FINRA Series-7 - Series 7 General Securities Representative Qualification Examination (GS)

a holding company dealing in mineral leaseholds. The other choices are the three classifications of investment companies under the 1940 act.

Securities Investor Protection Act of 1970. SIPC was established under this act.

0. Options do not have loan value, except for long-term LEAPS.

$28,000. The equity is the market value plus the credit balance.

tax anticipation bill. These obligations pay no interest and their maturity comes after corporate tax payment dates. They are accepted for redemption at face value prior to maturity on corporate tax payment dates to encourage purchase by corporations.

the 11-bond index. This index is the highest quality index and thus reflects the lowest average yield.

both A and B. These describe the activities a registered representative should undertake when a customer dies.

Series EE bonds. Because Series EE bonds are not negotiable, they have no collateral value. They cannot be sold back to the US government.

amortized over the life of the bond resulting in no loss at maturity. For tax purposes, premiums are amortized over the life of the bond. Some amount is taken each year.

$3,000. With Reg T at 50%, Bubba’s equity should be half of the $30,000 account value, which is $15,000. Since his equity is $18,000 Bubba has $3,000 of excess equity.