Pass the FINRA General Securities Representative Series-7 Questions and answers with ValidTests

not do so under any circumstance. New issues may not be distributed to Bubba or members of his immediate family.

machinery and pipe. These are tangible fixed assets and not associated with intangible drilling costs.

$100,000. This was a considerable amount of money in 1940.

revenue bonds. The security for a revenue bond depends on the revenue produced by the specific facility. Engineering estimates of constructions costs and potential traffic flow are critical.

it is somewhat below the standard minimum. The standard minimum current ratio for a manufacturing company is 2 to 1. The current ratio for this company is 1.92 (9,400,000 divided by 4,900,000).

no capital loss or income deduction is realized. The $20 premium is amortized over the ten-year life of the bond. After five years, half of the premium has been written down. The remaining premium is the same as the premium received upon selling the bond. The sale at 101 results in no loss or gain.

the point at which income exceeds deductions. This is the definition of “crossover”.

a custodian under UGMA. The Uniform Gifts to Minors Act requires securities registration in the name of the custodian for the benefit of the minor. A margin account does not qualify because such an account has all securities registered in street name.

all of the above. A profit sharing plan has tax deductible contributions and is designed to provide a retirement plan for participants. Income in the plan is tax-free until withdrawn.

six million. One right for each outstanding share is distributed.