Chapter 07 : Products and Plans Flashcards
1
Q
Define vesting.
A
The right an employee gradually acquires by length of service at a company to receive employer-contributed benefits
2
Q
Are breakpoints available when investing in UITs?
A
Yes
3
Q
What is a good way to obtain broad market exposure at a low cost?
A
Buy an index fund
4
Q
What are the three different types of investment companies?
A
1) Face Amount Certificate Companies 2) Unit Investment Trusts (UITs) 3) Management Companies
5
Q
Letters of Intent may be back-dated for _____ days.
A
Letters of Intent may be back-dated for 90 days.
6
Q
What is the maximum annual contribution to a 401(k)?
A
$19,000
7
Q
May a person contribute to her own 529 plan?
A
Yes
8
Q
IRA rollovers must be completed within ____ days.
A
IRA rollovers must be completed within 60 days.
9
Q
Is a letter of intent binding on the investor?
A
No. However, the letter is binding on the investment company.
10
Q
How are distributions from a zero cost basis investment taxed?
A
As ordinary income
11
Q
Sales charge is always expressed as a percentage of the ________.
A
Sales charge is always expressed as a percentage of the POP (public offering price).
12
Q
True or False: Dollar cost averaging (DCA) is a supervisory red flag.
A
False. DCA represents a systematic method of making investments in mutual funds.
13
Q
What is the maximum annual IRA contribution for a 58-year-old who only has investment income?
A
$0, since he has no earned income
14
Q
Identify the acronym: IRA
A
Individual Retirement Account
15
Q
What is forfeited if an investor redeems his open end shares within seven business days of purchase?
A
The sales charge is forfeited by the fund underwriter and dealer.
16
Q
Variable contract assets are placed in the insurance company’s ___________ account.
A
Variable contract assets are placed in the insurance company’s separate account.
17
Q
What funds are similar to an index fund, but trade in the secondary market like stock?
A
Exchange-Traded Funds (ETFs)
18
Q
True or False: Earnings generated in a non-qualified retirement plan are tax-deferred.
A
True
19
Q
On Monday at 11:00 a.m., a customer places a call to sell (redeem) her mutual fund shares. What price will she receive?
A
Monday’s NAV since she placed the order before 4:00 p.m.
20
Q
What price is paid for closed-end management company shares?
A
Market price plus a commission
21
Q
When is an individual (single filer) eligible to make tax-deductible contributions to a Traditional IRA?
A
When not covered by an employer-sponsored plan or when covered by a plan and below an adjusted gross income limit.
22
Q
An OID is sold prior to maturity. Is the capital gain (or loss) based on the original cost basis or accreted value?
A
The accreted value of the bond.
23
Q
According to industry rules, _____% is the maximum sales charge on mutual funds.
A
According to industry rules, 8.5% is the maximum sales charge on mutual funds.
24
Q
A father establishes a 529 plan for his son. Who is the owner of the account?
A
The father is the owner, while the son is the beneficiary.
25
Identify the acronym: FAC
Face-Amount Certificate
26
Only one IRA rollover is allowed per rolling ____ months.
Only one IRA rollover is allowed per rolling 12 months.
27
What is the tax consequence if a municipal bond is purchased at a secondary market discount and held to maturity?
The gain is taxed as ordinary income.
28
Letters of Intent are valid for ____ months.
Letters of Intent are valid for 13 months.
29
True or False: A structured product may be based on any type of security.
True
30
Is a mutual fund switch a taxable event?
Is a mutual fund switch a taxable event?
31
In a qualified annuity, how is the payout taxed?
The entire payout is taxed as ordinary income, since the annuity was funded with pre-tax dollars.
32
What share class carries a front-end load?
Class A
33
Identify the acronym: ETF
Exchange-Traded Fund
34
Is switching between annuity sub-accounts taxable?
No
35
When must IRA withdrawals begin in order to avoid the late withdrawal penalty?
By April 1st of the year after an individual turns age 72
36
What is the formula for determining the number of shares able to be purchased when reaching a breakpoint?
Dollars invested ÷ newly calculated offering price (based on the reduced sales charge)
37
After what age may traditional IRA plan contributions no longer be made?
As long as an individual has earned income, she’s able to contribute to a Traditional IRA regardless of her age.
38
In a 529 Plan, what happens if the funds are withdrawn, but not used for qualified education expenses?
The earnings would be subject to ordinary income tax plus a 10% penalty.
