Series65 Missed Qs

Which of the following items is NOT included in an income statement? A Goodwill B Selling and administrative expenses C Interest expense D Income taxes paid

A

Which of the following statements is TRUE regarding the receipt of Social Security benefits? A At age 62, a recipient receives a lower initial benefit, but he will receive benefits for more years. B A person can no longer work if he receives benefits at age 62. C If a person starts receiving benefits at age 66, he forgoes cost of living increases. D A person must start receiving benefits at age 68 1/2.

A

XYZ broker-dealer is located in State A, where it maintains its corporate headquarters. Under the Uniform Securities Act, XYZ would not meet the definition of a broker-dealer in State B if it: A Has no office in State B and only sells securities to an investment company located in State B B Has an office in State B and conducts business only with other broker-dealers C Has an office in State B and conducts business with insurance companies D Has no office in State B and conducts business with high net worth clients that are residents of State B

A

For a profitable and rapidly growing firm, holders of preference shares are least likely to benefit from the firm's growth if the preference shares are A) cumulative. B) convertible. C) participating. D) common.

A) cumulative. Just as important, the return on those shares is fixed, and regardless of the growth in the company's earnings, the dividend will remain the same

A client would like to invest $250 a month and have broad exposure to the U.S. equity market. Which of the following recommendations would be most suitable? A A managed closed-end fund B An S&P 500 Index mutual fund C An S&P 500 Index exchange-traded fund D A DJIA exchange-traded fund

B

An investment adviser representative is speaking with a customer about his taxes this year. The customer is also interested in making a gift this year, but does not want to exceed the annual gift tax credit. How will this gift impact the client's taxes? A If made to a family member, the gift is tax-deductible. B The gift will reduce the client's estate. C All gifts are federally tax-free. D The gift will be subject to the gift tax.

B

Which of the following accounts allow for deductible contributions? A Solo Roth 401(k) plans B Traditional IRAs C 529 plans D Non-qualified annuities

B

Which of the following is NOT defined as an IAR? A A person who gives advice and is employed by an investment adviser B A person who solicits new business for an investment adviser C A person that manages portfolios and assets for its clients D A person who manages IARs at an investment advisory firm

C

A client has indicated that his primary objective is maximizing current income regardless of the risk. Which of the following mutual funds would probably be most suitable for achieving that goal? A) ABC Growth and Income Fund B) GHI Index Fund C) JKL Municipal Bond Fund D) DEF High-Yield Bond Fund

D

Which of the following is NOT included in a customer's adjusted gross income (AGI)? A Salary, tips, and bonus B Dividends received from stock C Interest received from corporate bonds D Interest received from municipal bonds

D

Which of the following acts requires publicly traded corporations to issue annual reports?

Securities Exchange Act of 1934

The yield for a zero-coupon bond is based on:

The purchase price relative to face value

Which of the following statements is TRUE regarding the pricing of ETF shares? A ETFs can be bought at a premium or discount to their net asset value B ETFs do not have a net asset value C ETFs must be purchased at the next calculated net asset value plus a sales charge D ETFs can only be sold at a discount to their net asset value

A Like closed-end investment companies, exchange-traded funds (ETFs) are bought an sold on stock exchanges. While they will have a net asset value (NAV), ETF shares will be bought and sold for their market price (i.e., a discount or premium to the NAV).

You are meeting with a relatively unsophisticated investor who doesn't understand very much about stocks and bonds. The investor asks, "Can you list the advantages of owning common stock as compared to bonds?" Among other reasons, you could reply that A) income payments are more reliable. B) bonds must be surrendered at maturity or at a call while the owner of common stock can hold the investment as long as desired. C) there is limited liability. D) bonds have priority over any equity security in the event of liquidation.

B

All of the following are characteristics of ADRs, EXCEPT that they: A Represent foreign securities that are held in American banks for safekeeping B Pay dividends in the currency of the country in which their issuer is domiciled C Are traded on U.S. exchanges and OTC markets D Make it easier for American investors to diversify their holdings internationally

B ADRs (American Depositary Receipts) represent foreign securities that have been deposited in U.S. banks. They facilitate American investment in foreign securities since they may be purchased on the U.S. exchanges and OTC markets, just like any other stock. They pay dividends in U.S. dollars

Which of the following would NOT be an important consideration when conducting a capital needs assessment for a client? A The rate of inflation B The client's future anticipated earnings C The client's life expectancy and retirement needs D The amount of anticipated volatility in the marketplace

D

Due to changes in customer preferences, a manufacturing company has decided to discontinue the operations of one of its subsidiaries. An explanation of this decision would most likely be found in the company's A) tax return. B) footnotes to the financial statements. C) balance sheet. D) income statement.

footnotes to the financial statements.Footnotes are used to explain extraordinary items such as the sale of a subsidiary.