Series-7 Exam Dumps | Big Easy Investment Banking, Inc., participates in a Western account underwriting of $10 million of municipal

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Question 38/390

Big Easy Investment Banking, Inc., participates in a Western account underwriting of $10 million of municipal bonds by agreeing to underwrite 10% of the issue. One week later, $4 million remains unsold but Big Easy has distributed $1.5 million of bonds.
What is the liability of Big Easy remaining in the account?

A. $0

B. $400,000

C. $600,000

D. $1,000,000

Question List (390q): Question 1: Which of the following are sources of funding for limited pa...; Question 2: The Bubba Corporation is offering stock to the public for th...; Question 3: Which of the following sources provides news of prospective ...; Question 4: Which of the following types of investment companies pays ou...; Question 5: Which of the following option positions is indicative of the...; Question 6: The net investment income of an open-end investment company ...; Question 7: Which of the following statements incorrectly describes US s...; Question 8: For a self-employed individual's retirement plan, ERISA perm...; Question 9: Which of the following is a benefit of Section 8 low-income ...; Question 10: Municipal bond brokers generally conduct the following:...; Question 11: An option that permits the holder to exercise the contract o...; Question 12: Under what circumstances may a municipal securities dealer g...; Question 13: When a corporation dissolves, who gets paid first?...; Question 14: A wealth investor gives Bubba discretion to invest $50,000 f...; Question 15: Which of the following is identified as a funded debt instru...; Question 16: The Securities Act of 1933 provides for:...; Question 17: Bubba has a short margin account with a short market value o...; Question 18: Bubba buys an OTC stock from a firm that is a market -maker ...; Question 19: A market-maker has purchased a particular stock over a perio...; Question 20: Bubba has several accounts at a brokerage firm. 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Bubba's account contains long po...; Question 87: The term "mutual fund" is popularly used for which of the fo...; Question 88: A registered representative is given a limited trading autho...; Question 89: Regulation T is set at 50%. Bubba's account contains long po...; Question 90: Bubba buys a bond issued at par with a 5% coupon that is con...; Question 91: What type of mutual fund would invest in equities and bonds?...; Question 92: The Bubba Corporation has 900,000 of common outstanding and ...; Question 93: The registration requirements of the federal securities acts...; Question 94: Which of the following is true of treasury stock?...; Question 95: Which are the primary considerations in evaluating the worth...; Question 96: Under what conditions may an FINRA member firm sell an IPO t...; Question 97: Which of the following does not issue debt securities that t...; Question 98: All sales literature and advertising relating to investment ...; Question 99: Bubba buys one XYZ September 50 call at $7 and sells one XYZ...; Question 100: What rate of return takes into consideration appreciation or...; Question 101: A registered representative privately assures a customer tha...; Question 102: When a member firm buys or sells securities directly as prin...; Question 103: Under what circumstances may a registered investment company...; Question 104: Which of the following is considered an intangible asset?...; Question 105: Bubba is a registered representative who wishes to buy share...; Question 106: Bubba buys a municipal bond at 102 and holds it ten years to...; Question 107: A syndicate manager has just been informed that its bid has ...; Question 108: Which of the following pays interest at maturity only?...; Question 109: Bubba sells short 100 XYZ at $60 and makes the required Regu...; Question 110: Bubba's margin account has $1,000 of SMA. 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In November,...; Question 171: Who obtains and pays the municipal bond attorney rendering a...; Question 172: Bubba buys 100 shares of XYZ stock at $40 per share and sell...; Question 173: The Bubba Insurance Company is not incorporated. It consists...; Question 174: Under which of the following conditions are homeowners most ...; Question 175: What is the possible reward for investing in raw land?...; Question 176: When depositors withdraw money from savings institutions to ...; Question 177: A mutual fund letter of intent may permissibly be predated f...; Question 178: In regard to discretionary accounts, which of the following ...; Question 179: A company earns $6 per share and pays out 20% in common stoc...; Question 180: A short sale can be made in which of the following types of ...; Question 181: Bubba has a short margin account with a short market value o...; Question 182: Which of the following best describes depreciation?...; Question 183: The agreement between the members of a syndicate and the man...; Question 184: In a best efforts distribution of a new non-exempt issue, a ...; Question 185: Bubba is opening a margin account with a member organization...; Question 186: A corporation makes a rights offering to raise $10 million o...; Question 187: What percentage load is associated with a mutual fund quoted...; Question 188: A case of leverage is:; Question 189: An issuer is most likely to request an investment letter fro...; Question 190: Level III of NASDAQ provides which of the following?...; Question 191: What Federal Reserve Board regulation governs the extension ...; Question 192: Which of the following is not in the subscription agreement ...; Question 193: A revenue bond is issued by a state agency. 