PT5 S66
An investor purchased a Mosaks, Inc. put option with a strike price of $105. If Mosaks' stock price is $115 at expiration, the value of the put option is
$0 - value of $0 because it will not be exercised
An Administrator may summarily suspend a registration pending final determination of proceedings under the USA. However, the Administrator may NOT enter a final order without
- appropriate prior notice to the registrant - an opportunity for a hearing - findings of fact and conclusions of law
A preorganizational subscription is an exempt transaction if there are : - -
-no more than 10 subscribers -and no commissions are paid, either directly or indirectly
Under ERISA, a fiduciary (is/is not) required to confine investments to only those most likely to achieve growth
Is Not
A distribution from an IRA taken in equal annual amounts over the owner's life (is/is not) subject to the 10% premature distribution penalty even if started before age 59½
Is not
which efficient market hypothesis suggests that an investor can achieve above-market returns by only utilizing insider information?
Semi-strong
Both rights and warrants may trade in the secondary market and may have prices that include a speculative (time) value
Warrants are often issued attached to a bond issue to reduce the interest costs to the issuer.
A manager of a venture capital fund would be most interested in investing in
a young, promising company
The exercise prices of warrants are usually _____ the current market price of the underlying security at time of issue
above
Review of an SEC-registered investment adviser's policies and procedures designed to prevent violation of the federal securities laws must take place no less frequently than
annually - by the CCO
The exercise prices of stock rights are usually ______ the current market price of the underlying security at time of issue
below
Because the C corporation is an entity separate from its shareholders, suitability for a C corporation account is based solely on the company itself
does not require considering the suitability of the owners
There is no place on the Form U4 to indicate the applicant's ...
education background
The exception for qualified domestic relations orders (QDROs) and for retirement at age 55 apply to ...
employer-sponsored plans
ERISA prohibits retirement plans from making investments that are ...
excessively speculative - such as uncovered call writing, which possesses unlimited risk.
The CAPM assumes that the optimal portfolio should be the one with the ..... of all possible portfolios.
highest Sharpe Ratio
One of the risks in setting up a GRAT is that if the grantor dies during the term of the trust (usually 3-10 years), the assets put in the GRAT, plus any appreciation, are
included in her estate
The commonly tested _____________ are: liquidity needs, time horizon, taxes, legal and regulatory factors, and unique needs and preferences
investment constraints
The commonly tested investment constraints are: ... 1- 2- 3- 4-
liquidity needs time horizon, taxes legal and regulatory factors and unique needs and preferences
larger accounts tend to have many of the smaller fees waived. However, if the client is _________________, it is likely that the transfer fee will be charged
moving the account to another firm
The fiduciary is required to diversify investments so as to minimize the risk of losses, unless doing so is clearly ...
not prudent under the circumstances
The IRA overcontribution 6% penalty can be avoided by ...
removing the excess contribution plus any growth it experienced before removal
which efficient market hypothesis suggests that nothing has any value - efficient markets are totally random.
strong form
which efficient market hypothesis suggests that technical analysis is of no value
weak form