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BL class notes > Test topics kaplan series 66 > Flashcards

Test topics kaplan series 66 Flashcards

1
Q

can you pay taxes past april 15

A

no you can only get an extension to file your taxes later

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2
Q

custody with broker dealers vs ia

A

broker dealers just need to provide receipt apon receiving customer assets.

ias do not usually take custody and can’t do this

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3
Q

definition of investment company does not include

A

holding company

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4
Q

joint tenants means

A

JTWROS

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5
Q

broker dealers and investment advisors backing up client data should make sure it is

A

encrypted

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6
Q

3 components of Sharpe ratio are

A

actual return-rfr/ standard deviation

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7
Q

penalty years and money for

federal and state

A

fed is 5 years 10000

state is 3 years 5000

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8
Q

contents of solicitors brochure

A

name of solicitor and advisor
relationship
fact that solicitor receives compensation and whether client pays specific charge or higher advisory fee

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9
Q

tax dates for different organizations

A

sole april 15
c corp april 15
single member llc april 15
multi member llc march 15

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10
Q

soft dollar arrangement

A

means of paying brokerage firms for there services through commission revenue.

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11
Q

in lieu of surety bond, administrator will accept

A

deposits of cash or securities

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12
Q

if administrator in a wishes to investigate a bd registered in state a but whose office is in state b does it need okay from b admin

A

no

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13
Q

most hedge funds organized as

A

limited partnerships

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14
Q

investment policy statement will not include

A

specific security selection

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15
Q

step up provision does not apply when inheriting an

A

annuity

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16
Q

1 advantage of mutual funds is

A

diversification

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17
Q

broadest coverage of us stocks

A

wileshire 5000

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18
Q

news letter exclusion goes away if

A

it is specifically published during specific market events

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19
Q

2 items not on an order ticket are

A

current market price and client name or address

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20
Q

selling away

A

effecting securities transactions off the books

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21
Q

federal covered advisors must make notice filing

A

if they have a place of business in the state or have 6 or more clients in the state in a 12 month period(regardless of place of business)

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22
Q

country funds

A

organized as closed end. concentrate investments in foreign countries

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23
Q

a radio or television program is considered to originate in

A

the state where the microphone or television camera is located

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24
Q

the administrator may require advisor who has custody of funds or has discretion to

A

post a surety bond or maintain minimum net worth

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25
Q

admin cancel registration if

A

person mentally incompetent
can’t be located
death

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26
Q

fundemental analysit like ___ratio more than____ratio

A

price to sales more than p/e

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27
Q

futures most commonly used by

A

speculators while forwards are used by producers

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28
Q

you are broker dealer if

not if you

A

you have place of business in state

you have one retail client in the state

don’t have place of business
clients are other bd’s institutions and issuers

registered in state where you maintain place of business and only do that with snow bireds

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29
Q

anytime yield is higher than coupon you are at

A

discount

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30
Q

application for disability insurance coverage can be denied in the case of

A

hazardous occupation

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31
Q

sharpe ratio measures

A

risk adjusted return

32
Q

who can share profits and losses with clients

A

agent only if broker dealer supply’s written approval

33
Q

preservation of capital

A

cds first and then money market

34
Q

for any of the 4 securities professionals, administrator retains jurisdiction for a period of

finra rule is

A

1 year after the effective date of withdraw of registration

2 years

35
Q

although registration normally takes 30 days

A

administrator can shorten period

36
Q

broker dealers who meet net capital requirements for sec need to meet any for anyone else?

A

no

37
Q

if assessable stock is given, is it a sale

A

yes

38
Q

accredited investor

A

200000 single or 300000 joint

39
Q

affiliated person

control person owns

A

5% officer director partner or employee

25% of outstanding shares

40
Q

deferred compensation plans discrimination and benefitis

A

it can discriminate and has benefits to retain employees.

41
Q

main difference between simple trust and complex trust is

A

simple trust must distribute all of its annual net income

42
Q

any change of information to u4 must be amended within

A

30 days

43
Q

are buy and hold suitable for wrap fee account

A

no

44
Q

legeslative risk vs regulatory

A

laws vs rules

45
Q

for investors looking for fixed income through preferred stocks which is the least appropriate choice

A

adjustable rate

46
Q

tactical is

A

active management

47
Q

american options vs European

A

american anytime

European expiration date

48
Q

responsible for catch up previsions

A

egtrra

49
Q

during cooling off period underwriters may not

they can

A

take orders
distribute sales literature

they can tombstone ads
take indications of interest
deliver prospectus

50
Q

viatical settlement

A

creates opportunities for terminally ill patients to receive money by selling their life insurance death benefits for more than cash surrender value

51
Q

book value represents

A

the liquidating value of the company, not its intrinsic value

52
Q

individuals applying for registration need finger prints?

A

no

53
Q

when the conditions that led to the issuance of the stop order have changed for the better, the term to use to describe lifting of the stop order is

A

vacated

54
Q

when doing cash flow analysis on mortgage backed securities you would want to know

A

average maturities.

55
Q

successor firms fee

A

federal has to pay fee

usa does not

56
Q

family balance sheet only included

A

assets and liabilities not income

57
Q

what is most useful for determening the price volatility of a bond

A

convexity

58
Q

do broker dealers need to hold customer tax returns

A

no

59
Q

record retention requirement for investment advisors is

A

5 years

60
Q

form adv e required when

A

the investment advisor maintains custody of customer funds

61
Q

advisors and insurance companies

A

the exception only applies to state law not federal

62
Q

discretionary aaa

A

activity
asset
amount

price and time not discretionary

63
Q

options are what kind of securities

A

derivative

64
Q

if you are a single parent with dependent children you can file as

A

head of household

65
Q

if trust or estate has income it is reported to

A

1041

66
Q

agent termination vs iar

A

agent termination means both parties notify adminstrator. if joins another then all 3 notifiy.

iar only the iar must notifiy

67
Q

state registered advisor substantial payment

Federal

A

More than 500 in 6 month period or more

more than 1200

68
Q

variable life insurance voting

A

same as mutual funds one vote per unit(share)

69
Q

TIPS subject to but exempt from

A

federal tax

state and local income taxes

70
Q

disclosure of capacity is required always for

A

broker dealers

71
Q

morality guarantee ceases once

A

contract is annuitized

72
Q

Capital needs analysis

A

determine how much life insurance is necessary to meet future needs

73
Q

Discounted cash flow definition

A

model used in which future cash flows are discounted back to PV using time value of money. Investments worth equal to present value of all projected future cash flows

74
Q

how often can administrator require ongoing reports

A

quarterly

75
Q

CAPM or CML does not use

A

beta and alpha

76
Q

large cap
midcap
smallcap
international

A

s and p 500
s and p400
russell 2000
eafe

77
Q

upon annuitization there is never a

if lump sum happens for annuity even if non qualified

A

10% penalty even if occurs before 59 1/2

10% penalty if before 59/2 unless disability or death

BL class notes (3 decks)

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