Investment Company Questions
When referring to guarantees in a variable annuity contract, a registered representative would be permitted to say all of the following EXCEPT: A. "The contract may provide for a guaranteed minimum income benefit for an additional premium" B. "The contract may provide for a guaranteed minimum death benefit" C. "The contract may provide for payments over a guaranteed time period" D. "The contract may provide for a guaranteed return on investment in the separate account"
"the contract may provide for a guaranteed return on investment in the separate account"
A customer redeems 1,000 shares of XYZ Fund. The computed Net Asset Value per share is $13 and the Public Offering Price is $13.68. The fund has a 1/2% redemption fee. The customer will receive: A. $12,905 B. $12,915 C. $12,925 D. $12,935
$12,935
A customer contributed $50,000 to a variable annuity contract. The account value has grown over the years and the NAV is now $70,000. The customer is now age 60, and takes a lump-sum distribution of $25,000 to pay for expenses. Which statement is TRUE? A. The entire $25,000 distribution is not taxable B. $5,000 of the distribution is taxable and $20,000 is not taxable C. $20,000 of the distribution is taxable and $5,000 is not taxable D. The entire $25,000 distribution is taxable
$20,000 of the distribution is taxable and $5,000 is not taxable
Distributions after age 59 ½ from tax qualified retirement plans are: A. 100% taxable B. partial tax free return of capital and partial taxable income C. 100% tax free D. 100% tax deferred
100% taxable
Payments received by the owner of a tax qualified variable annuity are: A. 100% taxable as investment income B. only taxable to the extent of earnings above the holder's cost basis C. only taxable to the extent of the holder's cost basis D. non-taxable
100% taxable as investment income
The maximum contribution to a Keogh is effectively...
20% of income or $54,000
Distributions from qualified retirement plans that are not rolled over into an IRA or other qualified plan are subject to: A. 6% withholding tax B. 10% withholding tax C. 20% withholding tax D. 25% withholding tax
20% withholding tax
A customer redeems a mutual fund. The customer must be paid the money from the fund company within how many business days? A. 1 business day B. 3 business days C. 5 business days D. 10 business days
5 business days
A woman in the highest tax bracket has $105,000 to invest for her teenage child's college education. She wants to make sure that, if he doesn't attend college, that he will not have access to these funds. She should be advised to make the investment in a: A. Coverdell ESA B. 529 Plan C. UTMA account D. Growth mutual fund
529 plan
Amount of REIT income that must be real estate related to qualify as an investment company
75%
When comparing an ETN to an ETF, which statements are TRUE? I ETNs have both credit risk and market risk II ETFs have both credit and market risk III ETNs have only market risk IV ETFs have only market risk
I. ETNs have both credit risk and market risk IV. ETFs have only market risk
Which of the following funds MUST be a closed end fund? I Net Asset Value = $10 / Purchase Price = $9.50 II Net Asset Value = $10 / Purchase Price = $10 III Net Asset Value = $10 / Purchase Price = $10.50
I. NAV=$10/ Purchase price=$9.50
When comparing Real Estate Investment Trusts (REITs) to Real Estate Limited Partnerships (RELPs), which of the following statements are TRUE? I REITs allow for flow through of gain II RELPs allows for flow through of gain III REITs allow for flow through of loss IV RELPs allow for flow through of loss
I. REITs allow for flow through of gain II. RELPs allow for flow through of gain IV. RELPs allow for flow through of loss
Which of the following statements are TRUE about money market funds? I All distributions are fully taxable as investment income II Money market funds usually have high beta coefficients III The objective of such funds is long term capital growth IV Money market funds usually have no sales charge
I. all distributions are fully taxable as investment income IV. money market funds usually have no sales charge
Which of the following are characteristics of Defined Contribution Plans? I Annual contribution amounts are fixed II If the corporation has an unprofitable year, the contribution may be omitted III The annual benefit varies dependent on the number of years that the employee is included IV This type of plan is not subject to ERISA requirements
