For what time period does a Form 144 remain in effect?
Bubba opens a new account with a broker/dealer and asks for a copy of the firm’s financial statement. If the firm has not been subject to a formal audit by an independent public accountant for quite some time, what should it do in response to the request?
The FINRA markup policy requires that over-the-counter transactions with a customer be at:
In early September, Bubba buys 100 shares of XYZ for $83 per share and simultaneously writes one XYZ March 90 call for $4.
What is the price for XYZ stock at which Bubba will breakeven?
Bubba has a cash account and fails to make full and prompt payment for a purchase. The broker liquidated the transaction. Two weeks later, Bubba places another buy order for 100 shares of XYZ.
What does the broker do?
Big Guns Municipal Bond Dealer Corporation buys 100M of 7% 20-year GO bonds at par. The bonds are marked up and immediately re-offered for sale.
Which of the following re-offering prices would probably be deemed excessive?
Bubba Corporation has 3,500,000 shares of common stock outstanding and its trading volume in the few weeks has been as follows:
Week 1 - 43,000
Week 2 - 30,900
Week 3 - 37,500
Week 4 - 42,600
Week 5 - 33,000 (the most recent week)
If an affiliated person wanted to liquidate some of his holding of 100,000 shares pursuant to SEC Rule 144, how many shares could he sell?
To accommodate a customer’s order to buy an over-the-counter stock, a broker/dealer is permitted to:
Bubba holds 200 shares of common stock in a utility company and receives rights to subscribe to an additional 100 shares at $20. The utility company is raising $40 million of new capital.
How many rights does Bubba receive?
Under what conditions may an FINRA member firm sell an IPO to an employee of another broker/dealer?
