Test questions 65

Section 201 of the USA

10.4

If a federally covered advisers fiscal year ends on November 30, 2014 it must file it's annual updating amendment to its form a ADV no later than

28 February 2015

Define broker dealer

A broker-dealer is a person that buys or sells for the accounts of others for his or her own account

Stock market exchange

A securities exchange market is an auction market in which prices are stab list by auction the stock market does not buy or sell stock itself it's simply supplies the facility for its members to treat prices are established in an auction price rather than by direct negotiations between buyer and seller as occurs in the over-the-counter OTC market only stocks

Security

And investment contract

Which of the following individuals may not open a joint account

Any two or more persons can have a joint account but a minor is specifically excluded from the definition of a person

The uniform securities act provides for civil penalties in the event of illegal activities of broker-dealers and agents under the act the maximum that a purchaser would be entitled to claim would be

Attorneys fees court costs and interest at the states legal rate

Employee retirement plan for the goal of retaining a key employee would probably start with

Deferred compensation plan because the deferred compensation plan allows the employer to discriminate it is a popular choice for every special benefits to retain key employees deferred benefit plans will be the answer to a question dealing with offering maximum benefits to older employees

Which of the following investments is the least appropriate for clients primarily concerned with liquidity

Direct participation programs there is little secondary market liquidity for direct participation programs DPP of those securities listed there the least appropriate for a client seeking seeking liquidity

Under the uniform securities act registration of an investment advisor who has no place of business in the state must register if

He had more than five noninstitutional clients who were residents of the state

Closed end investment co.

It is a type of management company, it sells at market plate price plus commission,,it does not redeem it's own shares

Open and management investment company

Mutual fund, redeemable shares, Capitalization is always changing in and opened and investment company

Ex-Dividend

On the first day on or after which a purchaser of the stock will NOT receive the dividend

An investor holding which of the following equity securities would not expect to have preemptive rights

Preferred stockholders do not have preemptive rights preemptive rights allow common stockholders to subscribe to additional issues of shares before they are offered to the public to maintain their percentage of ownership

Market Maker

Ready to buy or sell stock on the OTC in effort to keep orderly market

A corporation organized as a C corporation

See corporations are taxed on the corporate level and then again on the shareholder when income is distributed in the form of dividends shareholders liability is limited to the amount of the reinvestment the S corporation is limited to 100 shares trust my own shares of both C and S corporations

Payable date

Send checks to owners

A US citizen own stock in a Canadian company and received dividend the Canadian government holds 15% of the dividend as tax as a result the investor reports a,

Tax credit on the US tax return

Consent to service of process

The USA requires that the consent to service of process accompanying application for registration. Although the administrator will generally request information about the application citizenship, it is not necessary to be you a citizen. Proof of age is not a requirement

ISO's

The favorable tax treatment is lost if the shares acquired through the ISO exercise their soul before one year from the date of exercise or two years from the date of Grant you're not taxed upon exercise only upon sale but the incentive portion of the option could be considered a preference item for purpose AMT

Record date

The record date is usually several weeks after the declaration date,,- a list of owner is created

Those and mutual fund company

The shares are sold the current market price he closed and Company issue is a limited number of shares in a single offering to be sold by the underwriter and appraisal once the shares are sold the trade on an exchange or OTC

Specialist

The term used to describe a person on the floor of the stock exchange who stands ready to buy or sell shares of a specific stock----specialist stands ready to buy or sell on the floor of exchange

Shareholders equity

Total assets minus total liabilities equals shareholders equity

Under the uniform transfer to minors act Ralph wants to get some stock to his brother son Jose Jose's father Bob is the legal guardian but he is failed the series 7 exam 11 times which of the following is correct

Under that you TMA a custodian is required any adult can be the Custo DN and there are no other specific requirements nor does the custodian have to be a member of the family either Ralph or Bob can be the custodian

One of your clients approached you about setting up a trust if your client assumes the role of the grantor what additional rolls maybe taken

Under trust laws the grantor of the trust sometimes referred to as a seller may also be the beneficiary and the trustee

Which of the following statements concerning universal life insurance are correct

Universal life has flexible premiums cash values can fluctuate and may even fall zero