66 test 4
What rates are dividends taxed at
15%
Annual updating amendment must be done
90 days after end of fiscal year
What is a consent to service of process
A consent to service is a formal legal agreement whereby a registrant will be bound by a legal action or subpoena served on the Administrator as if it had been served on the registrant.
What determines if IAR registers with state or federal govt
All IAR are registered with state
Which of the following are fiduciaries? Executor of an estate Administrator of a trust Custodian of an UGMA account Investment adviser representative granted with discretionary authority over the account
All are
Bargain element of an iso is an
Alternative minimum tax (AMT) item
Working cap is on
Balance sheet
At death, a beneficiary will inherit closed end fund at their
Bid price, what they could have been sold for
Coverdell esa has a maximum per
Child
ETN's can be affected by changes in issuers
Credit rating
The favorable tax treatment is lost if the shares acquired through the ISO exercise are sold before 1 year from ___ or 2 years from the ____
Date of exercise Date of grant
What is a bargain element
Difference between current market price vs price at exercise of incentive stock option
Corps get a tax discount on _____
Dividends from other corps
Where a firm involves itself in preparation of online content
Entanglement
The grantor may be taxed on trust income only if the grantor actually received the income.
False
Advantage of coverdell esa over 529
Greater investment flexibility
if a recommendation is not consistent with the adviser's own activity in his own account
He must give a disclosure
What would you expect for growth stock (P/E and div yield)
High P/E and low div yield
If an IAR for a covered IA, IAR is only required to register in states where
IAR maintains a place of business
When someone marries, when does spouse get SS benefits. And how long do they have to stay married to retain
Immediately, and if married for 10 years then spousal benefits last after divorce
In secondary market, what mainly influences t bond prices
Inflation rate
IPS is what and includes what
Investment policy statement for ERISA plans Performance measurement or objectives And how FCF's will be met
If you use a material to make a product, to hedge you should _____ futures
Long, because he is short as he hopes the price goes down since he uses it
Are stock dividends included on a federal tax return
No, stock dividends just adjust the basis
Relationship with nonqual plans and ERISA
Nonqual plans do not fall under ERISA reporting and disclosure requirements
Per USA, an advisory firm can not charge
On basis of performance
If capm is higher than other calculated expected return, the stock is
Overvalued
Investment advisers who are _____ must inform their clients of any change in the membership of it within a reasonable period
Partnerships
What rate of interest would a bank in England charge another British bank for a short-term loan?
SOFR
If you grow a material to sell to make a product, to hedge you should ___ futures
Short, because they are long and hoping price goes up to increase profit
What shows annual renewal for IAR
State licensing fee
Insider information is found out from client, you should tell state administrator or supervisor?
Supervisor
If a client request a loan from their IA, the loan could only be made if
The advisory contract was terminated
Cost basis on gifts is
The same basis the gifted had
Indicative value refers to
Value of ETN published at end of each day
Changes in investment policy for mutual fund require
Vote of outstanding shares
When do nonqual plans give the employer a tax benefit
When employee receives income
Can an order revoking an exemption be made without notice
Yes
Can a BD be a natural person?
Yes very rarely as a sole proprietorship
What is a treasury strip
Zero coupon
The filing of a lawsuit has what effect on BD application for registration
no immediate effect on a broker-dealer's application for registration
Under the Uniform Securities Act, a person who is in the business of providing advice on trading futures contracts and advising clients on securities issued or guaranteed by the U.S. government is
not required to be a registered investment adviser in the state.
Trade confirmations sent by broker-dealers to their customers must always include
the amount of commission charged