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NEW QUESTION: 1
Which of the following activities are prohibited by FINRA when a representative is selling shares of a
mutual fund?
I. recommending that a client purchase shares of a mutual fund prior to its ex-dividend date, so that the
client will receive the dividends when they are distributed unless this recommendation is justified by the
specific circumstances of the client
II. telling a client that a mutual fund that has only a contingent deferred sales charge is a no load fund
III. telling a client that the interest he earns on a municipal bond fund will be free from federal taxation
IV. refraining from placing the customer's order promptly in order to profit himself as a result of having
done so
A. I, II, III, and IV
B. I and III only
C. II and IV only
D. I, II, and IV only
Answer: D
Explanation:
The activities described in Selections I, II, and IV are prohibited by the FINRA when a
representative is selling shares of a mutual fund. Representatives are prohibited from recommending that
a client purchase shares of a mutual fund prior to its ex-dividend date, so that the client will receive the
dividends when they are distributed-a practice known as "selling dividends"-- unless this recommendation
is justified by the specific circumstances of the client; they are prohibited from telling a client that a fund
that has only a contingent deferred sales charge is a no load fund; and they are prohibited from
withholding an order-i.e., refraining from placing a customer's order promptly--in order to profit
themselves as a result of having done so. There is nothing wrong with telling a client that the interest he
earns on a municipal bond fund will be free from federal taxation since this is a true statement.
NEW QUESTION: 2
A. Option C
B. Option A
C. Option D
D. Option B
Answer: A
NEW QUESTION: 3
A. Option C
B. Option D
C. Option A
D. Option B
E. Option E
F. Option F
Answer: C
NEW QUESTION: 4
Which of the following tools is MOST appropriate for determining how long a security project will take to implement?
A. Waterfall chart
B. Rapid Application Development (RAD)
C. Critical path
D. Gantt chart
Answer: C
Explanation:
The critical path method is most effective for determining how long a project will take. A waterfall chart is used to understand the flow of one process into another. A Gantt chart facilitates the proper estimation and allocation of resources. The Rapid Application Development (RAD) method is used as an aid to facilitate and expedite systems development.
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