Series 65 mini quizzes
Under the Securities Act of 1933, which of the following is NOT a security?
A term life insurance policy
ABC is an FINRA member BD. Among other functions it serves as the principal underwriter of the XYZ Mutual Fund. Which would be prohibited unless preemptive relief was offered by the SEC?
ABC purchases some securities directly from XYZ's portfolio.
Which would be considered investment companies under the Act of 1940?
Face-amount certificate company, unit investment trust, management company
A man owns 15% of the stock of a company. His wife owns 5% of the stock of the same company. If the wife wishes to sell the stock she owns, which of the following statements is true? I. Both the husband and the wife are affiliates. II. He is an affiliate, but she is not. III. She must files under Rule 144. IV. She does not have to file under Rule 144.
I. Both the husband and the wife are affiliates. III. She must file under Rule 144.
Which statements correctly expresses requirements under the investment Company Act of 1940?
No investment advisory contract may be entered into that does not provide termination with no more than 60 days notice in writing AND no registered investment company may acquire more than 3% of the shares of another investment company.
Which of the following statements about accredited investors is TRUE?
Purchases of securities by accredited investors do not count toward the 35-investor limitation found in Rule 506(b) of Regulation D.
How do closed-end investment companies differ from open-end investment companies?
The only time a prospectus is used with the sale of a closed-end company is on the IPO sales of open-end shares must always be preceded or accompanied by a prospectus.
A securities order that is initiated by a client is what type of order
Unsolicited
Under the Securities Exchange Act of 1934, as amended, registration with the SEC would be required of
a broker-dealer whose business is strictly municipal securities AND a broker-dealer whose business is strictly non-Nasdaq over the counter securities.
The term issuer, as defined in the securities Act of 1933, would include:
a government entity issuing exempt securities AND corporation issuing securities in an exempt transaction
An agent receives instructions forma client to buy 100 shares of KAPCO common stock at what the agent thinks is the best price. Two days later, the agent enters the order. In this case, the agent has
acted inappropriately
A financial reporter notices that the quoted priceAll of one investment company's shares is at 22% discount from the NAV. From this info, it can be deduced that the company must be a
closed-end investment company
The Investment Company Act of 1940 prohibits registered investment companies from engaging in any of the following practices EXCEPT
issuing common stock
Provisions under the Securities Exchanges Act of 1934 include all of the following EXCEPT
requiring full disclosure regarding an upcoming IPO
All of the following regarding a 12b-1 company are true except
the plan may be terminated by a vote of the majority of shareholders or a majority of the board of directors.
Alice Allison is the president of Podunk University and sits on the board of directors of KAPCO Securities, a broker-dealer registered with the SEC. President Allison
would be considered an associated person of KAPCO