39
What ETF uses the Dow Jones Industrial Average as its benchmark index?
The DIA (diamonds)
40
What terms are synonymous with a mutual fund's Net Asset Value (NAV)?
Bid price or Redemption price
41
In a 529 plan, a donor may contribute up to $75,000 to be spread over how many years?
5 years
42
If an employer makes a Keogh contribution on its own behalf, what must be done for its employees?
A contribution at the same percentage must be made for the employee.
43
True or False: Contributions made to qualified retirement plans are tax-deductible.
True
44
How may a mutual fund be capitalized?
Mutual (open-end) funds may only issue common stock to raise capital.
45
A savings plan which funds both elementary and higher education is referred to as the ____________________________.
A savings plan which funds both elementary and higher education is referred to as the Coverdell Education Savings Plan.
46
At maturity, what will investors receive if a reverse convertible’s underlying asset is priced below the knock-in price?
The interest payments received and the ownership of shares in the devaluated asset
47
What type of investment company is priced once per business day?
Open-end investment companies (mutual funds)
48
May a brokerage firm conduct a mutual fund sales contest?
Yes, but the contest must not encourage the sale of specific funds.
49
Typically, investment companies are allowed no more than ____ days from request to complete a redemption.
Typically, investment companies are allowed no more than 7 days from request to complete a redemption.
50
If an employer made all of the contributions into a pension plan, what is the employee's cost basis?
Zero
51
In a one-year period, how many times may a qualified plan be transferred via a trustee transfer?
There is no limit to the number of trustee transfers.
52
In a non-qualified annuity, how is a return of capital taxed?
Tax-free, since it is part of the client's basis
53
True or False: Keogh plans follow a vesting schedule.
True. A scale would indicate how long an employee must remain with the employer to be fully vested.
54
Identify the acronym: LOI
Letter of Intent
55
A qualified annuity contract or retirement plan is typically funded with _____- tax funds.
A qualified annuity contract or retirement plan is typically funded with pre-tax funds.
56
True or False: The compensation for selling open-end investment company shares is larger than for publicly-offered DPPs.
False. The maximum sales charge on open-end investment companies is 8.5%, while DPPs have a 10% maximum.
57
Is a gift of $15,000 per person, per year, exempt from gift tax?
Yes
58
Mutual fund investors have an __________ interest in the securities in the portfolio.
Mutual fund investors have an undivided interest in the securities in the portfolio.
59
If not needed for a child's education, may the funds in a 529 Plan be transferred to a relative's 529 Plan?
Yes
60
When an individual reaches age ______, they may begin withdrawing from an IRA without penalty.
When an individual reaches age 59 1/2, they may begin withdrawing from an IRA without penalty.
61
The POP of a mutual fund is like the _____ price of a stock.
The POP of a mutual fund is like the ask price of a stock.
62
What type of insurance and annuity contracts require the delivery of a prospectus?
All contracts containing the word "variable" in their title
63
Contributions to a Keogh plan are solely based on _________________ income.
Contributions to a Keogh plan are solely based on self-employment income.
64
May an RR create her own breakpoint schedule?
No. RRs must follow the schedule found in the fund's prospectus.
65
Which plans impose income limitations on the contributors, 529 plans or Coverdell ESAs?
The Coverdell ESA
66
To which clients is an RR required to disclose breakpoints?
All clients, regardless of the size of the proposed investment
67
_____ Plans are college savings plans with high contribution limits set by the state sponsor.
529 Plans are college savings plans with high contribution limits set by the state sponsor.
68
The maximum contribution to an IRA is ____% of earned income up to $_______.
The maximum contribution to an IRA is 100% of earned income up to $6,000.
69
In a 529 plan, if the funds are not used by the beneficiary, to whom may the funds be transferred?
Other family members
70
Which is more expensive to own, a variable annuity or a mutual fund?
A variable annuity, since it typically has greater expenses due to the death benefit and mortality expenses
71
True or False: Excess contributions made to an IRA will still be deductible and will grow tax-deferred.
False. Excess contributions are non-deductible and will not grow on a tax-deferred basis.
72
How may taxation be deferred on a lump sum distribution from a qualified plan?
By rolling into another qualified plan within 60 days
73
May an aunt set up a 529 plan for her niece?
Yes. The donor is not required to be a parent.
74
Is a gift of $30,000 per married couple, per year, exempt from gift tax?
