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Last Updated: Sep 14, 2026
No. of Questions: 400 Questions & Answers with Testing Engine
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| Section | Weight | Objectives |
|---|---|---|
| Topic 1: Opens Accounts After Obtaining and Evaluating Customers' Financial Profile and Investment Objectives | 11% | - Customer accounts and documentation
|
| Topic 2: Seeks Business for the Broker-Dealer from Customers and Potential Customers | 9% | - Customer acquisition and prospecting
|
| Topic 3: Provides Customers with Information About Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records | 73% | - Customer recommendations and transactions
|
| Topic 4: Obtains and Verifies Customers' Purchase and Sale Instructions and Agreements; Processes, Completes and Confirms Transactions | 7% | - Trade execution and settlement
|
Bubba's margin account has $2,000 of SMA. If he buys $10,000 of new securities, how much additional
cash must he deposit assuming a Reg T requirement of 50%?
Correct Answer: C 🗳️
Explanation: Only visible for Prep4King members. You can sign-up / login (it's free).
A buy-in of a customer's sale transaction is mandated if the securities have not been received by the
broker/dealer within how many business days following the settlement date:
Correct Answer: B 🗳️
Explanation: Only visible for Prep4King members. You can sign-up / login (it's free).
For an FINRA member firm to exercise discretionary power in any customer account requires written
authorization by that customer except when:
Correct Answer: D 🗳️
Explanation: Only visible for Prep4King members. You can sign-up / login (it's free).
What type of mutual fund would invest in equities and bonds?
Correct Answer: B 🗳️
Explanation: Only visible for Prep4King members. You can sign-up / login (it's free).
Who owns a corporation?
Correct Answer: D 🗳️
Explanation: Only visible for Prep4King members. You can sign-up / login (it's free).
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