Zach Taylor
Quiz by , created more than 1 year ago

Quiz on Series 6, created by Zach Taylor on 03/08/2016.

19
0
0
Zach Taylor
Created by Zach Taylor over 8 years ago
Close

Series 6

Series 6

Question 1 of 36

1

Which of the following statements is true regarding separate accounts and general accounts?

Select one of the following:

  • both types of accounts are registered under the Investment Company Act of 1940

  • both types of accounts pay a guaranteed minimum return

  • the sub accounts of variable annuity may include both types of accounts

  • General accounts hold bonds while separate accounts hold equities

Explanation

Question 2 of 36

1

The method of determining the offering price of an open-end investment company is

Select one of the following:

  • shown in the prospectus

  • set by the SEC

  • the net asset value plus commission costs

  • based upon the supply and demand for securities

Explanation

Question 3 of 36

1

Which of the following is most likely to cause the nav of a bond mutual fund to decline?

Select one of the following:

  • the FED tightens the money supply

  • inflation decreases

  • the S&P 500 Index Rises at a 6% annual rate

  • the treasury Department Dotrice is the amount of treasury bills being issued

Explanation

Question 4 of 36

1

Upon examining the prospectus of an open-end investment company, you notice that the net investment income increased at a greater rate than did the gross investment income. From this fact you may assume that

Select one of the following:

  • there was an increase in the shares outstanding

  • the fund retained most of its dividend income for that period

  • the fund invested in growth companies stocks that are characterized as paying a low rate of dividends

  • the expenses of the fund increased at a lower rate over that period

Explanation

Question 5 of 36

1

What is covered by the code of procedure?

Select one of the following:

  • just and Equitable business conduct and Equitable principles of trade

  • standardization of trading practices in the OTC market among members

  • complaints involving Trade Practices of members

  • anti-fraud measures involving new issues

Explanation

Question 6 of 36

1

If the current dividend distribution of a company's common stock has increased by 7%, while the market price has increased by 9%, the current yield of this stock has

Select one of the following:

  • increased

  • decreased

  • remained the same

  • fluctuated greatly

Explanation

Question 7 of 36

1

Which of the following terms could be applied to a mutual fund that does not charge a front-end load or a contingent deferred sales charge, but which does have a 12b - 1 fee of 1%?

Select one of the following:

  • no load

  • level load

  • spread load

  • directly marketed fund

Explanation

Question 8 of 36

1

An insurance company May override a variable life policy holders right to
I. Vote to change the investment policies of the separate account
I I. Receive a proxy, if available
Iii. Reject the selection of an investment adviser to the separate account

Select one of the following:

  • I only

  • 2 and 3 only

  • one two and three

  • none of the above

Explanation

Question 9 of 36

1

When examining the bid and ask quotations of two over-the-counter stocks that you follow, you notice that the spreads between their bid and ask prices are dramatically different. From this, you could probably assume that

Select one of the following:

  • the stock with the narrower spread is more active than the stock with the wider spread

  • the stock with the wider spread is more active than the stock with the narrower spread

  • the stock with the wider spread will always be less expensive in the long run

  • no conclusion can be drawn from this information

Explanation

Question 10 of 36

1

Which of the following is not a characteristic of an exchange?

Select one of the following:

  • set standards for Securities that trade on it

  • provides a place for buyer and sellers of Securities to meet

  • is the market where investors usually buy and sell mutual funds

  • must comply with SEC rules

Explanation

Question 11 of 36

1

The net investment income from an open-end investment company consist of

Select one of the following:

  • all profits from the investment companies operation

  • dividends, interest, and net capital gains on sales of portfolio securities

  • only net capital gains on sales of portfolio securities

  • only net income from dividends and interest paid on Securities in the fund's portfolio

Explanation

Question 12 of 36

1

Someone is interested in international investing. The RR send the prospect a prospectus for an international Equity Fund. Which of the following May the RR do in order to help the client understand that the risks of the fund?

Select one of the following:

  • highlight the relevant sections of the prospectus

  • create a short summary of the funds risk and give it to the client

  • provide the client with supplemental sales literature about the fund

  • tell the client to ignore the prospectus and read the statement of additional information instead

Explanation

Question 13 of 36

1

An investor wishes to establish a tax loss but still wants to own the same security. The customer sells the security at a loss and repurchase is it two weeks later. The tax loss is

Select one of the following:

  • established

  • recognized

  • disallowed

  • amortized

Explanation

Question 14 of 36

1

The rep has prepared a script and a slide presentation for a seminar. She will also hand out a brochure created by her firm and a prospectus for the funds. And this situation all of the following should be filed with finra except

Select one of the following:

  • the script

  • the slide presentation

  • the prospectus

  • the brochure

Explanation

Question 15 of 36

1

Which of the following statements is true of both common and preferred stocks?

Select one of the following:

  • both have a fixed dividend

  • the board of directors must declare the dividends for both

  • both are guaranteed to receive an annual dividend

  • both have an equal vote on corporate issues

Explanation

Question 16 of 36

1

Which of the following employment activities would RRs not have to report to their employing broker-dealer

Select one of the following:

  • , part-time employment as a bartender

  • participating as a silent partner in a relative's business

  • acting as the manager of a sporting good store on the weekends

  • operating an internet business from home as a sole proprietor

Explanation

Question 17 of 36

1

When making a recommendation of a high-risk mutual fund to a customer, which of the following is least important?

