Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Series 65 - My Notes > First Mock Exam > Flashcards

First Mock Exam Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 65 flashcards
1
Q

What ETF can do that mutual fund can’t

A

Sell short and be bought and sold on margin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Least exposure to reinvestment risk: STRIPS, Treasury notes, preferred stock in growth company, common stock in electric utility

A

STRIPS - no interest so no income to reinvest during period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Tactical

A

Active

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Strategic

A

Passive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Interest in a railroad equipment trust

A

Exempt security under Securities Act of 1933

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

ADR owners have these rights:

A

Right to sell in secondary market, right to receive the underlying foreign security, right to receive dividends in USD

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

ADR does not have this right

A

Right to sell ADR in the foreign market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Must file a Form 8-K when

A

Member of board resigns, control of company changes, significant amount of assets are disposed (only deals with domestic companies)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Number of subaccounts variable annuities can choose from

A

No limit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Who does not have preemptive rights?

A

Preferred stockholders

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Investment strategy where higher price is paid for a stock based on expected returns

A

Growth investing

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Required to open a margin account for a trust

A

Specific text in the trust agreement authorizing a margin account, approval of the account by the designated supervisory person, a margin agreement. A completed margin suitability form does not exist.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

ADRs…

A

Are issued by large domestic commercial banks and facilitate US trading in foreign securities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Gross margin

A

Revenues - cost of goods sold

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Statute of limitations for civil liability

A

Earlier of 3 years after date of sale or 2 years after discovery

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

True or false: broker dealer commissions must always be disclosed

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Statute of limitations for criminal liability

A

5 years

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

A lawsuit against a BD or adviser can be avoided if…

A

Restitution, costs, and interest are paid to a client

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

True or false: payment of restitution to a client prevents the Administrator from prosecution for violating the provisions of the act.

A

False

20
Q

TIPS adjusts principal value or return?

A

Principal value

21
Q

True or false: a record by security showing each client’s interest and location thereof is required only by advisers with custody

A

True

22
Q

Number of days customer has to respond to a rescission letter from a BD offering to buy back securities sold illegally

A

30

23
Q

If individual accumulates more than 5% in voting stock of a publicly traded company, notification must be made to and in how many days:

A

10 days. Exchange from security is traded, SEC, issuer’s board of directors. Do not have to notify Administrator.

24
Q

Writing an option provides all of the following:

A

Income, hedging, limited downside protection when long the underlying asset. Cannot offer maximum protection against loss.

25
Q

Investor’s investing experience and knowledge is asked on new account forms for

A

Options, stocks, bonds, commodities (not margin, retirement, or discretionary)

26
Q

Have specific net worth suitability requirements

A

Direct participation programs

27
Q

Equity straddle option

A

Option buyer is looking for market volatility,

option seller is looking for market stability

28
Q

When a pension consultant’s AUM reaches $200 milliion, who does it register with?

A

Can choose state or SEC

29
Q

Method for determining appropriate market price of common stock based on present value of all future dividends to be paid on that stock

A

Dividend discount model

30
Q

True or false: A right is a derivative

A

True

31
Q

Advisor that relies on either the venture capital adviser exemption or private fund advisor exemption

A

Exempt reporting adviser

32
Q

True or false: It is possible to receive distributions from a non-qualified annuity before age 59.5 without incurring tax penalties

A

True. Due to death or disability.

33
Q

True or false: Annuity exclusion ratio applies to accumulation units only.

A

False. Applies during the payout period.

34
Q

True or false: Security trades OTC if it trades anywhere other than on an exchange

A

True.

35
Q

Defined the term “federal covered adviser”

A

National Securities Markets Improvement Act of 1996

36
Q

Difference between the sum of the discounted cash flows that are expected from an investment and its initial cost

A

Net present value

37
Q

Difference between Customer Identification Program and new account opening rules of regulatory bodies

A

CIP requires date of birth while regulators only require proof of legal age

38
Q

True or false: IAs can charge both fees and commission

A

True (with disclosure)

39
Q

True or false: Administrator can cite a witness in contempt for refusing to appear at a hearing

A

False

40
Q

True or false: Administrator can issue a subpoena for the production of documents

A

True

41
Q

Maximum contribution to a Keogh

A

Lesser of 100% earned income or $6000

42
Q

True or false: BD must register in state if it has 1 retail client in it

A

True

43
Q

BD does not have to register in state when clients are

A

Other BDs, banks, investment companies, existing customers temporarily in state

44
Q

Registration filed with SEC must state

A

Biographies or board and officers, expected use of funds, expected range of offering price

45
Q

True or false: Portfolio manager expecting a rising market would want to take advantage of that by increasing beta

A

True

46
Q

True or false: Soliciting orders for unregistered, nonexempt securities is unlawful

A

True

47
Q

Business fails bc of new technology. Systematic or unsystematic risk?

A

Unsystematic business risk that can be helped unlike market risk.

Series 65 - My Notes (5 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions