Test topics kaplan series 66 Flashcards
can you pay taxes past april 15
no you can only get an extension to file your taxes later
custody with broker dealers vs ia
broker dealers just need to provide receipt apon receiving customer assets.
ias do not usually take custody and can’t do this
definition of investment company does not include
holding company
joint tenants means
JTWROS
broker dealers and investment advisors backing up client data should make sure it is
encrypted
3 components of Sharpe ratio are
actual return-rfr/ standard deviation
penalty years and money for
federal and state
fed is 5 years 10000
state is 3 years 5000
contents of solicitors brochure
name of solicitor and advisor
relationship
fact that solicitor receives compensation and whether client pays specific charge or higher advisory fee
tax dates for different organizations
sole april 15
c corp april 15
single member llc april 15
multi member llc march 15
soft dollar arrangement
means of paying brokerage firms for there services through commission revenue.
in lieu of surety bond, administrator will accept
deposits of cash or securities
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
no
most hedge funds organized as
limited partnerships
investment policy statement will not include
specific security selection
step up provision does not apply when inheriting an
annuity
1 advantage of mutual funds is
diversification
broadest coverage of us stocks
wileshire 5000
news letter exclusion goes away if
it is specifically published during specific market events
2 items not on an order ticket are
current market price and client name or address
selling away
effecting securities transactions off the books
federal covered advisors must make notice filing
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)
country funds
organized as closed end. concentrate investments in foreign countries
a radio or television program is considered to originate in
the state where the microphone or television camera is located
the administrator may require advisor who has custody of funds or has discretion to
post a surety bond or maintain minimum net worth
admin cancel registration if
person mentally incompetent
can’t be located
death
fundemental analysit like ___ratio more than____ratio
price to sales more than p/e
futures most commonly used by
speculators while forwards are used by producers
you are broker dealer if
not if you
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
anytime yield is higher than coupon you are at
discount
application for disability insurance coverage can be denied in the case of
hazardous occupation
sharpe ratio measures
risk adjusted return
who can share profits and losses with clients
agent only if broker dealer supply’s written approval
preservation of capital
cds first and then money market
for any of the 4 securities professionals, administrator retains jurisdiction for a period of
finra rule is
1 year after the effective date of withdraw of registration
2 years
although registration normally takes 30 days
administrator can shorten period
broker dealers who meet net capital requirements for sec need to meet any for anyone else?
no
if assessable stock is given, is it a sale
yes
accredited investor
200000 single or 300000 joint
affiliated person
control person owns
5% officer director partner or employee
25% of outstanding shares
deferred compensation plans discrimination and benefitis
it can discriminate and has benefits to retain employees.
main difference between simple trust and complex trust is
simple trust must distribute all of its annual net income
any change of information to u4 must be amended within
30 days
are buy and hold suitable for wrap fee account
no
legeslative risk vs regulatory
laws vs rules
for investors looking for fixed income through preferred stocks which is the least appropriate choice
adjustable rate
tactical is
active management
american options vs European
american anytime
European expiration date
responsible for catch up previsions
egtrra
during cooling off period underwriters may not
they can
take orders
distribute sales literature
they can tombstone ads
take indications of interest
deliver prospectus
viatical settlement
creates opportunities for terminally ill patients to receive money by selling their life insurance death benefits for more than cash surrender value
book value represents
the liquidating value of the company, not its intrinsic value
individuals applying for registration need finger prints?
no
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
vacated
when doing cash flow analysis on mortgage backed securities you would want to know
average maturities.
successor firms fee
federal has to pay fee
usa does not
family balance sheet only included
assets and liabilities not income
what is most useful for determening the price volatility of a bond
convexity
do broker dealers need to hold customer tax returns
no
record retention requirement for investment advisors is
5 years
form adv e required when
the investment advisor maintains custody of customer funds
advisors and insurance companies
the exception only applies to state law not federal
discretionary aaa
activity
asset
amount
price and time not discretionary
options are what kind of securities
derivative
if you are a single parent with dependent children you can file as
head of household
if trust or estate has income it is reported to
1041
agent termination vs iar
agent termination means both parties notify adminstrator. if joins another then all 3 notifiy.
iar only the iar must notifiy
state registered advisor substantial payment
Federal
More than 500 in 6 month period or more
more than 1200
variable life insurance voting
same as mutual funds one vote per unit(share)
TIPS subject to but exempt from
federal tax
state and local income taxes
disclosure of capacity is required always for
broker dealers
morality guarantee ceases once
contract is annuitized
Capital needs analysis
determine how much life insurance is necessary to meet future needs
Discounted cash flow definition
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
how often can administrator require ongoing reports
quarterly
CAPM or CML does not use
beta and alpha
large cap
midcap
smallcap
international
s and p 500
s and p400
russell 2000
eafe
upon annuitization there is never a
if lump sum happens for annuity even if non qualified
10% penalty even if occurs before 59 1/2
10% penalty if before 59/2 unless disability or death
