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HS 328 INVESTMENTS EXAM WITH
COMPLETE SOLUTIONS
Question : Which of the following advisors must register
with the U.S. Securities and Exchange Commission
(SEC)?
A) An advisor who sells insurance products B) An advisor who is registered with his or her state securities regulator C) An advisor who manages over $100 million in assets D) An advisor who declines to be regulated by FINRA
Correct answer: C)
An advisor who manages over $100 million in assets
Question : Harold would like to purchase shares of a
large, established company. He will most likely make his purchase
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A) in the primary market.B) from an underwriter.C) in the secondary market.D) from the issuing corporation.
Correct answer: C)
in the secondary market.
Question : A stock market participant that buys shares of
stock in a secondary market and holds shares as part of its inventory is most likely a(n) A) stock exchange.B) independent advisor.C)
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broker-dealer.D) self-regulatory organization.
Correct answer: C)
broker-dealer.
Question : All of the following is (are) among the
responsibilities of FINRA EXCEPT A) educating investors.B) fostering market transparency.C) writing and enforcing rules governing the activities of all registered broker-dealer firms and registered brokers in the U.S.D) writing and enforcing rules governing the activities of all registered investment advisors.
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Correct answer: D)
writing and enforcing rules governing the activities of all registered investment advisors.
Question : Which of the following would most likely be
classified as a primary market transaction?A) A mortgage-backed security (MBS) purchased from an institution that originates the mortgage loans B) Equity shares purchased on the floor of the New York Stock Exchange C) A corporate bond purchased from an endowment fund that is liquidating D) Shares of preferred stock that are purchased from a dealer
Correct answer: A)
A mortgage-backed security (MBS) purchased from an institution that originates the mortgage loans