I. annual contribution amounts are fixed III. the annual benefit varies dependent on the number of years that the employee is included
Which of the following statements are TRUE for both mutual funds and variable annuities? I Asset appreciation is untaxed for both II Dividend and capital gains distributions are taxable each year for both III Both have portfolios that are managed IV Both are regulated by the Investment Company Act of 1940
I. asset appreciation is untaxed for both III. both have portfolios that are managed IV. both are regulated by the Investment Co. Act of 1940
Which of the following statements are TRUE regarding contributions to 403(b) tax deferred annuities and the distributions from these plans after age 59 1/2? I Contributions are made with before tax dollars II Contributions are made with after tax dollars III Distributions are 100% taxable IV Distributions are tax free
I. contributions are made with before tax dollars III. distributions are 100% taxable
During the accumulation phase of a variable annuity contract, reinvested: I dividends and interest are tax deferred II capital gains are tax deferred III dividends and interest are taxable IV capital gains are taxable
I. dividends and interest are tax deferred II. capital gains are tax deferred
Health Saving Accounts (HSAs) are: I employer-established II employee-established III funded with tax-deductible contributions IV funded with non tax-deductible contributions
I. employer-established III. funded with tax-deductible contributions
Exchange traded index funds: I have comparable or lower expense ratios than index mutual funds II can be traded anytime during exchange trading hours at net asset value III can be redeemed at net asset value computed at the close of the market IV can be traded at no commission cost to the customer
I. have comparable or lower expense ratios than index mutual funds II. can be traded anytime during exchange hours at net asset value
REITs are NOT permitted to distribute which of the following to their shareholders? I Income II Dividends III Capital Gains IV Capital Losses
I. income IV. capital losses
The purchaser of a variable annuity bears which of the following risks? I Interest rate risk II Expense risk III Mortality risk IV Investment risk
I. interest rate risk IV. investment risk
Which of the following customers is NOT allowed a breakpoint on mutual fund purchases? I Investment Club II Omnibus Account III Corporate Purchaser IV Individual Purchaser
I. investment club II. omnibus account
Which statements are TRUE regarding mutual funds that have adopted "12b-1" plans? I Mailings to prospective purchasers of the fund are an acceptable "12b-1" charge II Mailings to prospective purchasers of the fund are not an acceptable "12b-1" charge III Expense ratios for funds that have adopted 12b-1 plans can be expected to be lower than for similar funds without a 12b-1 fee IV Expense ratios for funds that have adopted 12b-1 plans can be expected to be higher than for similar funds without a 12b-1 fee
I. mailings to prospective purchasers of the fund are an acceptable "12b-1" charge IV. expense ratios for funds that have adopted 12b-1 plans can be expected to be higher than for similar funds w/o a 12b-1 fee
Which of the following statements are TRUE regarding management fees imposed by mutual funds? I Management fees are paid to the investment adviser of the fund II Management fees are paid to the individuals selling the fund III Management fees are deducted from fund gross investment income before any dividend distributions are made IV Management fees are not deducted from fund gross investment income
I. management fees are paid to the investment adviser of the fund III. management fees are deducted from fund gross investment income before any dividend distributions are made
Which of the following securities can be sold by an individual holding an investment companies/variable annuities (Series 6) registered representative's license? I Municipal Investment Trusts II Real Estate Investment Trusts III Municipal Bond Funds IV Revenue Bonds
I. municipal investment trusts III. municipal bond funds
Which of the following terms apply to publicly traded fund shares? I Negotiable II Redeemable III One-time stock issuance IV Continuous stock issuance
I. negotiable III. one-time stock issuance
Which sources of REIT income are counted towards the 75% test required by Subchapter M? I Net rental income II Interest income from mortgages III Real estate tax refunds IV Dividend income
I. net rental income II. interest income from mortgages III. real estate tax refunds