Yes
75
Describe the employees who must be eligible to contribute to an ERISA qualified plan.
Employees who are 21 years or older with one year of full-time service
76
What are some of the acceptable investments for IRA contributions?
Stocks, bonds, mutual funds, and CDs
77
The NAV of a mutual fund is like the _____ price of a stock.
The NAV of a mutual fund is like the bid price of a stock.
78
What does it mean to say "a limited partnership is a pass-through investment?"
The results of the business venture (profits and losses) flow through directly to the investor.
79
What is the main concern when an RR recommends that a client diversify among several fund families?
The client may lose out on the opportunity to receive a breakpoint.
80
With structured products, at what participation rate will investors receive all of the market increase?
100% participation rate
81
An investor has been purchasing mutual fund shares using dollar cost averaging. Is she guaranteed against loss?
No. The market may never recover.
82
Hank is a 71-year-old who has a Roth IRA. What penalty is assessed if Hank has failed to begin taking distributions?
There is no penalty, since Roth IRAs do not have RMDs.
83
For what reasons may an individual take an early withdrawal from his IRA without penalty?
Death, disability, qualified higher education, home buyer ($10,000 limit), birth or adoption of a child ($5,000 limit)
84
How is the discount on a municipal secondary market discount bond treated for tax purposes?
As ordinary income
85
If a gift to a 529 plan is made from joint property, what is the maximum amount that may be spread over a 5-year period?
$150,000 ($75,000 times 2)
86
What issues does the Russell 2000 ETF track?
Small-cap issues
87
May a Class B share be referred to as a "no-load" share?
No. This is a violation of FINRA rules.
88
What is the maximum permissible 12b-1 fee?
.75% (75 basis points). However, for no-load funds, the maximum 12b-1 fee is capped at .25%.
89
In an non-qualified annuity, how is a single distribution taxed?
Earnings first (LIFO)
90
If Joe is 55 years old, how much could he contribute to his IRA?
For anyone 50 or older, an additional $1,000 is allowed, making the maximum contribution $7,000.
91
True or False: Mutual fund shares may be purchased and sold in the secondary market.
False. Mutual funds are always considered new issues and are bought and sold through the fund.
92
True or False: Class B mutual fund shares offer a sales charge breakpoint.
False. B shares do NOT offer breakpoints of large purchases.
93
The annuity with growth dependent on the performance of securities in a separate account is called a __________ annuity.
The annuity with growth dependent on the performance of securities in a separate account is called a variable annuity.
94
To calculate the sales charge percentage for a mutual fund, the formula is: (______-______) ÷ ______
To calculate the sales charge percentage for a mutual fund, the formula is: (POP - NAV) ÷ POP
95
When rolling over a distribution from a qualified plan, when must the participant complete the transfer?
Within 60 days from the receipt of the funds from the old plan
96
If a contribution is to be made to a Coverdell, by what date is it required?
April 15th
97
To avoid income tax or penalties, by what age must funds in a Coverdell be used?
By age 30
98
True or False: A Coverdell Education Savings Account may only be used for college funding.
False. Coverdell contributions may be used for elementary, secondary, and post-secondary expenses.
99
What is the annual fee levied against a fund's assets and used to pay expenses of commissions and retail communications?
12b-1 fee
100
On Monday at 2:00 p.m., a customer places a call to sell her closed-end fund shares. What price will she receive?
The current bid price. Closed-end funds are traded throughout the day.
101
To calculate the POP for a mutual fund, the formula is: ______ ÷ (______ - ___________)
To calculate the POP for a mutual fund, the formula is: NAV ÷ (100% - Sales Charge %)
102
How often may a 529 plan be rolled over?
Once per year
103
The _________________________ is synonymous with the ask for a mutual fund.
The public offering price (POP) is synonymous with the ask for a mutual fund.
104
With a structured product, which party assumes an obligation?
The BD offering the structured product
105
With a structured product, who is responsible for repayment ?
The issuer of the product, not the issuer of the underlying securities.
106
True or False: The interest rate reset periods on Auction Rate Securities range from 7, to 28, or 35 days.
True
107
What privilege is utilized when mutual fund balances are combined in related accounts to obtain lower sales charges?
Rights of accumulation
108
The maximum 12b-1 fee on a no load fund is ___ basis points.
The maximum 12b-1 fee on a no load fund is 25 basis points.
