Which of the following describes a prohibited practice in the sale of shares of investment companies?
I. Sandy Slacker hands her client the fund's prospectus and tells him that the prospectus will provide him all that he needs to know about loads and fees associated with the fund.
II. Elliot Eager tells a client who has an investment objective that includes current income that a certain bond fund has a current yield of 8% and provides the client with a prospectus so that the client can peruse the average annual returns that the fund has generated in past years when the client has the time.
III. After explaining all the fees and loads involved in two different bond funds as well as the difference between current yield and total return, Patty shows the client the data on the average annual returns that the two bond funds provided. She explains to the client that the municipal bond fund has a lower yield than the similar-risk corporate bond fund because the interest income the client will receive from the municipal bond fund will be free from federal taxation, while the interest income on the corporate bond fund is fully taxable.

• A. I and III only
• B. All the choices describe prohibited practices in the sale of shares of investment companies.
• C. I and II only
• D. I only

解説: (GoShiken メンバーにのみ表示されます)

Which of the following statements best explains the difference between an agent and a broker-dealer?

• A. A broker-dealer must be licensed in the state in which he conducts business, but there are no separate licensing requirements for agents.
• B. An agent is an individual who represents a broker-dealer or an issuer and buys and sells securities he does not own in return for a commission on the transactions he executes. A broker-dealer may also buy and sell securities for his own portfolio, in which case the broker-dealer enjoys any price appreciation on those securities.
• C. Agents are engaged exclusively in the purchase and sale of stocks whereas broker-dealers also buy and sell bonds and option contracts.
• D. Agents conduct their business exclusively in the secondary market, while broker-dealers also operate in the primary market.

解説: (GoShiken メンバーにのみ表示されます)

Mr. Bigwig, CEO of HiGrowth Corporation, meets with the president of BigFee Investment Bankers and arranges for BigFee to underwrite an Initial Public Offering (IPO) for the firm.
When the IPO comes to market, GetErDone Broker-Dealers is part of the selling group, which handles the sale of the stock to the public. In this scenario, which party is the issuer?

• A. HiGrowth Corporation
• B. BigFee Investment Bankers
• C. GetErDone Broker-Dealers
• D. Mr. Bigwig

解説: (GoShiken メンバーにのみ表示されます)

"T + 3" refers to

• A. the form that is filled out and sent to the client confirming that the trade has been executed.
• B. the fact that the settlement date will be three business days after the trade date, which is the "regular way settlement" for transactions involving stocks and corporate and municipal bonds.
• C. a procedure to minimize the potential for money laundering.
• D. the form, also known as a "trade ticket," that is filled out when an order is entered into the market.

解説: (GoShiken メンバーにのみ表示されます)

An arrangement wherein a terminally ill person sells a second party his life insurance policy at a discount from its face value, giving the buyer the right to the policy's face value when the seller dies is called a:

• A. life straddle.
• B. death warrant.
• C. viatical settlement.
• D. deceased option.

解説: (GoShiken メンバーにのみ表示されます)