Which of the following securities are redeemable? I Open-end funds II Closed-end funds III Corporate debentures IV Series EE bonds
I. open-end funds IV. series EE bonds
Which statements are TRUE regarding variable annuities during the accumulation phase? I Periodic payments of fixed dollar amounts can be made into the separate account II Periodic payments of varying dollar amounts can be made into the separate account III Periodic distributions of fixed dollar amounts can be made to the holder from the separate account IV Periodic distributions of varying dollar amounts can be made to the holder from the separate account
I. periodic payments of fixed dollar amounts can be made into the separate account II. periodic payments of varying dollar amounts can be made into the separate account
A variable annuity is a(n): I security regulated under the Investment Company Act of 1940 II insurance product that is not regulated under the Investment Company Act of 1940 III security that must be sold with a prospectus IV insurance product that has no prospectus requirement
I. security regulated under the Investment Co. Act of 1940 III. security that must be sold with a prospectus
Net Asset Value per share for a mutual fund can be expected to decrease if which of the following occur(s)? I The fund has made dividend distributions to shareholders II The securities in the portfolio have depreciated in value III The securities in the portfolio have paid dividends
I. the fund has made dividend distributions to shareholders II. the securities in the portfolio have depreciated in value
When a variable annuity contract is "annuitized," which statements are TRUE? I The number of annuity units is fixed II The number of annuity units is variable III The annuity unit value is fixed IV The annuity unit value is variable
I. the number of annuity units is fixed IV. the annuity unit value is variable
Which statements are TRUE about SEP IRAs? I The plan is established by the employer II The plan is established by each employee III The maximum annual contribution is the same as for a Traditional or Roth IRA IV The maximum annual contribution is significantly greater than for a Traditional or Roth IRA
I. the plan is established by the employer IV. the max annual contribution is significantly greater than for a Traditional or Roth IRA
For an investor who has a Keogh Plan, which of the following statements are TRUE? I The plan is a tax qualified II The plan is non-tax qualified III Once distributions commence at age 59 1/2 or later, only the tax deferred build-up is taxed IV Once distributions commence at age 59 1/2 or later, both the original investment and the build-up are taxed
I. the plan is tax qualified IV. once distributions commence at age 59 1/2 or later, both the original investment and the build-up are taxed
Real Estate Investment Trusts are: I traded on stock exchanges II traded in the over-the-counter market III securities which are redeemable with the sponsor
I. traded on stock exchanges II. traded in the over-the-counter market
Which statements are TRUE about mutual fund "Class B" shares? I Class B shares impose a front-end sales charge II Class B shares impose a contingent deferred sales charge III Class B shares impose a 12b-1 fee IV Class B shares do not impose a 12b-1 fee
II. Class B shares impose a contingent deferred sales charge III. Class B shares impose a 12b-1 fee
Which of the following statements are TRUE regarding the taxation of payments from variable annuities? I FIFO accounting is used to determine the taxation II LIFO accounting is used to determine the taxation III The tax deferred amount above the basis comes out first, followed by the original contribution IV The original contribution comes out first, followed by the tax deferred build-up
II. LIFO accounting is used to determine the taxation III. the tax deferred amount above the basis comes out first, followed by the original contribution
Which statements are TRUE regarding the annuitization of a variable annuity contract? I A Life Annuity payout option must be elected by the policy holder II Life Annuity-Period Certain may be elected by the policy holder III The number of annuity units will vary IV The annuity payment will vary
II. Life annuity-period certain may be elected by the policy holder IV. the annuity payment will vary
Quotes published in the news media for mutual funds show: I Bid price at NAV less any redemption fee II Bid price at NAV III Ask price at NAV plus minimum sales charge IV Ask price at NAV plus maximum sales charge
