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| Section | Weight | Objectives |
|---|---|---|
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 10% | - Transaction processing and verification |
| Opens Accounts After Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 16% | - Account opening procedures and financial profile evaluation |
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 24% | - Topics in communications, marketing, and solicitation activities |
| Provides Customers with Information About Investments, Makes Recommendations, Transfers Assets and Maintains Appropriate Records | 50% | - Product information, suitability, recordkeeping and transfers |
Which of the following statements regarding a unit investment trust (UIT) is false?
Correct Answer: C 🗳️
Explanation: Only visible for BraindumpsPrep members. You can sign-up / login (it's free).
Any compensation earned by a broker-dealer and its registered representative on the sale of mutual fund
shares must be returned to the fund's underwriter if the purchaser decides to redeem his shares within:
Correct Answer: D 🗳️
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The Slippery Fund is a high-yield bond fund, which means it invests a substantial amount of its money in:
Correct Answer: A 🗳️
Explanation: Only visible for BraindumpsPrep members. You can sign-up / login (it's free).
Which of the following activities are prohibited by FINRA when a representative is selling shares of a
mutual fund?
I. recommending that a client purchase shares of a mutual fund prior to its ex-dividend date, so that the
client will receive the dividends when they are distributed unless this recommendation is justified by the
specific circumstances of the client
II. telling a client that a mutual fund that has only a contingent deferred sales charge is a no load fund
III. telling a client that the interest he earns on a municipal bond fund will be free from federal taxation
IV. refraining from placing the customer's order promptly in order to profit himself as a result of having
done so
Correct Answer: A 🗳️
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Ralph has a traditional IRA from which he has yet to make any withdrawals. Ralph will be turning 70 1/2 in
June, 2011.According to the required minimum distribution rule associated with traditional IRAs, Ralph is
required to start withdrawing funds from this account:
Correct Answer: B 🗳️
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