109
A fund's management fee is typically calculated based on a percentage of _________________________.
A fund's management fee is typically calculated based on a percentage of assets under management.
110
How may a closed-end fund be capitalized?
Closed-end funds may issue bonds, common stock, or preferred stock to raise capital.
111
True or False: The market price of closed-end shares could be higher, lower, or equal to the NAV.
True. Shares can trade at a premium or discount to NAV based on supply and demand forces.
112
Anyone with __________ income may contribute to an IRA.
Anyone with earned income may contribute to an IRA.
113
What is the tax treatment of the distributions made by qualified retirement plans?
They are entirely taxed at ordinary income rates, since these plans have a zero cost basis.
114
A nonqualified annuity is funded with ______-tax dollars.
A nonqualified annuity is funded with after-tax dollars.
115
True or False: The investments in a Coverdell IRA are self-directed.
True
116
For what products is the participation rate important when determining the final payout at maturity?
Structured products
117
What is the tax consequence if a municipal Original Issue Discount (OID) bond is held to maturity?
Since the basis must be accreted up to par, there is no capital gain or loss when an OID is held to maturity.
118
What is the typical cost basis for a participant in a qualified retirement plan?
$0, since these plans are typically funded pre-tax.
119
What is a municipal OID?
An Original Issue Discount (OID) bond.
120
Describe the tax treatment of contributions made to a 529 Plan.
They are after-tax contributions that may possibly grow tax-free.
121
401(k) plans are used by _____-profit employers.
401(k) plans are used by for-profit employers. (Think traditional corporations.)
122
ERISA gave the U.S. Government jurisdiction over ___________________ plans.
ERISA gave the U.S. Government jurisdiction over private pension plans.
123
When must IRA rollovers be completed?
Within 60 days
124
What is the name of the fee paid to the fund's investment adviser?
Management fee
125
May an 85-year-old continue to contribute to a Roth IRA?
Yes, provided she has earned income.
126
How is the phantom interest on an OID treated for tax purposes?
It is considered interest income on a municipal bond, and therefore, tax exempt.
127
Since mutual funds are considered primary market issues, they must be sold by ____________.
Since mutual funds are considered primary market issues, they must be sold by prospectus.
128
A fund can be purchased below its NAV. What type of fund is it?
The fund must be a closed-end fund that is trading at a discount
129
May an individual with a Keogh Plan also fund an IRA?
Yes, but since the Keogh is a qualified plan, the IRA contributions may not be tax-deductible.
130
True or False: Promoting the purchase of certain fund shares due to an impending dividend payment is acceptable.
False. Selling dividends is prohibited. Since the dividend is imbedded in the share price, there is no monetary benefit.
131
What restrictions exist in describing a fund as no load?
It may have no front-end or deferred sales charge, and a 12b-1 fee cannot exceed .25%.
132
The Russell 2000 Index measures the performance of the ______-cap segment of U.S. equities.
The Russell 2000 Index measures the performance of the small-cap segment of U.S. equities.
133
How often will VRDOs adjust their interest rate?
At specified intervals such as daily, weekly, or monthly. VRDOs may allow owners to put (sell) back to the issuer.
134
An RR attends a training meeting for her firm. What must be obtained for her to be reimbursed for attendance costs?
She must have obtained her firm's approval to attend the meeting.
135
She must have obtained her firm's approval to attend the meeting.
True
136
True or False: Variable annuities are subject to registration requirements of the Act of 1933 and sold by prospectus.
True
137
What is a mutual fund's largest expense?
The management fee paid to its investment adviser
138
How is a Roth IRA contribution different from a Traditional IRA contribution?
The Roth IRA contribution is always made on an after-tax basis.
139
To what is a reverse convertible structured product linked?
To the performance of an unrelated reference asset - often a single stock or basket of stocks, or an index
140
The ___________________ is synonymous with the bid for a mutual fund.
The net asset value (NAV) is synonymous with the bid for a mutual fund
141
A reverse convertible typically contains what two components?
A debt instrument that pays an above-market coupon and a derivative (often a put option)
142
True or False: To lower sales charges, investors add mutual fund purchases in all accounts using Rights of Accumulation.
True. However, the purchases must all be from the same fund family.
143
A ______ is a type of investment company which has a fixed portfolio of securities and is supervised, not managed.
A UIT is a type of investment company which has a fixed portfolio of securities and is supervised, not managed.