II. bid price at NAV IV. ask price at NAV plus maximum sales charge
Which of the following statements are TRUE about non-contributory defined benefit retirement plans? I Contribution amounts are fixed II Contribution amounts vary III Annual benefit payments are fixed IV Annual benefit payments vary
II. contribution amounts vary III. annual benefit payments are fixed
Which statements are TRUE about variable annuities? I Contributions are tax deductible II Contributions are not tax deductible III Distributions are taxable IV Distributions are not taxable
II. contributions are not tax deductible III. distributions are taxable
Which statements are TRUE when comparing UTMA Custodian Accounts to Coverdell Education Savings Accounts? I Contributions to UTMA accounts are limited to $2,000 annually II Contributions to Coverdell Education Savings Accounts are limited to $2,000 annually III Earnings in UTMA accounts are subject to Federal income tax IV Earnings in Coverdell Education Savings Accounts are subject to Federal Income tax
II. contributions to coverdell accounts are limited to $2,000 annually III. earnings in UTMA accounts are subject to Federal income tax
Which statements are TRUE about variable annuities? I Contributions to the separate account are tax deductible II Contributions to the separate account are not tax deductible III Earnings in the separate account build tax-deferred IV Earnings in the separate account are taxable each year
II. contributions to the separate account are not tax deductible III. earnings in the separate account built tax-deferred
Variable annuity contracts: I have the issuer bear the investment risk II have the purchaser bear the investment risk III are non-exempt securities IV are exempt securities
II. have the purchaser bear the investment risk III. are non-exempt securities
A client surrenders a variable annuity contract 5 years after purchase because of poor performance. Any surrender fee imposed: I increases sale proceeds II reduces sales proceeds III is deductible IV is not deductible
II. reduces sales proceeds IV. is not deductible
Exchange Traded Funds (ETFs) are: I registered under the Investment Company Act of 1940 as closed-end management companies II registered under the Investment Company Act of 1940 as open-end management companies III regulated by the SEC and FINRA IV regulated by FDIC and the Department of Treasury
II. registered under the IC Act as open-end management companies III. regulated by the SEC and FINRA
Which of the following statements are TRUE regarding REITs? I The REIT issues common shares representing a proportional interest in the investment company II The REIT issues shares of beneficial interest representing an undivided interest in a pool of real estate investments III REITs are similar to open end investment company shares IV REITs are similar to closed end investment company shares
II. the REIT issues shares of beneficial interest representing an undivided interest in a pool of real estate investments IV. REITs are similar to closed end investment company shares
Which of the following terms apply to fixed unit investment trusts? I Managed II Unmanaged III Regulated IV Unregulated
II. unmanaged III. regulated
Redemption always takes place at the...
NAV
The minimum price at which an open end fund share can be purchased is: A. Net Asset Value B. Net Asset Value plus a commission C. Market Price D. Market Price plus a commission
Net Asset Value
Quotes for mutual funds in the news media show: A. Net Asset Value only, since the offering price can vary depending on the sales charge imposed B. Public Offering Price only, computed using the minimum sales charge imposed by the fund C. Net Asset Value and the Public Offering Price computed using the minimum sales charge imposed by the fund D. Net Asset Value and the Public Offering Price computed using the maximum sales charge imposed by the fund
Net Asset Value and the Public Offering Price computed using the maximum sales charge imposed by the fund
Which of the following is NOT defined as an "investment company" under the Investment Company Act of 1940? A. Face Amount Certificate Company B. Real Estate Investment Trust C. Management Company D. Unit Investment Trust
REIT
Spiders (SPDRs) are securities whose value is based upon the securities in the: A. Standard and Poor's 100 Index B. Standard and Poor's 400 MidCap Index C. Standard and Poor's 500 Index D. Standard and Poor's 1000 Index
S&P 500 Index
