QUESTION: 161

Which of the following are duties of the specialist on an exchange floor?

I). executing limit orders if/when the limit price specified is reached
II). minimizing any imbalance in supply and demand for the stock(s) that the specialist is assigned
III). determining an opening price for each assigned stock every day
IV). serving as an auctioneer for the shares of the assigned stocks

I and II only
I, II, and IV only
I and IV only
I, II, III, and IV

Answer(s): D

Explanation:

All of the choices listed are duties of the specialist on an exchange floor. The specialist maintains a limit order "book" and executes those orders if/when the limit price is reached. The specialist is also charged with maintaining a fair and orderly market in the assigned securities, which means trading on his own account to ensure that the supply and demand of the stock's shares match. Additionally, the specialist is responsible for setting the opening price for the assigned stock each day and for serving as the auctioneer for the shares of the stock.

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QUESTION: 162

Which of the following is not a money market security?

commercial paper
negotiable certificates of deposit
common stock
Treasury bills

Answer(s): C

Explanation:

Common stock is not a money market security. Money market securities mature in one year or less. Common stock has no maturity.

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QUESTION: 163

On Friday, August 6th, the Board of Directors of Ecolab (ECI) announced that it would pay a dividend of $0.155 a share to shareholders of record as of Tuesday, September 21st.The dividend checks were scheduled to be mailed on Friday, October 15th. In this scenario, the payment date is:

Friday, August 6th.
Friday, September 17th.
Tuesday, September 21st.
none of the above.

Answer(s): D

Explanation:

The payment date is none of the choices listed. The payment date is the day the checks are scheduled to be mailed-Friday, October 15th.

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QUESTION: 164

Which of the following persons would not fall under the definition of "investment adviser," under federal guidelines?

an individual who advises only Oprah Winfrey on her investment portfolio and receives a nice salary for doing so.
a Denver-based, broker-dealer that is registered as a broker-dealer with the SEC and provides investment advice to members of the Denver Broncos, the Colorado Rockies, the Denver Nuggets, and the Colorado Avalanche organizations in exchange for box seats at their games. No monetary compensation is expected or given.
an individual who works as an agent for a broker and occasionally gives investment advice to clients who request it, but receives no additional compensation for doing so.
None of the above would fall under the definition of "investment adviser," as defined by the Investment Advisers Act of 1940.

Answer(s): C

Explanation:

An individual who works as an agent for a broker and occasionally gives investment advice to clients who request it but receives no additional compensation for doing so would not fall under the definition of "investment adviser," under federal guidelines. In 1987, Release IA -1092 expanded the definition to include individuals providing investment advice to entertainers or athletes, among others. The compensation need not be monetary. Box seats at athletic events would be considered compensation for advisory services.

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Free Series 6 Exam Braindumps (page: 41)

QUESTION: 161

Explanation:

QUESTION: 162

Explanation:

QUESTION: 163

Explanation:

QUESTION: 164

Explanation: