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