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Series 65 - My Notes > Things I Don't Know > Flashcards

Things I Don't Know Flashcards

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Series 65 flashcards
1
Q

True or false: Disclosure of the relationship between an investment advisor and a solicitor is always required.

A

False. Not required when service involves impersonal advisory services only.

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2
Q

True or false: There is a redemption fee with a money market mutual fund.

A

False

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3
Q

Requirements for a preorganization subscription to be an exempt transaction:

A

1 - No payment may be made by any subscriber
2 - No commission may be paid to anyone for soliciting potential subscribers
3 - There may be no more than ten subscribers

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4
Q

True or false: A preorganization certificate may be advertised.

A

True

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5
Q

The average portfolio maturity of a money market mutual fund cannot exceed ___ days

A

60

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6
Q

SEC requires that money market funds’ investments be limited to securities that are rated in the top __ ratings categories

A

2

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7
Q

True or false: Sale of treasury bills to an individual client is an exempt transaction

A

False. Exempt security but not exempt transaction

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8
Q

Final approval of annual operating budget for US is given by

A

Congress

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9
Q

True or false: Control over a Qualified Tuition Plan/ Section 529 passes to the student once withdrawals commence

A

False

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10
Q

Publicly traded corps may furnish a Form ___ instead of an annual report

A

10-K

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11
Q

True or false: Anyone who represents an issuer in effecting transactions between the underwriter and issuer is excluded from the definition of an agent under the USA

A

True

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12
Q

Which account does a donor have the most control over? UTMA, Section 529, Coverdell ESA, UGMA

A

Section 529 - can take money back, keeps control once student starts withdrawing, etc

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13
Q

Defined as a sale: gift of assessable or nonassessable stock

A

Gift of assessable stock

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14
Q

The SEC may suspend all trading on a specific exchange for up to __ days

A

90

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15
Q

The SEC may summarily suspend trading on a particular nonexempt security for up to __ days

A

10

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16
Q

True or false: The SEC may suspend trading on exempt securities

A

False

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17
Q

Specialized funds have this stated objective

A

Capital appreciation

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18
Q

Definition of pension consultant

A

Person who provides investment advice to administrators of employee benefit plans

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19
Q

True or false: an investment advisory contract’s term may not exceed 1 year

A

False

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20
Q

Two securities Administrator has power to revoke exemption for:

A

Non-profits and employee benefit plans

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21
Q

True or false: Administrator can revoke any transaction exemption

A

False. Can revoke all but federal covered security transactions

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22
Q

An investment advisor makes advice his ___ activity

A

Regular

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23
Q

True or false: Coverdells may only be used by persons who fall within certain income limits

A

True

24
Q

If money is not used in a 529 plan, it reverts to the __

A

Donor

25
Q

If money is not used in a Coverdell plan, it reverts to the __

A

Beneficiary

26
Q

A private placement can be offered to no more than __ noninstitutional investors

A

10

27
Q

True or false: Local companies that issue common stock sold only within the state are not required to register with the Administrator

A

False

28
Q

True or false: Convertible bonds are more sensitive to the price of the underlying stock than they are to interest rates

A

True

29
Q

True or false: Equity index annuities offer unlimited gain

A

False

30
Q

True or false: Equity index annuities offer a minimum return

A

True

31
Q

True or false: Equity index annuities are considered securities

A

False

32
Q

True or false: Benefits of a nonqualified deferred compensation arrangement are guaranteed

A

False

33
Q

True or false: If the transaction in which the security is sold is exempt, this would exempt the security from registration

A

True

34
Q

What must be given to client participating in wrap fee program?

A

Appendix 1 of Form ADV Part 2A

35
Q

True or false: Adviser who issues research reports on corporate securities would not be considered an adviser

A

False

36
Q

Loan consent agreement permits a firm to

A

Loan out a customer’s margin securities

37
Q

Expense ratio =

A

Expenses / Average Annual Net Assets

38
Q

True or false: Municipal bonds are a prohibited investment in an IRA

A

False. Inappropriate but not prohibited

39
Q

When interest rates fall, prepayments of mortgages ___

A

Increase

40
Q

IA may receive compensation based on share of capital gains if:

A

The client has $1M in AUM or has net worth of $2.1M

41
Q

True or false: Investment advisors are excluded from the definition of broker dealer

A

False

42
Q

True or false: Agents, issuers, and banks are excluded from the definition of broker dealer

A

True

43
Q

When an investment adviser wants to increase its fees, it must

A

1 - disclose promptly only to those customers who will be affected by the change through a new brochure
2 - disclose in the summary of material changes in the annual updating amendment to the SEC

No need to tell unaffected customers or Administrator

44
Q

True or false: ETFs have a limited number of outstanding shares

A

False

45
Q

True or false: Closed end investment companies are traded on registered stock exchanges

A

True

46
Q

True or false: ETFs rarely stray far from NAV

A

True

47
Q

Eurodollar bonds are denominated in ___

A

USD

48
Q

Eurodollar bonds are issued within or outside of the US?

A

Outside

49
Q

European option

A

Can only be exercised on expiration date

50
Q

Regulation D (private placement) must file Form D

A

No later than 15 days after the first sale

51
Q

True or false: If divorced prior to 2019, alimony is considered eligible income for an IRA

A

True

52
Q

True or false: Investment firms must appoint a chief compliance officer?

A

True

53
Q

Education IRA =

A

Coverdell ESA

54
Q

REITs must distribute ___% of net investment income and must invest ___% of assets in real estate related activities

A

90% and 75%

55
Q

USA criminal penalty fine

A

$5000

Series 65 - My Notes (5 decks)

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