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Related Flashcards
Cards In This Set
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The current quote of a fund shows a NAV of $15 with an offering price of $20. What type of fund is this ?
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Closed-end fund
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Which two of the folloeing are subsets of the Nasdaq system? I. OTC Bulletin Board II. Global Market III. Pink Sheets IV. Capital Market
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II. and IV
II. Gobal Market and IV. Capital Market
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For single filers, the ability to contribute begines to phase out when the AGI reaches $95,000. For joint filers, the ability ot contrubute begins to pahse out when the AIG reaches $190,000. Are both these statement true reading the income limits for contributing to a Coverdell Education Savings Account?
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YES - Additonally some inividuals are unable to fund Coverdell Education Savings Accounts due to income limits . Currently, the ability to contribute phase out for individuals with AGI above $95,000 and joint filers with AGI above $190,000.
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All of the following are refund provisions of spread load plans EXCEPT (A) partial refund of sales charges for cancellations made within 18 months of purchase. (B) refund of the current market value for cancellations made after 45 days (C) 45-day right of resicission following the mailing of the "free look" letter.
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(A) partial refund of sales charges for cancellations made within 18 months of purchase.... The special rescission optin within 18 months of purchas is not aviaiable to holders of spread load plans. This is because in the first 3 to 4 years of the plan the sales charge is relatively even, unlike a fornt -end load plan where the sales charge is 50% in the first year. All of the other choices are within the reund provisins of spread load plans.
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A taxable equivalent yield is calculated when an investor is considering a municipal bond investment. What is the purpose of this calculation?
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TO put a municipal investment on a level playing field with a taxable investement..... Muni bonds interest earned is usually tax-exempt and offer a lower yield than taxable investments, ie corporate bonds.
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A customer opening a new account may be subject ot backup withholdings for failure ot complete a?
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IRS Form W-9
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True of False An IPO with continuous issuance and redemption of shares best describe the capital structure of an open-end fund?
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TRUE- Open -end funds use a continuous initail pubic offering process. Every share an investor purchases is a brand new one, and all shares redeemed with the fund are never used again.
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Variable annuity separate accounts house and invest investor contributions. Which two of the following investments would be more likely to be found in a separate account than a general account?
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I. Real estate, II. Common stock, III. Treasury bonds, IV. Junk bonds
The correct answer is II.Common stock and IV. Treasury bonds.
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Bonnie Francis, an RR has a client Emile that is preparing to buy his first home in about two years According to his client profile, his main investment goal is aggressive growth. Which of the following investments would be suitable for the majority of Emile's savings?
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(A) Blue chips equities, (B) T- bills (C) Non-Nasdaq equities, A high yield bond fund
The correct answer is -T- Bills
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The bondholder can change her holdings into stock of the same company. Is this true regarding a convertible bond?
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TRUE- A convertible bond gives the bondholder the right to trade in her bond for shares of common stock of the same company.
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12b-1 fees are charged against the assets of the fund to defray distribution expenses and will reduce an investor's return. Ture or false?
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TRUE- 12b-1 fees are used to offset distribution expenses and are assessed against the assets of the fund at a prescribed annual precentage rate. 12b-1 fees may be assessed on Class A,B,C, and no-load shares.
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Once a FINRA hearing panel determines that a registered person has violated a FINRA rule, it can penalize that rep. Which of the following actin are NOT allowable under FINRA Code of Procedure?
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(A) Censure, (B) Imposition of prision time, (C) fine (D) Expulsion from FINRA
The correct answer is (B) Imposition of prison time.
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Ken Staydacorse has been investing $1,000 a month for the last 5 months in the Nexis top 10 Select Fund. He has purchased shares at $20, $25, $30, $20 and $25. What is the difference between Ken's average cost and average price per share?
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(A) $5,000, (B)$0.56, (C)$10.00 (D) Nothing, they are the same number. The correct answer is (B)$0.56...Ken's average price is calculated by adding together all of his purchase prices and dividing by five ($120/5-$24.00) His average cost per shares purchased.
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For which two of the following do common stockholders have the right to vote? I. Stock dividends II. Stock splits III. Cash dividends IV. Directors
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The correct answer is (C) II. Stock Splits and IV. Directors
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An investor owns 100 shares of stock that usually pays a 25 cent per share dividend per quarter. Last year, the stock paid a dividend for only three out of four quarters. what are the tax consequences to the individual for the year?
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The correct answer is (A) $75 taxed at capital gains rates.
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