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NEW QUESTION: 1
Trevor hears from his wife who has just spoken to the wife of the CEO of Company QAS, that they are about to fire the CFO of QAS. Trevor immediately sells his shares in QAS. In terms of The Standards of
Professional Conduct per Standard II(A) Material Non-Public Information, has Trevor violated the
Standard?
A. Yes, because the information was misappropriated.
B. Yes, because he used material non-public information.
C. Yes, because the information is likely to cause a large price movement in the company's securities.
Answer: B
Explanation:
The information is material and non-public and Trevor should not act on it.
NEW QUESTION: 2
Javier wanted to make a profit of $80 for selling the 4 vases he had made. He had spent $12 for materials. Since he planned to charge the same price for each vase, he used the following equation to determine x, the price he would charge:
4x - 12 = 80
How much did Javier plan to charge for each vase?
A. $23.00
B. $17.50
C. $ 6.50
D. $ 6.00
E. $17.00
Answer: A
NEW QUESTION: 3
A mutual fund has a charge equivalent to 7.5% of the value of assets. This fee is most likely a:
A. 12b-1 fee
B. contingent deferred sales charge
C. front-end load
Answer: C
Explanation:
Many open-end mutual funds charge an up-front sales fee called a load. Loads are as high as 8%, with fully loaded funds charging 7.5-8%, and low-load funds charging less than 3%. The load is calculated as a percentage of the purchase, or offering, price and is deducted from the shareholder's account upon purchase. Front-end loaded funds offer investors a reduced sales charge for large purchases, and some funds may charge a load on reinvested dividends.
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