Free Series-7 – General Securities Representative Qualification Examination (GS) Practice Test Question

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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
  

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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
  

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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
  

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  the rights of stockholders

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  the duties of the trustee

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  the obligations of the issuing corporation

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  both B and C
  

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  a hot issue

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  a mutual fund

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  a private placement

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  an exempt security
  

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  short combination

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  long combination

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  long straddle

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  short straddle
  

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  a $10 long-term capital loss is realized

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  the $10 loss is applied as a reduction against ordinary income

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  no capital loss or income deduction is realized

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  the $10 loss is applied against future profits in municipal securities
  

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  the Blue List

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  the daily Bond Buyer

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  the Wall Street Journal

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  Munifacts
  

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  0

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  50%

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  30%

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  the compliment of the FRB initial margin requirement for listed stocks
  

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  $1,000

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  $100

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  $10

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  $1
  

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  $94

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  $87

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  $86

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  $79
  

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  premiums on options for listed stocks are usually greater than on unlisted stocks

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  premiums on options of higher-priced stocks are usually greater than on lower-priced stocks

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  premiums on options of well-known companies are usually larger than on lesser-known companies

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  premiums on options of volatile stocks are usually larger than on less volatile stocks
  

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  75%

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  100%

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  120%

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  150%
  

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  riskless transactions

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  primary distributions

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  registered secondaries

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  mutual funds
  

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  net income from dividends and interest paid on securities in the fund’s portfolio

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  net gains on sales of portfolio securities

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  dividends, interest, and net gains on sales of securities

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  net profits from the investment company operation