Which of the following is a term that is NOT associated with mutual funds? A. LOI B. ROA C. CDSC D. SIPC
SIPC
State-sponsored education savings programs that permit contributions to build tax-deferred are known as: A. Coverdell Education Savings Accounts B. Education IRAs C. Section 529 plans D. Section 403(b) plans
Section 529 plans
In the year 2017, a divorced woman under age 50 collects $50,000 of alimony and child support as her sole source of income. The woman wishes to make a contribution to an Individual Retirement Account this year. Which statement is TRUE? A. No contribution can be made because the woman does not have earned income B. A contribution of up to $5,500 is permitted, but the contribution is not tax deductible. C. A tax deductible contribution of up to $5,500 is permitted D. A tax deductible contribution of up to $6,000 is permitted
a tax deductible contribution of up to $5,500 is permitted
An "annuity unit" of a variable annuity contract is a(n): A. share of common stock representing an interest in the underlying portfolio B. accounting measure of the owner's interest in the separate account C. accounting measure of the annuity amount to be received by the owner D. share of beneficial interest in a fixed portfolio
accounting measure of the annuity amount to be received by the owner
An "accumulation unit" of a variable annuity contract is a(n): A. share of common stock representing an interest in the underlying portfolio B. accounting measure of the owner's interest in the separate account C. accounting measure of the annuity amount to be received by the owner D. share of beneficial interest in a fixed portfolio
accounting measure of the owner's interest in the separate account
A 60-year old customer asks about the tax consequence of taking distributions from his Traditional 401(k) plan. You should tell him that: A. withdrawals representing principal are tax exempt and any withdrawals representing earnings are taxed at 15% B. all withdrawals are taxable at ordinary income tax rates C. withdrawals representing principal are taxed at 15% and any withdrawals representing earnings are tax exempt D. all withdrawals are tax exempt
all withdrawals are taxable at ordinary income tax rates
Which is the BEST definition of an "annuity unit"? A. An accounting measure used to determine the number of units the contract holder may purchase in the separate account B. An accounting measure used to establish the contract holder's ownership interest C. An accounting measure upon which the amount of pay out is determined D. An accounting measure used to determine the contract holder's death benefit
an accounting measure upon which the amount of pay out is determined
The manager of an unregistered hedge fund charges a fee of "2 and 20." This means that investors are charged a(n): A. annual management fee against net assets of 2% plus a performance fee based on exceeding a benchmark index by 20% B. annual management fee against net assets of 2% plus a performance fee based on 20% of profits C. annual management fee against net assets of 20% plus a performance fee based on exceeding a benchmark index by 2% D. annual management fee against net assets of 20% plus a performance fee based on 2% of profits
annual management fee against net assets of 2% plus a performance fee based on 20% of profits
Mutual fund sales charge %=
ask-bid/ask
Which of the following investment company securities is NOT redeemable? A. Open end fund shares B. Closed end fund shares C. Fixed unit investment trusts D. Participating unit investment trusts
closed end fund shares
Which of the following can be purchased on margin? A. Mutual Funds B. Initial public offerings of Closed End Funds C. Closed End Funds trading on the NYSE D. Initial public offerings of Fixed Unit Investment Trusts
closed end funds trading on the NYSE
A Special Situations Fund invests in: A. U.S. Government and Agency securities B. corporate bonds and preferred stock rated below investment grade C. a single industry or geographic area D. companies undergoing a takeover or bankruptcy
companies undergoing a takeover or bankruptcy
An investor in a "Ginnie Mae" mutual fund assumes all of the risks EXCEPT: A. Fluctuation of Net Asset Value B. Reinvestment Risk C. Credit Risk D. Prepayment Risk
credit risk
Regularly scheduled investments of the same dollar amount in fund shares will most likely result in a: A. lower average price per share B. higher average price per share C. lower average return on investment D. higher average return on investment
lower average price per share
