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Last Updated: Jun 13, 2026
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1. Bubba plans to borrow some money and pledge securities as collateral. Which of the following can he not
use as collateral?
A) US treasury bills
B) US treasury notes
C) Series EE bonds
D) US treasury bonds
2. Under what conditions may an FINRA member firm sell an IPO to an employee of another broker/dealer?
A) if the employing broker/dealer guarantees that resale of the securities acquired by its employee will be
restricted for two years
B) under no circumstances
C) if the amount of the purchase is small and the transaction accords with the employee's normal
investment practice
D) if the member firm notifies the other broker/dealer of the transaction
3. A short sale can be made in which of the following types of accounts?
A) special cash account
B) margin account
C) special memorandum account
D) a custodian account
4. Which of the following is a right for shareholders of common stock?
A) the right to dividends
B) the right to have the stock price increase
C) both B and C
D) the right to vote about important matters of the company
5. Crossover is best defined as:
A) the point at which the program becomes profitable
B) the profit of limited partners exceeding profit of general partners
C) the point at which income exceeds deductions
D) the fact that there are more general partners than limited partners
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: B | Question # 4 Answer: D | Question # 5 Answer: C |
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