Free FINRA Series-7 Practice Exam with Questions & Answers | Set: 6

a little less than 49.38. Bubba needs a calculator to divide the par value of the preferred stock by the price of the common stock. He then divides the result into the price at which the preferred stock is trading.50 divided by 47.50 = 1.05352 divided by 1.053 = 49.38.

face value. The price is 100.00 if the yield is the same as the coupon rate. A price of less than 100.00 means the yield is higher than the coupon rate. A price of more than 100.00 means the yield is lower than the coupon rate. The prices are a percentage of 100.00. However, treasury bonds and municipal bonds are not quoted in this way.

all are registered. All are registered with the SEC.

60 days. ERISA permits 60 days for rollovers.

$30. The current P/E is 10. If earnings are $3 and the P/E is still 10, the share price equals $30 ($3 x 10).

5.00%. The nominal yield is the coupon rate on the bond.

unit investment trust company. This is an example of a fixed trust, which is a type of unit investment trust.

120%. The toll facility usually sets rates to cover 120% of maintenance and debt service.

this is permissible. Firms may establish house rules as long as they are at least as strict as the minimum maintenance requirements. Reg T only dictates an initial requirement and does not address minimum equity.

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