Section 1 Practice Quiz

1. The exchange-listed stock traded OTC primarily by institutional investors:

2. Setting a minimum level for number of shares to sold is known as:

3. A group of broker-dealers or investment that work with an issuer to bring its securities to the market and help them sell it to the public:

4. NYSE-listed stock transactions generally take place on the floor of the NYSE. However, when they occur off the floor, this is referred to as a:

5. Function under SEC’s oversight. Each SRO is accountable to the commission for enforcing federal securities as well as supervising securities practices within assigned jurisdiction (FINRA, CBOE, MSRB)

6. Self-regulatory organizations (SROs) include each of the following except:

7. The underlying equation of a corporation’s balance sheet is commonly expressed as:

8. The principal difference between a broker-dealer and an investment adviser is:

9. Treasury stock:

10. An SEC provision allows an issuer to register a new issue security without selling the entire issue at once. The issuer may sell limited portions of the issuer over three years without reregistering the security or incurring penalties is called:

11. The ADR is an investment vehicle best known for:

12. The term ‘Issuer’ may refer to:

13. Key economic variables that economists use to predict a new phase of the economy:

14. Transactions initiated by the client and not the agent is known as:

15. The Securities Investor Protection Corporation (SIPC) protects securities investors by providing: