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Last Updated: Jun 19, 2026
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1. With respect to the public offering of securities by an underwriting syndicate, which of the following is
true?
A) the reallowance is greater than the selling concession
B) the selling concession is greater than the underwriting spread
C) the underwriting spread is greater than the selling concession
D) the reallowance is greater than the underwriting spread
2. Bubba Corporation has a profit sharing plan. The company president, Bubba, is receiving the maximum
plan contribution amount. The corporation has one other employee, who is eligible for the plan. If this
person earns $12,000 per year, how much must be deposited in the plan for the employee?
A) $6,000
B) $12,000
C) $1,800
D) $3,000
3. How often must Investment companies issue financial statements to shareholders?
A) monthly
B) quarterly
C) semi-annually
D) annually
4. An ERISA benefits plan qualified under Section 401(a) of the Internal Revenue Code may:
A) purchase only securities issued by the state or federal government
B) apply for an exemption
C) purchase any IPO security provided the plan is not sponsored solely by a broker/dealer
D) only purchase securities rated "A" or better
5. The Securities Act of 1933 provides for:
A) establishment of the Securities and Exchange Commission
B) regulation of new issues of securities
C) extension of credit in the securities industry
D) all of the above
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: D | Question # 3 Answer: C | Question # 4 Answer: C | Question # 5 Answer: B |
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