Series 66

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One of your customers notices that the short interest on Kepko common stock is high when she asks you for your interpretation you should tell her that this signals

A bullish outlook

Real estate investing can be passive or active an example of passive real estate investment would be

A real estate Limited partnership

The dividend discount model is based

An analytical tool used to project the future price of a common stock using projected dividends

Dividend growth model

Assumes growth of dividends gives higher stock price used with large cap stock

Diversification professional management liquidity low minimum initial investment

Benefits of investment company securities a K a mutual funds

Structured notes

Built to meet specific needs lower borrowing to increase potential returns sophisticated investors only the risks are liquidity returns not realize to maturity they appeal to the buy and hold and short term traits

ETF

Can be traded on exchanges or NASDAQ intra-day price fluctuations can't be bought on margin and sold short typically tracks and index low expense more tax efficient than mutual fun

Open end company

Continue with public offering redeemable shares always need prospectus issues common stock only extremely liquid priced minimum of one time per day at 4 PM forward pricing

Closed end company

Corporate securities no prospectus specific number of shares traded on exchanges in over the counter country funds commission definenumber of shares traded on exchanges and over the counter. Country funds commission priced via supply and demand can be at a discount or premium over nav

ETN

Debt instrument offers a return linked to a market index or other benchmark also known as equity linked notes registers under securities act of 1933 the risks are credit market liquidity conflict of interest on secured generally issued by financial institutions such as banks prices can't be impacted by changes in the issuers crediting they cannot be bought or sold during normal exchange trading hours

What are alternative investments

Direct participation programs exchange traded notes

And analyst wishes to assess the value of a fixed income security by taking the income payment scheduled to be received over a given future. And adjusting that for the time value of money this is known as

Discounted cash flow

Fundamental analysis

Evaluate broad based economic trends current business conditions with an industry and quality of a particular corporation business finances and management

True or false tax deferral is a characteristic of a REIT

False

Yes always

Is the coupon bond duration less than the bond maturity

What are characteristics of a negotiable jumbo CD

Issued in amount of 100,000 to 1,000,000 traded in the secondary market

Discounted cash flow

Looking at future expected cash flow such as interest payments and in turn over turn on principle discounting it to a price at present value

12 B1 fees

Market and promo annual expenses charged against fund assets reduces nav paid quarterly

Management companies

Open end in closed-end are

ETF

Open end traded on exchanges intraday price fluctuating in the secondary market under investment company act

The term derivative applies to

Options forwards futures

Technical analysis

Predict the direction of prices on the basis of charts reflecting price and trading volume parents financial statements and company management uses moving average

Dividend discount model

Present value of future dividends

Characteristics of a receipt that are advantages are

Professional management liquidity diversification

Resistance

Reaches the high

Support

Reaches the low

Market risk for equity funds interest rate risk for bond funds fees and expenses no control over managers timing a purchases or sales

Risks of investment company securities a K a mutual funds

Duration

Sensitivity of a debt security when faced with the changes in interest rate

A client wishing to invest in precious metals could consider each of the following except

Silver gold and platinum are all precious metals lead is not

In a variable life contract which of the following has a guaranteed minimum

The death benefit

Shorter duration

The higher the coupon rate the the duration

Your client has heard about investment opportunities in life settlements among the risk involved with this investment is

The insured me live well past the expected mortality date

Longer duration

The larger the coupon rate the duration

Zero coupon

The length to maturity

Greater the market price movement

The longer the duration ___the market price movement

A client of and I a R mentioned that he has received a prospectus for a variable annuity but does not really understand the product it would be reasonable for the IAR to explain that a variable annuity offers an investor

The opportunity to invest in equity securities any tax deferred basis

Supply and demand

The price to purchase an ETF is determined by

Diversification professional management

Two primary benefits to purchasing any mutual fund

One of your clients approach you looking for an investment that will provide ready and marketable in income which of the family would be the most appropriate recommendation

US treasury notes

Convexity

What determines price volatility

Principal amount coupon rate number of interest payments

What is included in the Future value of cash flow


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