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Last Updated: Aug 21, 2026
No. of Questions: 400 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Seeks Business for the Broker-Dealer from Customers and Potential Customers | 7% | - Product-specific disclosures and regulatory requirements - Customer communication and solicitation rules - Standards for advertising and public communications |
| Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives | 9% | - Suitability rules and regulatory compliance - Account types and documentation requirements - Financial profile, risk tolerance, and investment objectives |
| Obtains and Verifies Customers’ Purchase and Sales Instructions; Processes, Completes and Confirms Transactions | 11% | - Order types and execution procedures - Trade settlement and confirmation rules - Regulatory requirements for transaction processing |
| Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Equity securities - Municipal securities - Debt securities and government obligations - Margin accounts and taxation - Investment companies, ETFs, and variable annuities - Direct participation programs - Recordkeeping and regulatory reporting - Options and derivative products |
1. Which of the following is not an intangible drilling cost?
A) salaries
B) supplies and fuel
C) machinery and pipe
D) repairs
2. Which of the following statements incorrectly describes US securities markets?
A) a government and agency market comprised of both short-term and long-term debt issues
B) a money market comprised of short-term debt and equity issues
C) a capital market comprised of long-term debt and equity issues
D) a municipal market comprised of tax-exempt issues of state and local governments
3. The FINRA markup policy applies to:
A) new issues of corporate securities
B) principal transactions in municipal bonds
C) agency sales OTC
D) mutual fund sales
4. Which of the following securities is traded only in the over-the-counter market?
A) preferred stocks
B) corporate bonds
C) closed-end investment companies
D) open-end investment companies
5. Bubba is age 54 and has investments in a retirement plan with his former employer valued at $104,500.
Bubba withdraws $25,000 to open a retail clothing store. Which of the following statements is true
regarding Bubba's tax consequences?
A) only regular income tax is due on the amount withdrawn
B) the entire account is terminated and $104,500 is immediately taxable
C) a penalty of 10% on all assets in Bubba's account is assessed
D) a penalty of 10% of the withdrawn amount is assessed
Solutions:
| Question # 1 Answer: C | Question # 2 Answer: B | Question # 3 Answer: C | Question # 4 Answer: D | Question # 5 Answer: D |
Jim
Mark
Osmond
Sandy
Walker
April
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