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

permission granted to the general partner to act outside the partnership agreement. The limited partners may approve of the general partner pursuing an act that is contrary to the partnership agreement.

the tax collector. Taxes always have preference over any other creditors.

it must be sold only to bona fide residents of one state. Under Rule 147 intrastate offerings are sold only to residents of one state and cannot be sold outside that state for nine months. All the other choices are incorrect about the rule.

breakout. An upward move through a resistance level that is confirmed by heavy volume is called a breakout.

stopping stock. This is the definition of the term “stopping stock”.

$6,000. Divide Bubba’s excess equity by the Reg T margin requirement of 50%.

adjustment bonds. These bonds are also known as income bonds. Interest is paid only if there is income.

preemptive rights. Holders of ADRs do not have preemptive rights, although they have most other rights of shareholders, including the right to vote for board members-even a mother-in-law

liquidate the securities or otherwise cancel the transaction. Reg T requires the position closed if the customer fails to comply with the rules. An extension may be granted, but not by the member firm. Only an exchange or the FINRA grants extensions for bona fide reasons.

expected average life. The average life of a CMO is the length of time that each dollar of invested principal is expected to remain outstanding. Pricing of CMOs is based upon this factor.