series 66 - practice exam review

When discussing employment and production, which of the following industries are typically more affected by a recession?

Capital goods Consumer durable goods

If a federal covered adviser's fiscal year ends on November 30, 2022, it must file its annual updating amendment to its Form ADV no later than

February 28, 2023. The annual updating amendment to Form ADV must be filed within 90 days of the adviser's fiscal year-end.

Which of the following is responsible for administration of the Bank Secrecy Act?

Financial Crimes Enforcement Network

a British citizen temporarily working in the United States, wants to form a business venture with other investors. She is looking for favorable tax treatment of earnings and losses. She also wants to limit the number of investors, but is willing to share control of the enterprise with others to attract them. What business form do you advise to her?

General Partnership

The terms offer, offer to sell, sale, and sell include which of the following?

Preemptive rights

Which of the following statements regarding preemptive rights is true?

Preferred stockholders do not have the right to subscribe to a rights offering.

Construction of an investment policy statement (IPS) requires identifying the client's objectives and constraints. Which of the following would not be in the list of constraints?

Risk tolerance

James is an investment adviser representative with Rock, Feller, and Standard (RFS), a covered adviser with its principal office in State O. James works out of an office in State P and has 4 retail clients there. In addition, James has 25 retail clients in State D, 6 retail clients in State M, and 1 retail client in State O. He would be required to register as an investment adviser representative in

State P.

Which of the following sell transactions is not subject to the holding period restriction specified in SEC Rule 144?

Stock acquired on the NYSE by a corporate affiliate

Which of the following would best describe working capital?

The amount of money a corporation has available to work with if it liquidates its current assets and pays off all of its current liabilities

Relatively high portfolio volatility is most tolerable to investors with

a long-term time horizon

In reviewing prospectuses and registration statements, the SEC

does not approve or disapprove of the issue.

In 1933, Congress passed the Securities Act, which required the registration of new issues before their offering to the public. However, the law contained a number of exemptions, including that for

equipment trust certificates issued by a regulated common carrier.

A broker-dealer that operates on a fully disclosed basis is one that

introduces its customers to the broker-dealer's clearing firm.

Among the differences between an investment in a limited partnership offering and in a corporation is that

limited partnership offerings do not pay dividends; corporations do.

The owners' equity portion of a corporation's balance sheet would contain all of the following except

net income

An investment adviser representative of a federal covered investment adviser registers with

the Administrator

According to the Uniform Securities Act, a state-registered investment adviser may have custody of a customer's funds and securities if

the Administrator has been notified of the custody arrangement.

The annual interest payment divided by the current dollar price of a bond is

the current yield.

In the formula for determining the real rate of return`

the inflation rate is subtracted from the investment return

Balance sheets contain

the net worth of the firm at the end of the reporting period.

Among the differences between C corporations and S corporations is

the number of allowable shareholders the tax treatment of the corporation's earnings residency requirements of shareholders

When a variable annuity is annuitized

the number of annuity units redeemed each payment period remains constant

If the required rate of return is higher than anticipated in a present value calculation, the effect would be that

the present value would be lower

An individual who has passed the NASAA examination for registration as an investment adviser representative may begin soliciting advisory clients

when informed by the investment adviser that the representative's registration is effective.

Wealth Creation Advisers (WCA) is a federal covered investment adviser specializing in consulting to pension plans. WCA's principal office is located in State L. The governor of State L is running for re-election. If WCA were to make a $350 contribution to the campaign, under the SEC's pay-to-play rule, WCA

would be prohibited from receiving compensation for advisory services rendered to any agency of State L for two years.