1-10 Practice

Alternative investments

A diverse asset class that typically includes private equity, real estate, and commodities. It provides an alternative to traditional investments, such as debt and equity securities. Less liquid, more diverse.

Non securities derivatives

Foward and futures contracts.

Nurturing growth of the enterprise would be the objective of which of the following types of investments?

Private funds invest in companies where the objective is to use their money and business acumen to grow the company to the point where the fund's holding can be sold at a large profit. Growth funds are looking for growth but take no role in the operations of the companies in which they invest. An investment adviser would like to see portfolio values grow, but you don't invest in an investment adviser. A 529 plan, just like a growth fund, does not take an active role in management.

Ways in which offerings under Rule 506(c) of Regulation D of the Securities Act of 1933 differ from those under Rule 506(b) include each of these except

Under the NSMIA, any security issued under the federal transaction exemption offered under Rule 506, either (b) or (c), is considered a federal covered security. Rule 506(c) permits advertising (general solicitation) but requires that the issuer take reasonable steps to ensure all purchasers meet the accredited investor standard. In a Rule 506(b) offering, up to 35 nonaccredited investors are permitted with no limit placed on the number of accredited investors.

Fiscal year

an accounting period that is one year long and doesn't end on December 31

Coordination is used for

nonexempt companies registering with the SEC.

Prepaid expenses such as

rent, insurance, and postage are considered "CURRENT ASSETS" and are shown as such. The amounts paid for those expenses will not appear on the income statement until the specific item is actually used. For example, if a company pays its property insurance premiums six months in advance, it isn't until the next premium is paid that the prepaid expense comes off the balance sheet and is reflected as an actual expense.

Unlawlful under the Securites Act of 1933 for an agent to

solicit orders for securities that must be registered (non exempt).

Shareholder's equity is computed by

subtracting total liabilities from total assets.

Qualification is for intrastate registration of

those who companies are not registered with the SEC.

Notice filing is the procedure

whereby federal covered investment companies notify the states in which they want to issue shares and to whom they must pay a fee.