Practice Quiz

FINRA Series 7 Exam Prep - Question List

Select how would you like to study

Study Mode Free Daily Question Test Mode
1.

The Bubba Corporation has 900,000 outstanding shares and holds 100,000 shares as treasury stock. At the end of the third quarter $450,000 is distributed as a dividend on the common. How much is the dividend per share?

  1. $0.05
  2. $0.45
  3. $0.50
  4. None of the above
See answer
2. In mid-September, Bubba sells one XYZ February 50 call at $6. It subsequently expires without being exercised. How is the premium taxed?
  1. Bubba’s cost of the underlying stock is reduced
  2. the $600 premium is a capital gain
  3. the $600 premium constitutes ordinary income
  4. the $600 premium is rolled over into another XYZ call with the next longest expiration date.
See answer
3. In June, Bubba bought 100 shares of XYZ at $35. In November, he bought a listed put in XYZ with a $35 strike price and a July expiration for a premium of $600. In April, Bubba exercises the put option and uses his stock for delivery. What is his resulting tax consequence?
  1. a $600 capital loss
  2. neither profit nor loss
  3. cannot be determined without knowing the market price of XYZ upon exercise
  4. this is a wash sale and cannot be included in the investor’s tax calculations
See answer
4. Which of the following is an acceptable deposit to answer an NYSE maintenance call?
  1. US savings bond
  2. SMA
  3. US treasury notes
  4. all of the above
See answer
5. Which of the following is the least important method of money control exercised by the Federal Reserve?
  1. reserve requirements
  2. open market operations
  3. discount rate
  4. Regulation T
See answer

Select how would you like to study

Study Mode Free Daily Question Test Mode