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Uniform Securities Act > Practice Test 5 > Flashcards

Practice Test 5 Flashcards

1
Q

On an online platform, an investment adviser should be MOST concerned about? (as in concerned about NOT doing this)

A

Sharing a LINK to an investment strategy that’s been created by an individual who’s not affiliated with the adviser.

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1
Q

Certificates of interest along with their advertisement are regulated by

A

the Administrator

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2
Q

If alpha is 0%, beta is 1.0 and actual return is 12%. What is alpha if beta is 0.9 and the actual return is 10.6%

A

Multiply the new beta by the actual return and determine the difference with the new actual return.

12 x .9 = 10.8
10.8 - 10.6 - 0.2

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3
Q

Is incurring a surrender fee and signing a new annuity contract appropriate?

A

No.

Regardless of upcoming market corrections, incurring a surrender fee is not appropriate.

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4
Q

A contract between two parties to exchange a sequence of cashflows, one of which has a fluctuating value for a predetermined period.

A

a SWAP

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5
Q

What type of fund can be bought at a premium or discount to their net asset value?

A

ETFs

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6
Q

REIT’s only pass through

A

INCOME

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7
Q

A top-down approach to investing would generally include:

A
  1. Analysis of TRENDS
  2. Analysis of various industry sectors
  3. Analysis of specific companies within an industry sector
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8
Q

A sales representative of BROKER DEALER who sells only securities that are covered under federal exemption are

A

AGENTS

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9
Q

An assistant to a sales agent who accepts orders when the ageny is unavailable is an

A

AGENT

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10
Q

According to IA Act of 1940, an ACCESS person must submit their PERSONAL SECURITY HOLDINGS report by

A

No later than 10 days after becoming an access person; then at least 12 months thereafter.

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11
Q

RANGE

A

the DISTANCE between the lowest and highest numbers

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12
Q

MEAN

A

the average

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13
Q

MODE

A

The most FREQUENT number

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14
Q

MEDIAN

A

the MIDDLE number

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15
Q

What is INCLUDED in a client’s ADJUSTED GROSS INCOME

A

salary, tips, bonuses, dividends, and corporate bond interest

16
Q

What is included in a customer’s confirmation statement for a bond?

A

purchase price
date of transaction
whether bond is callable
investor’s yield to maturity

17
Q

An IAR who holds FULL DISCRETIONARY authority may:

A

Buy or sell securities in the account without consulting the customer AND withdraw money from the account.

18
Q

When taking disciplinary action against a person, the Administrator must:

A
  1. provide prior written notice
  2. provide an opportunity for a hearing
  3. provide written findings of fact and conclusions of law
19
Q

An equity-indexed annuity is a type of

A

Fixed annuity that offers the potential for greater returns

20
Q

Keeping a clients asset allocation properly balanced over the long term

A

STRATEGIC asset allocation

21
Q

According to NASAA – a private equity fund manager is NOT required to register as an investment adviser if the fund exclusively accepts investments from

A

QUALIFIED clients

22
Q

Tenants in common:

A

Provide each owner with an undivided interest in the property

23
Q

Changing the BALANCE in a portfolio in anticipation of changing market or economic conditions (TRENDS)

A

TACTICAL asset allocation

24
Q

Sophisticated definition of DOLLAR COST AVERAGING

QID:
1507496

A

Average PRICE of securities purchased will be MORE than the average COST of the securities over a long period

25
Q

What type of transactions are exempt transaction

A
  1. trustees involved in a bankruptcy
  2. sherriffs, marshals
  3. guardians
  4. fiduciares
  5. bona fide pledgee
  6. unsolicited, nonissuer transactions with retial or institutional clients
26
Q

When may advisers waive their fees if performance of a client’s account does not attain a certain level?

A

If the client SIGNS the CONTRACT

27
Q

What should be included in an ORDER MEMORANDUM

A
  1. terms and conditions of the order
  2. any specific instructions
  3. whether order was modified or cancelled
  4. the person connected with the IA who recommended the transaction
  5. the person who placed the order

Uniform Securities Act (9 decks)

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