REITs receive preferential tax treatment based upon: A. portfolio of real estate investments B. distribution of income to shareholders C. registration with the Securities and Exchange Commission D. listing on the New York Stock Exchange
distribution of income to shareholders
An individual wishes to have a fixed number of shares liquidated each month. He or she should elect which type of withdrawal plan? A. Fixed shares B. Fixed period C. Fixed percentage D. Fixed dollar
fixed shares
Which statement is TRUE regarding mutual fund offerings? A. Fund shares can be sold from the underwriter to the public at a discount to the Public Offering Price B. Fund Shares can be sold from a selling group member to the public at a discount to the Public Offering Price C. Fund shares can be sold by a member of the selling group to a non-member firm at a discount to the Public Offering Price D. Fund shares can only be sold to the public at the Public Offering Price as stated in the Prospectus
fund shares can only be sold to the public at the POP as stated in the prospectus
All of the following are characteristics of Defined Benefit Plans EXCEPT: A. annual contribution amounts may vary B. if the corporation has an unprofitable year, the contribution may be omitted C. the annual benefit amount is fixed at retirement D. the adoption of this type of plan benefits key employees who are nearing retirement
if the corporation has an unprofitable year, the contribution may be omitted
What is the main objective of investing in Equity REITs? A. Income and growth B. Capital appreciation and stability C. Tax deductions and tax credits D. Speculation and aggressive gains
income and growth
An income fund would likely invest in all of the following securities EXCEPT: A. Income Bonds B. Treasury Bonds C. Preferred Stock D. High Yield Bonds
income bonds
The manager of a mutual fund is known as the: A. Sponsor B. Investment Adviser C. Custodian D. Underwriter
investment adviser
The investment adviser of a mutual fund determines all of the following EXCEPT: A. purchases of securities into the portfolio B. sales of the securities from the portfolio C. percentage of cash or equivalents held in the portfolio D. investment objective of the fund
investment objective of the fund
A client surrenders a variable annuity contract 5 years after purchase because of poor performance. Any surrender fee imposed: A. increases cost basis B. reduces cost basis C. is deductible D. is not deductible
is not deductible
Which of the following annuity payment options will continue payments to another person for their life after the annuitant dies? A. Life Annuity B. Life Annuity with Period Certain C. Joint and Last Survivor Annuity D. Unit Refund Annuity
joint and last survivor annuity
Which annuity payout option usually results in the largest periodic payment? A. Unit Refund Annuity B. Joint and Last Survivor Annuity C. Life Annuity D. Life Annuity-Period Certain
life annuity
No load funds do not impose any of the following fees EXCEPT: A. Front end sales charge B. Redemption fee C. Management fee D. Contingent deferred sales charge
management fee
The purchaser of a variable annuity bears all of the following risks EXCEPT: A. investment risk B. mortality risk C. legislative risk D. interest rate risk
morality risk
All of the following investment company terms are synonymous EXCEPT: A. Bid B. Redemption Price C. Net Asset Value D. Offering Price
offering price
A "specialty" fund is one which invests in: A. one geographic area or one type of industry B. shares of companies in "special situations" C. high growth companies D. other mutual funds
one geographic area or one type of industry
The essential difference between an open end fund and closed end fund is that a(n): A. open-end fund is managed; while a closed-end fund is not managed B. closed-end fund is managed; while an open-end fund is not managed C. open-end fund has a different capital structure than a closed-end fund D. open-end fund computes Net Asset Value daily; while a closed-end fund does not
open-end fund has a different capital structure than a closed-end fund
The expense ratio of a mutual fund is a measure of: A. profitability B. operating efficiency C. liquidity D. stability
operating efficiency
A variable annuity is a(n): A. open end management company B. closed end management company C. fixed unit investment trust D. participating unit investment trust
participating unit investment trust
