Series 28: Chapter 6 Practice Questions

Chapter 6 Practice Questions

1. 1. When must a broker-dealer deliver a DK notice?
2. A. When it receives a confirmation for a transaction it does not recognize or accept
3. B. When an aged fail to deliver goes over 13 settlement days
4. C. When a firm does not recognize an account transfer on ACATs
5. D. When a firm cannot validate an account transfer on ACATs
6. 2. Identify the correct chronological order of the important dates relating to payment of stock dividends.
7. A. Declaration, Record, Ex-dividend, Payable
8. B. Record, Ex-dividend, Declaration, Payable
9. C. Declaration, Ex-dividend, Payable, Record
10. D. Declaration, Ex-dividend, Record, Payable
11. 3. Which of the following would not be considered a flat bond?
12. A. A zero coupon bond
13. B. A bond that is in default
14. C. A bond with accrued interest
15. D. A bond that settles on the same day that interest is paid
16. 4. When are due-bills used?
17. A. When a security traded before the ex-date is delivered on or before the record date
18. B. When a security traded after the ex-date is delivered on or before the record date
19. C. When a security traded before the ex-date is delivered too late for transfer on or before the record date
20. D. When a security traded after the ex-date is delivered too late for transfer on or before the record date
21. 5. Interest begins accruing on a when-issued contract sold in the secondary market:
22. A. On the delivery date
23. B. On the first business day after the last interest payment
24. C. On the trade date
25. D. On the record date
26. 6. An assignment does not constitute a good delivery when any of the following is true except:
27. A. It is not guaranteed by a participant in the NYSE Medallion or similar program
28. B. The signature does not exactly match the name on the certificate
29. C. The power of attorney resides in the U.S. but is not a U.S. citizen
30. D. The securities to be assigned have a foreign issuer
31. 7. Which of the following fac