Tag: series 82

Study Question of the Week: November 20, 2013 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 24, Series 26, Series 62, and Series 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6, Series 7, Series 24, Series 26, Series 62, and Series 82): 

Which regulation empowers the Federal Reserve to regulate credit associated with the purchase of securities?

Answers:

A. The Exchange Act of 1934

B. The Securities Act of 1933

C. Regulation T

D. Regulation U

Correct Answer: A. The Exchange Act of 1934

Rationale: Section 7 of the Exchange Act of 1934 empowers the Federal Reserve to regulate credit associated with respect to the purchase of securities, also known as margin. Its intent is to manage the amount of speculative activity that can be applied to securities transactions and to manage the supply of money in the credit markets.The Federal Reserve responded to its new powers by enacting Regulation T, which places credit restrictions on broker-dealers by establishing initial margin requirements and prescribing how a margin transaction must be maintained. Initial margin requirements are currently set at 50%. Regulation T was soon followed in 1936 by Regulation U, which imposes credit restrictions on other lenders that would finance margin transactions, such as banks. Regulation U forbids banks from extending more credit than the “maximum loan value” for margin securities, which it identifies as 50% of the stock’s current market value.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Week: November 13, 2013 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 62, Series 65, and Series 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6, Series 7, Series 62, Series 65, and Series 82): 

Which of the following statements are true about government agency-issued bonds?

I. They typically have a lower face value than other bonds
II. Interest is paid on a monthly basis
III. The maturity date is always specified
IV. They are known as high-risk investments

Answers:

A. II and III

B. III and IV

C. II only

D. I and II

Correct Answer: C. II only

Rationale: Government agency-issued bonds typically have higher face value than other bonds and their maturity dates are often not specified. Interest is typically paid on a monthly basis and these bonds are generally low-risk investments.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Week: October 30, 2013 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 62, Series 65, Series 66, Series 79, and Series 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6, Series 7, Series 62, Series 65, Series 66, Series 79, and Series 82): 

Johnny owns several U.S. Treasury Notes, he reads in the paper that the discount rate has fallen. What can Johnny safely infer about his Treasury Notes?

Answers:

A. On the market, the price of his Treasury Notes has fallen

B. On the market, the price of his Treasury Notes has risen

C. His annual interest from the Notes will increase

D. His annual interest from the Notes will decrease

Correct Answer: B. On the market, the price of his Treasury Notes has risen

Rationale: When the discount rate falls, this suggests that interest rates in general have lowered. This will make the Treasury Notes that Johnny is holding more attractive to buyers because they paid a higher interest rate than what new Treasury Notes are paying. Thus, the price of his Treasury Notes will have risen on the secondary market because buyers are willing to pay a premium for them. The annual interest paid on Treasury Notes is fixed so it will neither increase nor decrease.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

New Series 82 On-Demand Study Course

We are proud to announce the release of a brand new on-demand study course for the Series 82, FINRA Limited Representative-Private Securities Offerings Qualification Exam. Continue reading

Series 82 On-Demand Study Course

We are proud to announce the release of a brand new on-demand study course for the Series 82, FINRA Limited Representative-Private Securities Offerings Qualification Exam. Earlier this year we released a brand new study guide to pair with our online exam simulator and now we are happy to further add to our product offerings with this on-demand study course.

The Series 82 On-Demand Study Course is split up into sections, to mirror the Series 82 exam outline and can be purchased as an individual product or as part of our Premium Study Package. Here is an outline of the videos that are included in our on-demand offering:

Section 1: Characteristics of Corporate Securities

Equity Securities – Stock
Debt Securities – 1
Debt Securities – 2
Other Equity Securities

Section 2: Regulation of the Market for Registered and Unregistered Securities

Types of Offerings
Investment Banking Communication
Public Offering Rules
Safe Harbors from Registration
Private Placements
Introduction to the Secondary Market
Prohibited Trading Practices

Section 3: Analyzing Corporate Securities and Investment Planning

Economics
The Income Statement
The Balance Sheet
The Cash Flow Statement

Section 4: Handling Customer Accounts and Industry Regulations

Customer Accounts
General Industry Standards
General Industry Standards – 2

About the Series 82 exam:

The Series 82 FINRA Limited Representative-Private Securities Offering Qualification Examination, qualifies an individual for the sale of private placement securities as part of a primary offering. The exam is 100 questions in length and is taken over a period of  2.5 hours; a score of 70% is required to pass the exam.

