S66 10/19

A person who has no place of business in this state would not be considered a broker-dealer if he effects transactions in this state exclusively with all of the following except A) investment advisers. B) the issuers of the securities involved in the transaction. C) insurance companies. D) other broker-dealers.

A

One of your customers called you on Wednesday at 8:00 am ET and asked you to buy $10,000 of the Liberty Balanced Fund Class A shares. If the Wednesday morning financial pages show the fund's NAV to be $45.83 and the POP to be $48.24 and the Thursday morning quote shows the NAV as $46.22 and the POP as 48.65, what is the price per share for this purchase? A) $48.65 B) $46.22 C) $48.24 D) $45.83

A

You have a client who wishes to manage his own portfolio of individual stocks. The simplest style for him to follow would be A) buy and hold B) indexing C) tactical D) core

A

A support level is the price range at which a technical analyst would expect the A) supply of a stock to increase substantially B) demand for a stock to increase substantially C) demand for a stock to decrease substantially D) demand for a stock to remain constant

B

A variable annuity annuitant bears all of the following risks except A) inflation risk B) mortality risk C) interest rate risk D) market risk

B

An agent with a nationally known broker-dealer has been opening new accounts with middle-income clients. When asked for the reason for the success, the agent replies that prospects are offered a money-back guarantee. That is, if any security the agent recommends fails to increase in value by at least 25% in six months, the agent will make up the difference. This type of guarantee A) is permitted only if the guarantee is coming from a third party other than the agent. B) is an unethical and prohibited practice. C) must have been approved by the agent's supervisor before the agent began using it. D) would be considered fraudulent activity.

B

In which one of these business entities does the term member refer to the owners? A) S corporation. B) Limited liability company. C) Limited partnership. D) Sole proprietorship.

B

One way in which open-end investment companies differ from closed-end investment companies is that an open-end investment company's shares A) are purchased and redeemed based on supply and demand. B) outstanding will vary in number at any point in time. C) are traded in the secondary markets rather than on an exchange. D) may be priced at a premium or discount relative to its net asset value.

B

Under the Uniform Securities Act, which of the following concerning the withdrawal of an agent's registration is not true? A) At the Administrator's discretion, disciplinary proceedings may delay effectiveness of a withdrawal application indefinitely. B) Absent any disciplinary proceedings, withdrawal is effective 60 days after application. C) Absent any disciplinary proceedings, withdrawal is effective 30 days after application. D) Disciplinary proceedings may be taken against an agent after the agent's withdrawal is effective.

B

Which of the following firms in the business of rendering investment advice for compensation would be considered a federal covered adviser? A) GHI Consultants, a sole proprietorship managing $82 million belonging to high-net-worth individuals B) ABC Money Managers, a partnership with $115 million under management C) DEF Fund Managers, a corporation managing an unregistered hedge fund with $10 million in assets D) JKL Pension Consultants, a management firm providing services to employee benefit plans, which currently has $179 million under management

B

Which of the following is the most suitable investment for the IRAs of a young couple with a combined annual income of $80,000? A) Initial public offerings of small companies B) Shares of an exchange-traded fund tracking the S&P 500 index C) Partnership interests in an oil and gas drilling program D) Options on large-cap common stock

B

An investor has been comparing several different mutual funds with the same objectives. When making the decision as to which fund to purchase, which of the following factors would be the most important? A) The date of the annual shareholders' meeting B) The net asset value per share C) The fund manager's tenure D) The exchange on which the fund is listed

C

The alternative asset investments class is least associated with which of the following characteristics? A) Nonnormal returns B) Diversification C) Efficient pricing D) Illiquidity

C

XYZ Corporation's A-rated convertible debenture is currently selling for 90. If the bond's conversion price is $40, what is the parity price of the stock? A) $22.50 per share B) $44.00 per share C) $36.00 per share D) $40.00 per share

C 1000/40= 25 900/25= 36

A client is meeting with you to discuss the best way to invest today to meet the goal of funding their child's college expenses. The least important information needed to determine the amount to deposit is A) current college costs B) age of the child C) expected inflation rate D) parent's salary

D

A frequent concern of parents initiating a savings plan for the college education of their child is the lack of control over the assets, particularly if the child decides to forego higher education. When you have a client who shares this concern with you, it would be most appropriate to suggest A) opening a new account in the client's name for this purpose. B) an UTMA account. C) U.S. Treasury zero-coupon bonds. D) a Section 529 plan.

D

In search of higher returns, many investors have turned to alternative investments, such as structured products. Non-exchange-traded structured securities products (SSPs) typically have A) a place in the portfolio of conservative investors. B) moderate liquidity. C) FDIC insurance coverage. D) some form of embedded derivatives.

D

Senior Wealth Advisers (SWA) is registered as an investment adviser in North and South Carolina with offices in Charlotte, North Carolina and Charleston, South Carolina. On occasion, one of their investment adviser representatives meets with clients who reside in North Augusta, South Carolina in a hotel room in Augusta, Georgia. The registration requirements of the Uniform Securities Act would A) require that SWA register with the Georgia Administrator B) require that the IAR register with the Georgia Administrator C) require that both SWA and the IAR register with the Georgia Administrator D) not require registration of either person with the Georgia Administrator

D

True or False? Absent any disciplinary proceedings, withdrawal is effective 60 days after application.

False

Examples of identity theft would include which of these? I. Taking over an individual's credit card account II. Applying for new credit cards in the compromised individual's name III. Lending money in the name of the compromised individual IV. Purchasing lottery tickets in the name of another individual

I & II

The issuance of a long-term debt instrument, such as a bond, by a company would have an immediate effect on which of the following balance sheet items? I. Total assets II. Total liabilities III. Working capital IV. Shareholders' equity

I, II, & III

Unethical business practices of investment advisers include which of these? I. Charging a client an unreasonable advisory fee II. Guaranteeing a client that a specific result will be achieved as a result of advice that will be rendered III. Recommending an investment to a client without reasonable grounds to believe the investment is suitable for that client IV. Continuing to exercise discretionary investment authority under an oral agreement with the client

I, II, III, & IV

Registering with a state Administrator is required for which of these? I. An adviser who only provides impersonal investment advice through newspaper columns, magazine articles, or financial publications of general and regular circulation II. Investment adviser representatives of federal registered advisers who have natural person clients and have a place of business in the state III. An investment adviser who has no place of business in the state and has five advisory clients in the state IV. A person who is an officer of a federal registered investment adviser who has no natural person clients

II only

True or False? Absent any disciplinary proceedings, withdrawal is effective 30 days after application.

True