144
True or False: Funds invested in a college savings plan may be used in any state.
True
145
True or False: To avoid a late withdrawal penalty, IRAs have a required minimum distribution (RMD) provision.
True
146
Identify the acronym: UIT
Unit Investment Trust
147
A mutual fund family is also referred to as a mutual fund __________.
A mutual fund family is also referred to as a mutual fund complex.
148
True or False: 529 plans allow for a five-year front-end contribution of $75,000, which avoids gift tax.
True ($15,000 x 5 years)
149
What is the tax consequence if a municipal bond is purchased at a premium and sold prior to maturity?
A capital gain or loss determined by the difference between the adjusted basis and the proceeds of the sale
150
What is a mutual fund switch?
The redemption of one fund and the purchase of another (It may be within the same or different fund families.)
151
What share class carries a level load?
Class C
152
What is the tax consequence if a municipal bond is purchased at a premium and held to maturity?
Since the basis must be amortized down to par, there is no capital gain or loss when a premium bond is held to maturity.
153
On Monday at 10:00 a.m., a customer places a call to buy an ETF. What price will she pay?
The current ask (offer). ETFs are traded throughout the day.
154
Name the two types of 529 plans.
Pre-paid college tuition plans and college savings plans
155
A non-qualified annuity contract is typically funded with ______-tax funds.
A non-qualified annuity contract is typically funded with after-tax funds.
156
True or False: Contributions made to non-qualified retirement plans are tax-deductible.
False. The contributions are non-deductible.
157
____________________ is the prohibited practice of RRs encouraging clients to buy a fund to capture a dividend.
Selling dividends is the prohibited practice of RRs encouraging clients to buy a fund to capture a dividend.
158
How much may be contributed to a Coverdell each year?
An after-tax contribution of $2,000 is allowed per year.
159
What is the tax treatment of distributions made by non-qualified retirement plans?
Since contributions are made after-tax, only the earnings portion is taxable at ordinary income rates.
160
What periods must be covered in retail communication regarding mutual fund performance?
One, five, and 10 years
161
True or False: A breakpoint sale is a prohibited action of selling shares at just under where breakpoints are available.
True
162
True or False: In the same year, funds may be contributed to both a 529 plan and a Coverdell account.
True
163
What are Auction Rate Securities (ARS)?
Long-term bonds (municipal or corporate) with a variable interest rate set periodically through a Dutch Auction
164
For what items may soft dollars be used?
Research reports and educational seminars, but not for items that does not benefit the client
165
What do the differences in mutual fund share classes represent?
The different methods by which the sales charge is collected
166
True or False: Class B shares are eligible for breakpoints.
False. Only Class A shares are eligible for breakpoints.
167
True or False: The accretion of the cost basis on a municipal original issue discount is tax-free.
True
168
How much may a married couple earning $325,000 contribute to a Roth IRA?
$0, since the couple's income exceeds the income threshold
169
What is the tax consequence if a municipal Original Issue Discount (OID) bond is sold prior to maturity?
A capital gain or loss determined by the difference between the adjusted basis and the proceeds on the sale
170
A contribution of $_______ can be made to a Spousal IRA for a non-working spouse.
A contribution of $6,000 can be made to a Spousal IRA for a non-working spouse.
171
After the initial offering, where are shares of a closed-end management company purchased?
In the secondary market (like shares of stock)
172
May clients invest in an out-of-state 529 plan?
Yes. Clients may choose to invest either in-state or out-of-state.
173
What price is paid for mutual fund shares?
The Public Offering Price (POP). POP = NAV + Sales Charge (if applicable).
174
Which type of annuity is considered a security, fixed or variable?
Variable
175
The _______ fee is assessed against the fund's assets to pay for marketing and distribution costs.
The 12b-1 fee is assessed against the fund's assets to pay for marketing and distribution costs.
176
What does the following quote indicate about the fund? NAV: $9.20 POP: $9.20
It's a no-load fund.
177
True or False: A BD may NOT make a market in mutual fund shares.
True. Member firms may only buy fund shares to fill a existing customer order or for its own investment account.
178
The process of adjusting the basis of an Original Issue Discount bond up to par over its life is called ____________.
The process of adjusting the basis of an Original Issue Discount bond up to par over its life is called accretion.
179
True or False: Earnings generated in a qualified retirement plan are tax-free.
False. The earnings are tax-deferred.
180
Name some of the different types of Direct Participation Programs (DPPs).
