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Chapter 2-3
Chapter
4-5
Chapter
6-7
Chapter
8-9
Chapter
10-11
100
Does SIPC protect separate customers or separate accounts?
What is Separate customers. A customer with both a cash and margin account with a BD would be covered once.
100
A bond trading at a price below par is a __________ bond.
What is A bond trading at a price below par is a discount bond.
100
What is a suitable investment in a college fund for a 3-year-old?
What is Growth funds, since the child has a long time horizon
100
When withdrawing from a qualified plan, how is the distribution taxed?
What is The entire withdrawal is taxed, since these plans are normally funded pre-tax and have a zero cost basis.
100
Who assumes the investment risk in a variable insurance contract?
What is The client
200
Which federal law created the SEC?
What is The Securities Exchange Act of 1934
200
Negotiable CDs (also called Jumbo CDs) have a minimum denomination of $__________.
What is Negotiable CDs (also called Jumbo CDs) have a minimum denomination of $100,000.
200
Is a mutual fund's redemption fee considered a sales charge?
What is No, since it does not go to selling brokers, but rather stays within the fund.
200
A sale for a loss would trigger the wash sale rule if the same security is repurchased within ____________________.
What is A sale for a loss would trigger the wash sale rule if the same security is repurchased within 30 days of the sale.
200
If performance in a given period is greater than the AIR, the next payment will ___________.
What is If performance in a given period is greater than the AIR, the next payment will increase.
300
What regulation protects the non-public personal information of customers?
What is Regulation S-P
300
This voting method allows stockholders to multiply the number of shares owned by the number of directorships.
What is Cumulative voting
300
A measurement of frequency of trading in a mutual fund is called ______________________.
What is A measurement of frequency of trading in a mutual fund is called portfolio turnover.
300
Early withdrawal without penalty is allowed for what reasons?
What is Death, disability, qualified higher education expenses, or first-time home buyer ($10,000 limit)
300
At annuitization (payout), accumulation units are exchanged for __________ units.
What is At annuitization (payout), accumulation units are exchanged for annuity units.
400
Identify the acronym: SIPC
What is Securities Investor Protection Corporation
400
What security helps clients to indirectly buy foreign shares?
What is An American depository receipt (ADR)
400
Which share class is typically appropriate for an investor with an uncertain time horizon?
What is Class C
400
What is the maximum annual contribution to a 403(b)?
What is $18,000
400
Joan invests $15,000 in a qualified annuity. At age 64, she withdraws all $22,000. What's Joan's basis; what's taxed?
What is Her basis is zero, since the annuity is qualified (funded pre-tax) and the entire $22,000 is taxed as ordinary income.
500
May a client use a numbered account instead of her name?
What is Yes, provided the client's identity is known to the firm.
500
Joe owns 100 shares of MNO at $20 (total cost $2,000). If MNO declares a 10% stock dividend, what is Joe's new basis?
What is Original cost ÷ new total number of shares ($2,000 ÷ 110 shares = $18.18)
500
May closed-end funds issue more than one type of security?
What is Yes. Closed-end funds may issue common stock, preferred stock, or bonds.
500
A decline in GDP for two successive quarters is defined as a ____________.
What is A decline in GDP for two successive quarters is defined as a recession.
500
What is the downside of a bonus annuity?
What is Potentially higher fees or longer surrender periods