66 test 1
What act covers requirements for new issues
1933
Why is dollar cost averaging beneficial
Achieved an avg cost per share lower than the avg price per share
Main advantage of a NQDC plan from a company's perspective
Can discriminate
A bond analyst who determines the value of a debt security by adding the present value of the future coupons to the present value of the maturity value is using which of the following valuation methods?
Discounted cash flow
Main benefit of a partnership
Ease of formation
Which of the following are regulated under the Securities Exchange Act of 1934? New issues Broker-dealers Securities exchanges
Exchanges and BD's
Plenitude Premier Solutions (PPS) is registered in State C. If PPS wished to maintain custody of client funds or securities, they must
Give prompt notice to administrator on form ADV.
a registered investment adviser in three states, has spent several years developing the software for a program will allow the model portfolios it designs for its clients to consistently outperform the market. APA is now charging—in addition to their standard 25 basis points per quarter—a performance-based fee of 10% of the increase of value in a client's portfolio. In so doing, APA would be
In violation of USA act.
What is earnings momentum?
Increase in earnings per share growth rate
_____ register with either the state or the SEC, never with both. This is unlike ______, who invariably register with both the SEC and the state(s) in which they do business.
Investment advisors, Broker dealers
Differences between static and interactive content on social media include which of these? Only static content can be reused by others. Only static content needs preapproval. Only static content can be changed by the person who originated it. Only interactive content can be commented on by others.
Only static content needs preapproval Only interactive content can be commented on by others
A client of yours comes to the office and shows you some sales literature from a mutual fund that has him very excited. According to the material, the fund's average annual return over the past 10 years has been in excess of 15% and it has achieved the highest rating from the major fund rating services. Before recommending this fund to your clients, the first thing you would probably check for in the fund's prospectus is
Portfolio managers tenure, to see if it is the same manager who achieved those returns
What is subtracted from net worth for book value
Pref stock and intangible assets
Which is most commonly used to evaluate the marketplace's perceived value of a particular stock
Price to earnings ratio
Which of the following items are not included in the gross estate of a decedent? A) Proceeds from a life insurance policy held in a revocable trust B) Property held in an account registered tenants in common C) The first $250,000 of a primary residence if owned singly, $500,000 if owned jointly with spouse D) Proceeds from a life insurance policy owned by the deceased's spouse
Proceeds from a life insirance policy owned by the deceased's spouse
There are three cases that would not be custody revolving around the three-business-day rule
Receiving a check made payable to a third party and forwarding that to the third party within three business days Receiving a check made payable to the IA and returning it within three business days Receiving securities from a client and returning them within three business days
What gifts never have a tax
Recognized 503c charities (American Red Cross)
What is the strongest action an administrator can do without a court
Revoke
What is not a factor when considering lump sum payments
Salary
Which of the following is considered to be a security? A) Section 529 plan B) Coverdell ESA C) Section 457 plan D) Section 403(b) plan
Section 529 plan
If a client dies intestate, who is the only person who can handle the account and how are they chosen
State appoints an administrator of the account
he Administrator has just notified Rockland Securities that its application to operate as a broker-dealer in this state is now effective. Which of the following parties would be considered registered?
The firm, and the officers and directors acting as agents
What insurance product has flexible premiums
Universal life
An investor buys 10M 6.6s of 10 at 67, break this down
an investor buys $10,000 worth of 6.6% yielding bonds
Companies ______ use their qualified plan assets to finance their business operations.
cannot
Out of debentures and subordinated debentures which is considered a general creditor
debenture
Adoption is defined as a firm's
endorsement of the content of a third-party site
The weak form of the EMH states that all market information
has already been incorporated into the current stock price. Therefore, having that information is of no help in predicting movements in the market.
Convictions are grounds for administrative action from state administrator only if they occurred within
last 10 years
What is control stock
stock owned by directors, officers, or persons who own or control 10% or more of the issuer's voting stock
