Question 1

Level III of NASDAQ provides which of the following?

Options :

A : representative quotations

B : firm quotation

C : subject markets

D : workout markets

Answer: B

Question 2

Assuming that the information contained in a registration statement is complete and accurate, the registration statement becomes effective:

Options :

A : 10 days after receipt by the SEC

B : 20 days after receipt by the SEC

C : 30 days after receipt by the SEC

D : only after the SEC specifically clears the issue in writing to the principal underwriter

Answer: D

Question 3

Bubba plans to borrow some money and pledge securities as collateral. Which of the following can he not use as collateral?

Options :

A : Series EE bonds

B : US treasury bills

C : US treasury notes

D : US treasury bonds

Answer: A

Question 4

Securities may be sold under SEC rule 144 provided that the following conditions are met:

Options :

A : the company files regular financial data with the SEC

B : they are sold in agency transactions only

C : they are sold in principal transactions only

D : both A and B

Answer: A

Question 5

A call option is in the money when the market value of the underlying stock is:

Options :

A : lower than the strike price of the option

B : the same as the strike price of the option

C : higher than the strike price of the option

D : higher than the strike price plus the premium

Answer: C

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