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

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Showing 1–3 of 15 questions

Question 1

The Bubba Fund is a load mutual fund that offers a reinvestment plan.

What does this mean?

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    purchasers of fund shares must agree to make regular investments over a period of years
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    income, dividend, and capital gain distributions may be automatically used to purchase new shares of the fund
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    holders of fund shares are permitted to regularly purchase additional shares at the bid price
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    no federal income taxes are paid on dividends and capital gain distributions from the fund
Question 2

Which of the following does not decrease basis?

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  • ○

    cash or property paid out
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    depletion of real property
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    losses
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    income from extraordinary sources

Question 3

An ERISA benefits plan qualified under Section 401(a) of the Internal Revenue Code may:

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    purchase any IPO security provided the plan is not sponsored solely by a broker/dealer
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    apply for an exemption
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    only purchase securities rated “A” or better
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    purchase only securities issued by the state or federal government