Study Question of the Week: October 16, 2013 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 7, Series 62, Series 65, Series 79, Series 82 and Series 99. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 7, Series 62, Series 65, Series 79, Series 82, and Series 99): 

Branch Environmental Industries is trading at $2 per share and there are 35 million shares of common stock outstanding. The management and board of directors have decided that in order to make the stock more attractive to institutional investors, the share price needs to rise to $5. In order to accomplish that, the company could do which of the following?

Answers:

A. Initiate a 2.5 for 1 stock split which will increase the number of common shares outstanding to 87.5 million.

B. Initiate a 2.5 for 1 stock split which will reduce the number of common shares outstanding to 14 million.

C. Initiate a 1 for 2.5 reverse stock split which will increase the number of common shares outstanding to 87.5 million.

D. Initiate a 1 for 2.5 reverse stock split which will reduce the common shares outstanding to 14 million.

Correct Answer: D. Initiate a 1 for 2.5 reverse stock split which will reduce the common shares outstanding to 14 million.

Rationale: In order to increase the share price to $5, the company would initiate a reverse stock split, that is reduce the number of shares. A stock split would have the opposite effect, it would increase the number of shares and proportionately lower the share price even further which is not what the company wants. In this case, the reverse stock split would be 1 for 2.5 . Mathematically it would be $2 per share/.4 = $5 per new share price. Thus shareholders would give up two-and-one-half $2 shares and they would receive one $5 share in return. The number of shares common shares outstanding would decrease likewise from 35 million to 14 million (35/2.5 = 14).

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Week: September 10, 2013 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 24, Series 62, and Series 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Question (Relevant to the Series 24, Series 62, and Series 82): 

Sparkly Jewelry Inc. uses a finder to help identify potential investors for a private placement of securities. Which of the following activities would not require the finder to register as a broker-dealer?

Answers:

A. The finder invites potential customers to an informal talk describing the seminar

B. The finder receives a commission when a potential investor invests in the private placement

C. The finder introduces potential investors to the issuer

D. The finder describes the benefits of the private placement to investors

Correct Answer: C.

Rationale: Issuers sometimes use finders to locate potential investors for private placements. Finders may be registered broker-dealers, but they do not need to be. Finders are not required to be registered broker-dealers if they limit their activities to introducing potential investors to an issuer. They cannot promote or recommend securities to a prospective investor, develop terms, or negotiate for either the issuer or the investor.Their compensation must be a flat fee or a percentage fee that is not contingent on the closing of a securities sale. Form D requires issuers to disclose any finder’s fees.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

 

Study Question of the Week: August 27, 2013 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 24, Series 26, Series 62, and Series 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Question (Relevant to the Series 6, Series 7, Series 24, Series 26, Series 62, and Series 82): 

Which of the following best describes Regulation U?

Answers:

A. Places credit restrictions on broker-dealers by establishing initial margin requirements and prescribing how a margin transaction must be maintained

B. Empowers the Federal Reserve to regulate credit associated with respect to the purchase of securities, also known as margin

C. Requires broker-dealers to be registered

D. Imposes credit restrictions on non-broker-dealer lenders that may finance margin transactions such as banks

Correct Answer: D.

Rationale: Section 7 of the Exchange Act of 1934 empowers the Federal Reserve to regulate credit associated with respect to the purchase of securities, also known as margin. Its intent is to manage the amount of speculative activity that can be applied to securities transactions and to manage the supply of money in the credit markets.