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He may convert his SEP-IRA...; Question 226: Feasibility studies and engineering surveys are most necessa...; Question 227: What is the term applied to a classification of CMO securiti...; Question 228: The definition of debentures is:...; Question 229: The FINRA Conduct Rules permit a transaction made "seller's ...; Question 230: Registration of open-end investment company shares with the ...; Question 231: Which of the following holders of unregistered stock is prec...; Question 232: Which of the following is a right for shareholders of common...; Question 233: Most publicly owned securities are:...; Question 234: Bubba entered an order to sell long 100 shares of XYZ at 38....; Question 235: In which of the following situations may exemption from comp...; Question 236: At the time it underlying stock is trading at 48, Bubba buys...; Question 237: In a securities underwriting a participating firm is said to...; Question 238: In a 401(k) plan, when are employee's contributions of compe...; Question 239: A buy-in of a customer's sale transaction is mandated if the...; Question 240: Which of the following securities has the highest amount of ...; Question 241: Which of the following best describes phantom income?...; Question 242: When the Federal Reserve lowers reserve requirements, what i...; Question 243: Who owns a corporation?; Question 244: Which of the following is not good delivery on a sale of 470...; Question 245: A mutual fund custodian is paid according to which of the fo...; Question 246: Which of the following may occasionally be purchased at a di...; Question 247: Bubba has not existing positions in his account and writes 1...; Question 248: Which of the following would not normally be a function of a...; Question 249: A call option is in the money when the market value of the u...; Question 250: Which of the following is not found in the final prospectus?...; Question 251: A corporation makes a rights offering to raise $10 million o...; Question 252: Bubba is age 54 and has investments in a retirement plan wit...; Question 253: Which of the following is least relevant in evaluating the s...; Question 254: Bubba maintains an individual cash account as well as a join...; Question 255: Under Regulation T of the Federal Reserve, when may a broker...; Question 256: A treasury obligation having no fixed rate of interest with ...; Question 257: Big Guns Municipal Bond Dealer Corporation buys 100M of 7% 2...; Question 258: Bubba owns a subordinated debenture in a company that is liq...; Question 259: Bonds are most often quoted as a percentage of:...; Question 260: Although a corporation has no earnings in a particular year,...; Question 261: Smart Company, Inc., has cash it intends to use in six month...; Question 262: Which of the following is not an attribute of US treasury bi...; Question 263: What is the loan value on a call option held in a customer's...; Question 264: When an index option is exercised, settlement is made by:...; Question 265: Which of the following stock exchanges is not registered wit...; Question 266: The net asset value of a mutual fund was $9.72 last month. 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Bubba's account contains long po...; Question 279: A company may pay a declared dividend in which of the follow...; Question 280: An investor purchasing a corporate bond regular way will hav...; Question 281: A bank or trust company that is acting as custodian for a mu...; Question 282: Smart Guys Securities Corporation has given a workable bid t...; Question 283: Assuming that the information contained in a registration st...; Question 284: Bubba purchases 100 shares of XYZ at 78 and, on the same day...; Question 285: Bubba buys a US treasury bond. The interest he earns is:...; Question 286: Which of the following has the least active secondary market...; Question 287: Which of the following has the greatest risk?...; Question 288: In June, Bubba bought 100 shares of XYZ at $35. In November,...; Question 289: In comparing the premium cost of a LEAPS option with a premi...; Question 290: Which of the following is available both to owners of stock ...; Question 291: Interest rates rise from 5.10% to 5.30%. 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If...; Question 306: Which of the following must be true in order for an offering...; Question 307: Which of the following best describes depreciation?...; Question 308: A stock with a current P/E of 17 is selling at $74.50 per sh...; Question 309: Municipalities are most likely to issue notes for which of t...; Question 310: Which of the following organizations usually has a prominent...; Question 311: Bubba Corporation issued bonds that pay interest on January ...; Question 312: Which of the following statements about the custodian for an...; Question 313: XYZ Corporation earned $2 per share last year and is selling...; Question 314: Big Easy Investment Banking, Inc., is participating in an Ea...; Question 315: When opening a brokerage account for a customer, a registere...; Question 316: Bubba owns 200 shares of XYZ at $90, and wishes to hedge the...; Question 317: Which of the following does not affect the public offering p...; Question 318: In the sale of open-end investment company shares, the amoun...; Question 319: Under a leaseback arrangement used to finance construction o...; Question 320: In the distribution of a new issue underwriters or selling g...; Question 321: A typical money market instrument carries which of the follo...; Question 322: What does the bond buyer placement ratio represent?...; Question 323: Bubba is concerned about the liquidity of a possible municip...; Question 324: An offering price of 102 plus accrued interest applies to wh...; Question 325: In which of the following is not a case where a deed to a co...; Question 326: What is represented by the net investment income of an open-...; Question 327: Which securities do not receive dividends?...; Question 328: Bubba sells 100 shares of XYZ short at $58 and buys 1 XYZ Ma...; Question 329: Bubba buys municipal bonds with a $100,000 principal amount ...; Question 330: The general purpose of the Securities Act of 1933 is to:...; Question 331: Call loans made by banks to broker/dealers are generally for...; Question 332: Which of the following is not provided for by Blue Sky laws?...; Question 333: In June, Bubba bought 100 shares of XYZ at $35. 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Which of the following ma...; Question 381: An investment company incapable of issuing a long-term debt ...; Question 382: In the offering of new securities, members of the syndicate ...; Question 383: Which of the following securities is traded only in the over...; Question 384: Municipal syndicate allocation procedures are described in w...; Question 385: Bubba wants to buy 500 shares of an NYSE listed stock at 38....; Question 386: Bubba opens a new account with a broker/dealer and asks for ...; Question 387: Which of the following securities provides the longest term ...; Question 388: How much money is a concession of 3/8 worth for one municipa...; Question 389: What is the name for the rate of discount from the list pric...; Question 390: Bubba and his wife, Bubbette, maintain a joint account with ...

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