General partnerships, limited partnerships, joint ventures, Subchapter S corporations
181
Who funds a 529 plan?
The donor
182
How does the Dutch Auction set the interest rate on Auction Rate Securities?
It sets the lowest interest rate at which all the securities being offered will clear the market (net clearing rate).
183
Who receives the benefit from a 529 plan?
The beneficiary
184
With what should a client be concerned if an RR recommends changing fund families?
The specific motivation. For example, the RR may be involved in churning.
185
A reverse convertible is a type of ___________ product.
A reverse convertible is a type of structured product.
186
There is a ____% penalty for early withdrawals from an IRA.
There is a 10% penalty for early withdrawals from an IRA.
187
Prospectus delivery is required for all ___________ insurance contracts.
Prospectus delivery is required for all variable insurance contracts.
188
What is the typical life of a reverse convertible security?
One year or less
189
Identify the acronym: CDSC
Contingent Deferred Sales Charge
190
What technique can be used to roll assets from one annuity into another without taxation?
A 1035 Exchange
191
Identify the acronym: POP
Public Offering Price
192
The sale of a mutual fund is also known as a share _____________.
The sale of a mutual fund is also known as a share redemption.
193
When showing mutual fund returns, what time periods must be included?
1, 5, and 10 years or life of the fund if less
194
May closed-end funds issue more than one type of security?
Yes. Closed-end funds may issue common stock, preferred stock, or bonds.
195
Forward pricing is used in the redemption of _________ investment company shares.
Forward pricing is used in the redemption of open-end investment company shares.
196
May a wholesaler sponsor a seminar for RRs?
Yes, but only reasonable expenses of the RR may be reimbursed.
197
At maturity, what will investors receive if a reverse convertible’s underlying asset is priced above the knock-in price?
The high coupon for the life of the investment plus the full principal amount
198
Funds offer ______________________ to allow buyers to add all purchases made from a fund family to reduce sales charge.
Funds offer Rights of Accumulation to allow buyers to add all purchases made from a fund family to reduce sales charge.
199
What share class carries a back-end load?
Class B
200
True or False: A self-employed individual with a Keogh plan is not required to make contributions for others.
False. Full-time employees who are 21 or older must receive contributions at the same percentage as the employer.
201
May an employee of a corporation who contributes to a corporate pension plan also contribute to a Keogh plan?
Yes, provided the Keogh contribution is solely based upon the employee's self-employment income.
202
Clients redeeming mutual fund shares must be paid within ___ calendar days.
Clients redeeming mutual fund shares must be paid within 7 calendar days.
203
True or False: If a mutual fund investor chooses to reinvest dividends, taxes will be deferred.
False
204
Grandparents contributing to a grandchild's 529 plan may give how much money and still avoid gift tax consequences?
Front-loading five years of contributions is allowed; therefore, each could contribute $75,000 for a total of $150,000.
205
What determines the value of an ETF in the secondary market?
Supply and demand
206
True or False: Mutual fund retail communication must show the maximum sales charge and include all fees and expenses.
True
207
For every rolling 12 months, how many times may a qualified plan be transferred via a rollover?
Once
208
True or False: A single filer earning more than $110,000 may NOT contribute to a Coverdell account.
True. Additionally, the ceiling for joint filers is $220,000.
209
Define the term rollup.
The combining of several smaller DPPS into one larger partnership or trust
210
What are some of the investments that are not suitable for IRA contributions?
Collectibles, insurance, and metals (except U.S. gold and silver coins)
211
A structured product often contains a _____ and an _______ component.
A structured product often contains a debt and an equity component.
212
Identify the acronym: NAV
Net Asset Value
213
Breakpoints are calculated based on all purchases made within a single ______________.
Breakpoints are calculated based on all purchases made within a single fund family.
214
A 1035 exchange is a process used to rollover a college savings plan.
False. A 1035 exchange is used in the insurance industry and the variable contract market.
215
According to ERISA, are there any standards that must be followed regarding how money is invested?
Yes. The plan's trustee must abide by the Uniform Prudent Investor Act.
216
The strike price for conversion on a reverse convertible is also called the _________ price.
The strike price for conversion on a reverse convertible is also called the knock-in price.
217
Define breakpoint.
Dollar levels of investment purchases that qualify for a reduced sales charge
218
Does ERISA permit the writing of covered calls in retirement plans?
Yes
