No: 102Which of the following bonds would not be considered investment grade?
Answer(s): A
A municipal bond with a BB rating would not be considered investment grade. Regardless of whether a bond is issued by a state or local government or a corporation, to be considered investment grade it must be rated BBB or higher.
Mr. Walt Street has observed that a Treasury note maturing in November of 2019 and paying a 3.375% coupon has a bid price of 105:25 and an ask price of 105:26.In this instance, what is the dealers' spread for every $1,000 of par value?
For every $1,000 of par value, the dealers' spread is $0.31250. The prices of Treasury bonds and notes are quoted in 32nds of a dollar per $100 of par value. Therefore, the bid price is $105 25/32, or $105.78125, per $100 of par, and the ask price is $105 26/32, or $105.8125 per $100 of par. The difference between the two is the dealers' spread per $100 of par value, or $0.03125. The question asks for the dealers' spread for every $1,000 of par value, so this must be multiplied by 10: $0.03125 x 10= $0.31250.
A table providing detailed information on the various fees and expenses charged by a mutual fund can be found in the fund's:
Answer(s): B
A table providing detailed information on the various fees and expenses charged by a mutual fund can be found in the fund's prospectus. The other choices provide a wealth of information regarding such items as investment strategies, fund holdings, and financial statements, however.
Which of the following persons is not subject to the fingerprinting requirements of the Securities Exchange Act of 1934?I). a registered transfer agent of a securities exchangeII). a firm that engages only in the sale of mutual fund sharesIII). a receptionist at a brokerage firm who answers phones and directs calls to the agents employed by the firmIV). a market maker in the over-the-counter market
Only Selections II and III are not subject to the fingerprinting requirements of the Securities Exchange Act of 1934. Firms that engage only in the sale of open-end investment company (mutual fund) shares, as described in Selection II, are exempt; and employees who do not engage in the sale of securities or activities involving any aspect of the securities or monies of a non -exempt firm are exempt, which is the case for the receptionist at the brokerage firm described in Selection III.
Dr. Floss has just earned his dental degree and wants to establish a private dental practice. He has had a bit of sticker shock at the price of all the equipment this will require him to purchase. Because he still has a large student loan to repay, he has been unable to borrow any money from his financial institution. To raise capital, he decides to sell fifty ownership interests of $1,000 each to interested investors and takes out a full page ad in a local newspaper to advertise this investment. In this scenario:
Answer(s): C
If Dr. Floss offers fifty ownership interests of $1,000 each for sale to interested investors, he has violated the provisions of the Securities Act of 1933, which requires that new securities be registered unless they are exempt from registration, and may face civil penalties. There is no evidence that he has made any misrepresentations or otherwise attempted to defraud investors, so he is not subject to criminal fraud charges. The ownership interests do fall under the definition of a security.
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