series 66 - practice test 2
Juliette, a math teacher in the local high school, owns a qualified, tax-deferred annuity. When she retires, what will be the tax consequences of her annuity payments?
Her annuity payments are all taxable as ordinary income.
A manufacturer of soybean oil is concerned that the price of soybeans will increase over the next six months. The best strategy to employ would probably be
a long hedge.
A wealthy individual has set up a GRAT. Should she die during the time the trust is active, how are the remaining assets in the trust taxed?
The original value plus any appreciation is taxed as part of the grantor's estate.
Jean owns a $1 million life insurance policy on her mother, Clara. Jean is named as sole beneficiary, and so far she has paid $150,000 in premiums. If Clara dies, which of the following will occur?
The proceeds will be exempt from income tax.
Under the Investment Advisers Act of 1940, what is the maximum fine that may be imposed for violating the act?
$10,000
Mid-cap stocks are those with a market capitalization between
$2 billion and $10 billion
Without the need to meet any special conditions, a participant in which of the following retirement plans would be able to withdraw funds prior to age 59½ and not incur a 10% tax penalty?
457
An investor would enter a buy stop order to hedge against a loss in
a short stock position
all of the following are requirements to be a salesman of variable products
affiliation with a registered broker-dealer, not an affiliation with a registered investment adviser
Associated Wealth Managers (AWM) is registered with the SEC as a registered investment adviser. As a consequence, if there have been any material changes, AWM must send a copy of its brochure, or a summary of the changes, to
all clients within 120 days of the end of its fiscal year.
Which of the following terms best describes ETNs and leveraged ETFs?
Alternative investments
Which of the following equations correctly shows the relationship between the items on a company's balance sheet?
Assets = liabilities + stockholders' equity
If a woman owns 9% of the common shares of XYZ and her spouse owns 2% and wishes to sell his shares, which of these is true?
He is considered an affiliate, he must file a Form 144 to sell.
Which of the following statements regarding the properties of duration is not true?
Duration measures the holding period return on a bond.
If you overheard an analyst referring to an investment's indicative value, the discussion would most likely be about
ETNs.
Which of the following sources of income is eligible for funding an IRA?
Income received as a sole proprietor
Which of the following is registered with the SEC under the Investment Company Act of 1940?
Open-end investment companies, unit investment trusts, exchange-traded funds
What is the name of the bond document that states the issuer's obligation to pay back a specific amount of money on a specific date?
The indenture
A person is excluded from the definition of investment adviser under the Investment Advisers Act of 1940 if the investment advice and reports are restricted to
U.S. government securities.
A stock analyst viewing a corporation's income statement would not be able to determine the company's
income, revenue, expenses 12.68
Investment companies must send financial reports to shareholders
semiannually. 60/65.2
The agreement that the Administrator can receive subpoenas on behalf of a registered agent, broker-dealer, or investment adviser involved in any securities sale that violates the Uniform Securities Act is
the consent to service of process.
In most cases, the front cover of a prospectus for a registered stock offering must contain a statement to the effect that the SEC, or state if an intrastate offering, had not approved or disapproved of the security. This statement is known as
the disclaimer.