An ETF that attempts to emulate the Standard and Poor's 500 Index employs what investment strategy? A. Passive asset management B. Active asset management C. Fundamental analysis D. Technical analysis
passive asset management
An annuitized account in a variable annuity is most similar to: A. a mutual fund B. a whole life insurance unit C. pension payments D. an individual retirement account
pension payments
the death benefit of a VA contract applies_____to annuitization
prior
What does a BDC invest in? A. Hedge funds B. Small cap stocks C. Large cap stocks D. Privately-held companies
privately held companies
What does a BDC invest in? A. Publicly-held small-cap companies B. Publicly-held mid-cap companies C. Privately-held small-cap and mid-cap companies D. Privately-held large-cap companies
privately-held small-cap and mid-cap companies
All of the following terms apply to publicly traded fund shares EXCEPT: A. one-time issuance B. managed C. redeemable D. negotiable
redeemable
A fund that distributes at least 90% of its Net Investment Income to shareholders is termed a(n): A. income fund B. registered fund C. regulated fund D. tax exempt fund
regulated fund
An investor wishes to buy mutual fund shares with the primary objective of aggressive growth. Based on this information, the appropriate recommendation is a: A. balanced fund B. money market fund C. sector fund D. preferred stock fund
sector fund
Mutual funds must send their financial statements to shareholders: A. annually B. semi-annually C. quarterly D. monthly
semi-annually
Employees of non-profit organizations are permitted to establish tax deferred retirement plans, similar to a Keogh, by making investments in a: A. 401(k) plan B. Tax sheltered annuity C. Profit Sharing Plan D. Defined Benefit Plan
tax sheltered annuity
Distributions from variable annuity contracts at retirement age are: A. non-taxable B. taxable as ordinary income on any amount above the customer's cost basis C. taxable as long term capital gains on any amount above the customer's cost basis D. 100% taxable
taxable as ordinary income on any amount above the customer's cost basis
A customer dies, leaving his $300,000 IRA account to his 3 daughters, who are age 46, 50, and 52. Which daughter's life expectancy would be used to determine the minimum annual payout to be made from the IRA? A. The 46 year old daughter's age B. The 50 year old daughter's age C. The 52 year old daughter's age D. The arithmetical average of the 3 daughters' ages
the 52 year old daughter's age
Which statement is TRUE regarding a variable annuity offering a GMIB? A. The contract guarantees a minimum death benefit if the contract holder dies before the separate account is depleted B. The contract guarantees a minimum growth rate for the separate account at the time of annuitization C. The contract guarantees a minimum number of annuity payments D. The contract guarantees a maximum rate at which the contract expenses can grow
the contract guarantees a minimum growth rate for the separate account at the time of annuitization
Which statement is TRUE regarding the ex date for a mutual fund? A. The ex-date is set by the Board of Directors of the Fund B. The ex-date is set by FINRA C. The ex-date is 2 business days prior to the record date D. The ex-date is the day on which the Net Asset Value per share increases
the ex-date is set by the Board of Directors of the Fund
When comparing an Exchange Traded Fund to a Unit Investment Trust, the customer should be made aware that: A. expense ratios tend to be higher for ETFs than for UITs B. the secondary market for UITs is limited while ETFs are actively traded C. UIT portfolios are actively managed while ETF portfolios are passively managed D. cash dividends received from UITs do not qualify for the lower 15% tax rate, while cash dividends received from ETFs do qualify for the lower rate
the secondary market for UITs is limited while ETFs are actively traded
In 2017, an individual earning $60,000 makes an annual contribution of $1,500 to a Traditional IRA. Which statement is TRUE? A. This person is prohibited from contributing to a Roth IRA in that year B. This person can contribute a maximum of $3,000 to a Roth IRA C. This person can contribute a maximum of $4,000 to a Roth IRA D. This person can contribute a maximum of $5,500 to a Roth IRA
this person can contribute a maximum of $4,000 to a Roth IRA
If the actual interest rate earned in the separate account underlying a variable annuity contract is higher than the "AIR" the annuity payment: A. will increase B. will decrease C. is unaffected D. is capped to a maximum amount
will increase