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NEW QUESTION: 1
Mr. Schaker hasn't been seeing a lot of clients these days with the recent market downturn-which means
he hasn't been generating any commissions, and commissions are his bread and butter. So, Mr. Schaker
does some Googling on his computer and notes that a prominent family of load funds has just introduced
a new global fund. Scribbling the name and contact information of the fund family on his notepad, he
begins calling his existing clients and promoting the new fund, encouraging his clients to redeem some
shares in their existing funds to invest in this fund. Has Mr. Schaker violated any securities laws?
A. Yes. A registered representative should always refrain from recommending shares of a load fund;
trades involving load funds should always be "unsolicited."
B. No. In FINRA's rules regarding fair dealing with customers, the SRO clearly states that "This does not
mean that legitimate sales efforts in the securities business are to be discouraged. . . "
C. Yes. Mr. Schaker is recommending the fund to his existing clients to benefit himself, not them.
D. No. Research indicates that new funds tend to offer abnormally high returns for the first 12 months of
their existence, so Mr. Schaker is doing his clients a favor even if he himself stands to profit.
Answer: C
Explanation:
Yes. Mr. Schaker has violated securities laws in recommending a fund that he doesn't even
seem to have researched very well to his existing clients, some of whom may not be suitable candidates
for a global fund, which invests in foreign as well as domestic securities. Although FINRA's rules do
indicate that it is not trying to stymie legitimate sales efforts, Mr. Schaker's actions do not fall within this
category. There is no research that indicates new funds tend to offer abnormally high funds for the first 12
months of their existence, and if Mr. Schaker would have implied that, he could be up on criminal fraud
charges. There is no law, however, that prohibits a registered representative from recommending a load
fund to a client, as long as there is a legitimate reason for doing so.

NEW QUESTION: 2
Drag and drop components of policy drive Layer 4 - Layer 7 services in an ACI environment from left onto the correct definitions on the right.

Answer:
Explanation:

Explanation

NEW QUESTION: 3
Business risk is concerned with the operations of the firm. Which of the following is not associated with (or not a part of) business risk?
A. The ability to change prices as costs change.
B. The extent to which operating costs are fixed.
C. Sales price variability.
D. Demand variability.
E. Changes in required returns due to financing decisions.
Answer: E
Explanation:
Explanation/Reference:
Explanation:
Business risk depends on:
(1) unit sales variability,
(2) sales price variability,
(3) input price variability,
(4) ability to adjust output prices for changes in input prices and,
(5) the extent to which costs are fixed (operating leverage).