Select one of the following:

  • financial status

  • tax status

  • investment objectives

  • ability to sustain a large loss

Explanation

Question 18 of 36

1

Which of the following is a municipal Bond? Back by the full faith and credit of the issuer?

Select one of the following:

  • debenture

  • a revenue Bond

  • GO Bond

  • an income bond

Explanation

Question 19 of 36

1

The cash value of a variable life insurance policy is calculated

Select one of the following:

  • daily

  • weekly

  • monthly

  • annually

Explanation

Question 20 of 36

1

An investor who writes a check on a mutual fund account is

Select one of the following:

  • borrowing money from a bank

  • drawing on a cash deposit

  • redeeming mutual fund shares

  • using a revolving charge facility

Explanation

Question 21 of 36

1

An investor has been investing $100 a month and a contractual plan that has a 50% sales charge in the first year and a 4% sales charge per year after the first. What is the total amount of sales charge paid during the first 17 months?

Select one of the following:

  • $93

  • $450

  • $600

  • $620

Explanation

Question 22 of 36

1

Which of the following investment companies will not charge a management fee?

Select one of the following:

  • open-end investment companies

  • closed-end investment companies

  • face amount certificate companies

  • unit Investment trusts

Explanation

Question 23 of 36

1

Which of the following would be found in a mutual fund prospectus?

Select one of the following:

  • a list of Securities in the fund's portfolio

  • the phone's current nav

  • a description of the management fee

  • a balance sheet

Explanation

Question 24 of 36

1

An individual invest $400 per month into a front-end load contractual plan for 12 months and now wishes to terminate the plan. How much would the individual receive upon termination of the plan?

Select one of the following:

  • the total amount invested

  • the value of the account plus the sales charge

  • the value of the account plus a portion of the sales charge

  • nothing

Explanation

Question 25 of 36

1

One Prime objective objective of the Investment Company Act of 1940 is to

Select one of the following:

  • ensure that practices on stock exchanges are similar throughout the country

  • control the OTC market and prevent another market crash

  • ensure that individual investors are provided with full and fair disclosure regarding securities

  • ensure that individuals investing in investment company shares are fully informed and fairly treated

Explanation

Question 26 of 36

1

The value of an Investor's interest in a variable annuity during the accumulation period it's subject to fluctuation according to the

Select one or more of the following:

  • AIR

  • amount of money deposited

  • performance of the separate account

Explanation

Question 27 of 36

1

A company declares dividend, payable on June 5th to stockholders of record on May 20th. An investor who buys the stock and a regular way transaction on Tuesday, May 19th

Select one of the following:

  • is entitled to the dividend

  • is not entitled to the dividend because the stock is already selling ex-dividend

  • is entitled to a due bill

  • cannot settle the trade until June 5th

Explanation

Question 28 of 36

1

The Johnsons want to purchase life insurance that will provide the potential for appreciation of future benefits, but are uncertain how much to purchase due to the unpredictable nature of Alan's income. Which of the following is the most appropriate

Select one of the following:

  • whole life insurance

  • variable life insurance

  • universal life insurance

  • variable universal life insurance

Explanation

Question 29 of 36

1

A method of voting that gives larger substantial stockholders a greater degree of voting power over the smaller, less substantial stockholders would be

Select one of the following:

  • statutory voting

  • cumulative

  • voting by proxy

  • special majority voting

Explanation

Question 30 of 36

1

And uncle is a custodian for his minor nephews account. The nephew receives rights to subscribe to additional shares of stock held in the account. As custodian, the uncle can

Select one or more of the following:

  • sell the rights

  • subscribe to the stock offering

  • buy additional rides to subscribe if additional rights are needed

  • do whatever he considers to be in the best interest of the minor

Explanation

Question 31 of 36

1

An open-end investment company with the objective of growth wishes to change its investment objectives to growth and income. This may be done with

Select one of the following:

  • a majority vote of outstanding shares

  • a majority vote of the outstanding shareholders

  • at least 90% consent of the outstanding shareholders

  • the unanimous vote of the board of directors

Explanation

Question 32 of 36

1

If a customer has been refused an extension after 5 business days and has not paid for stock, and member firm

Select one of the following:

  • must cancel or otherwise liquidate the transaction by selling out the Securities promptly

  • must Sue the customer for the money

  • May Grant an extension if the member Deans the customer to be reliable

  • must close the customer's account

Explanation

Question 33 of 36

1

An investor who is studying various funds Holdings is interested in an equity income fund. The investor would most likely choose a fun holding Securities of

Select one of the following:

  • companies that consistently an above average income

  • companies with a liberal payout ratios

  • growth companies

  • companies whose bonds are rated investment grade

Explanation

Question 34 of 36

1

The management fee that a mutual fund pays to its investment advisor is

Select one of the following:

  • based on the amount of assets under management

  • part of the acquisition cost the purchaser must pay

  • a cost to the sponsor of the fund

  • a non-recurring expense of the sponsor

Explanation

Question 35 of 36

1

A US Government Bond is selling in the Market at 95.28. The dollar value of this bond is

Select one of the following:

  • $950.87

  • $952.80

  • $958.75

  • $9,587.50

Explanation

Question 36 of 36

1

The customer receives a confirmation for a Securities transaction. The confirmation discloses that the broker-dealer acted in the capacity of a dealer. This means the firm acted

Select one of the following:

  • agent

  • intermediary

  • principal

  • broker

Explanation

Previous
Next