The Federal Reserve responded to its new powers by enacting Regulation T, which places credit restrictions on broker-dealers by establishing initial margin requirements and prescribing how a margin transaction must be maintained. Initial margin requirements are currently set at 50%. Regulation T was soon followed in 1936 by Regulation U, which imposes credit restrictions on other lenders that would finance margin transactions, such as banks. Regulation U forbids banks from extending more credit than the “maximum loan value” for margin securities, which it identifies as 50% of the stock’s current market value.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

The NEW Solomon Exam Prep Guide to the Series 82 is here!

Do TACs, QIBs and PIPES give you a headache? Do you need to take the FINRA Series 82 exam? If you can answer yes to both questions, Solomon Exam Prep can help relieve your headache with our new guide to the Series 82. Continue reading

Do TACs, QIBs and PIPES give you a headache? Do you need to take the FINRA Series 82 exam? If you can answer yes to both questions, Solomon Exam Prep can help relieve your headache with our new guide to the Series 82.

The Solomon Exam Prep Guide: Series 82 Limited Representative Private Securities Offerings Qualification Examination offers a clear, no-nonsense guide to the Series 82 exam. With detailed explanations, visual aids, and example questions, the Solomon Exam Prep Guide, in conjunction with the Solomon Series 82 Exam Simulator, will get you on track to passing the Series 82 in no time.

“The Series 82 exam is for private securities offerings in the primary market, and with the growth in private securities, we recognized that our customers needed a Series 82 guide” said Jeremy Solomon, president and founder of Solomon Exam Prep. “If you only sell private securities, why take the Series 7 (250 questions) if you can take the Series 82 (100 questions) instead?”

Solomon Exam Prep provides study materials and classes for securities and insurance licensing exams. Along with the Series 82, Solomon Exam Prep helps financial professionals study for the Series 7, 6, 63, 65, 66, 24, 26, 55, 62, 79, 99, and Life & Health Insurance exams. Solomon Exam Prep offers study guides, audio guides, exam simulators, online classes and private tutoring to help our students pass the first time. Visit our website http://solomonexamprep.com or contact us at 503-601-0212 if you would like more information about how we can help you or your employees pass these challenging and important exams!

“Thanks to Solomon Test Prep, I passed the Series 79, 7, 63 and 82 exams. Your excellent software made all the difference!”

-Constantine Valhouli, New York, NY

 “I used your materials for the Series 79, Series 82, and the Series 63 and scored all in the mid-80% range. Thanks for your help and support!”

-Carlie Headapohl, San Diego, CA

“Passed with an 88%. The practice test questions were good preparation for the actual exam. I also used a paper binder produced by another company. In comparison, Solomon’s practice test questions were much closer to the actual test.”

-Karin Lystad, Chicago, IL

“Thanks Professor Solomon! The online exam simulator guided me comfortably to a solid passing grade on my first attempt.”

-Steve Troy, New York, NY

Study Question of the Week: July 2, 2013 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 24, Series 26, Series 62, Series 79, Series 82 and Series 99. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Question (Relevant to the Series 6, Series 7, Series 24, Series 26, Series 62, Series 79, Series 82 and Series 99): 

A registered representative wishes to participate in a securities transaction outside of the jurisdiction of his firm. He does not receive compensation for the transaction. Which of the following is true?

Answers:

A. The registered representative needs to inform his firm prior to participating and adhere to any conditions that the firm puts on the rep in connection with the rep’s participation

B. The registered representative does not need to inform his firm because he is not receiving compensation

C. The registered representative needs to inform his firm and await permission before participating in the securities transaction

D. The registered representative cannot participate in any outside securities transactions because it is considered selling away and it is prohibited

Correct Answer: A.

Rationale: A “private securities transaction“ shall mean any securities transaction outside the regular course or scope of an associated person’s employment with a member. A registered representative who wishes to participate in private securities transactions needs to notify his firm and await permission if he will be receiving compensation. If he will not receive compensation, he must notify his firm. The firm shall provide the representative prompt written acknowledgement of the notice and at the firm’s discretion require the person to adhere to specified conditions in connection with the rep’s participation in the transaction.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.