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NEW QUESTION 43
Which of the following is an acceptable deposit to answer an NYSE maintenance call?

  • A. US treasury notes
  • B. SMA
  • C. all of the above
  • D. US savings bond

Answer: A

Explanation:
US treasury notes. A maintenance call requires cash or negotiable securities. Only the treasury notes meet this standard.

 

NEW QUESTION 44
Reinvestment of dividends and distributions from investment company shares:

  • A. permits deferment of all federal income taxes on dividends and distributions until the investment is liquidated
  • B. makes possible the purchase of fund shares at a price below net asset value
  • C. all of the above
  • D. results in compounding of shares, which can be an important factor for investment growth

Answer: D

Explanation:
Explanation/Reference:
Explanation: results in compounding of shares, which can be an important factor for investment growth.
Reinvesting dividends and capital gains increases the number of shares owned. Occasionally, these programs permit purchases at net asset value, but never below that price. Shareholders do not avoid current tax liability on the amount of dividends and capital gains reinvested.

 

NEW QUESTION 45
According to FINRA Conduct Rules, a party judged guilty of a rule infraction by the District Business Conduct Committee may then appeal to:

  • A. the SEC
  • B. the FINRA Board of Governors
  • C. the FINRA Board of Arbitration
  • D. the public court system

Answer: B

Explanation:
Explanation/Reference:
Explanation: the FINRA Board of Governors. The first appeal is to the Board of Governors, then to the SEC, and then to the federal courts.

 

NEW QUESTION 46
Distribution from an IRA can begin at age 59½ and must begin by age:

  • A. 70½
  • B. 0
  • C. whenever the individual is retired
  • D. 1

Answer: A

Explanation:
Explanation/Reference:
Explanation: 70½. This the age at which IRA withdrawals are required.

 

NEW QUESTION 47
The return by the receiving party of securities previously accepted for delivery or a demand by the delivering party for return of securities that have been delivered is called:

  • A. reclamation
  • B. close-out
  • C. rejection
  • D. re-delivery

Answer: A

Explanation:
Explanation/Reference:
Explanation: reclamation. In a reclamation a dealer requests that another dealer reclaim an improper delivery.

 

NEW QUESTION 48
……

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