an open-end investment company
D) a face-amount certificate company
Solutions:
| Question # 1 Answer: D | Question # 2 Answer: A | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: C |
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