Test topics kaplan series 66

Question 1

can you pay taxes past april 15

Answer 1

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

Question 2

custody with broker dealers vs ia

Answer 2

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

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

Question 3

definition of investment company does not include

Answer 3

holding company

Question 4

joint tenants means

Answer 4

JTWROS

Question 5

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

Answer 5

encrypted

Question 6

3 components of Sharpe ratio are

Answer 6

actual return-rfr/ standard deviation

Question 7

penalty years and money for

federal and state

Answer 7

fed is 5 years 10000

state is 3 years 5000

Question 8

contents of solicitors brochure

Answer 8

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

Question 9

tax dates for different organizations

Answer 9

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

Question 10

soft dollar arrangement

Answer 10

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

Question 11

in lieu of surety bond, administrator will accept

Answer 11

deposits of cash or securities

Question 12

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

Answer 12

no

Question 13

most hedge funds organized as

Answer 13

limited partnerships

Question 14

investment policy statement will not include

Answer 14

specific security selection

Question 15

step up provision does not apply when inheriting an

Answer 15

annuity

Question 16

1 advantage of mutual funds is

Answer 16

diversification

Question 17

broadest coverage of us stocks

Answer 17

wileshire 5000

Question 18

news letter exclusion goes away if

Answer 18

it is specifically published during specific market events

Question 19

2 items not on an order ticket are

Answer 19

current market price and client name or address

Question 20

selling away

Answer 20

effecting securities transactions off the books

Question 21

federal covered advisors must make notice filing

Answer 21

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)

Question 22

country funds

Answer 22

organized as closed end. concentrate investments in foreign countries

Question 23

a radio or television program is considered to originate in

Answer 23

the state where the microphone or television camera is located

Question 24

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

Answer 24

post a surety bond or maintain minimum net worth

Question 25

admin cancel registration if

Answer 25

person mentally incompetent can't be located death

Question 26

fundemental analysit like ___ratio more than____ratio

Answer 26

price to sales more than p/e

Question 27

futures most commonly used by

Answer 27

speculators while forwards are used by producers

Question 28

you are broker dealer if not if you

Answer 28

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

Question 29

anytime yield is higher than coupon you are at

Answer 29

discount

Question 30

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

Answer 30

hazardous occupation

Question 31

sharpe ratio measures

Answer 31

risk adjusted return

Question 32

who can share profits and losses with clients

Answer 32

agent only if broker dealer supply's written approval

Question 33

preservation of capital

Answer 33

cds first and then money market

Question 34

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

Answer 34

1 year after the effective date of withdraw of registration 2 years

Question 35

although registration normally takes 30 days

Answer 35

administrator can shorten period

Question 36

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

Answer 36

no

Question 37

if assessable stock is given, is it a sale

Answer 37

yes

Question 38

accredited investor

Answer 38

200000 single or 300000 joint

Question 39

affiliated person control person owns

Answer 39

5% officer director partner or employee 25% of outstanding shares

Question 40

deferred compensation plans discrimination and benefitis

Answer 40

it can discriminate and has benefits to retain employees.

Question 41

main difference between simple trust and complex trust is

Answer 41

simple trust must distribute all of its annual net income

Question 42

any change of information to u4 must be amended within

Answer 42

30 days

Question 43

are buy and hold suitable for wrap fee account

Answer 43

no

Question 44

legeslative risk vs regulatory

Answer 44

laws vs rules

Question 45

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

Answer 45

adjustable rate

Question 46

tactical is

Answer 46

active management

Question 47

american options vs European

Answer 47

american anytime European expiration date

Question 48

responsible for catch up previsions

Answer 48

egtrra

Question 49

during cooling off period underwriters may not they can

Answer 49

take orders distribute sales literature they can tombstone ads take indications of interest deliver prospectus

Question 50

viatical settlement

Answer 50

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

Question 51

book value represents

Answer 51

the liquidating value of the company, not its intrinsic value

Question 52

individuals applying for registration need finger prints?

Answer 52

no

Question 53

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

Answer 53

vacated

Question 54

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

Answer 54

average maturities.

Question 55

successor firms fee

Answer 55

federal has to pay fee | usa does not

Question 56

family balance sheet only included

Answer 56

assets and liabilities not income

Question 57

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

Answer 57

convexity

Question 58

do broker dealers need to hold customer tax returns

Answer 58

no

Question 59

record retention requirement for investment advisors is

Answer 59

5 years

Question 60

form adv e required when

Answer 60

the investment advisor maintains custody of customer funds

Question 61

advisors and insurance companies

Answer 61

the exception only applies to state law not federal

Question 62

discretionary aaa

Answer 62

activity asset amount price and time not discretionary

Question 63

options are what kind of securities

Answer 63

derivative

Question 64

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

Answer 64

head of household

Question 65

if trust or estate has income it is reported to

Answer 65

1041

Question 66

agent termination vs iar

Answer 66

agent termination means both parties notify adminstrator. if joins another then all 3 notifiy. iar only the iar must notifiy

Question 67

state registered advisor substantial payment Federal

Answer 67

More than 500 in 6 month period or more more than 1200

Question 68

variable life insurance voting

Answer 68

same as mutual funds one vote per unit(share)

Question 69

TIPS subject to but exempt from

Answer 69

federal tax state and local income taxes

Question 70

disclosure of capacity is required always for

Answer 70

broker dealers

Question 71

morality guarantee ceases once

Answer 71

contract is annuitized

Question 72

Capital needs analysis

Answer 72

determine how much life insurance is necessary to meet future needs

Question 73

Discounted cash flow definition

Answer 73

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

Question 74

how often can administrator require ongoing reports

Answer 74

quarterly

Question 75

CAPM or CML does not use

Answer 75

beta and alpha

Question 76

large cap midcap smallcap international

Answer 76

s and p 500 s and p400 russell 2000 eafe

Question 77

upon annuitization there is never a if lump sum happens for annuity even if non qualified

Answer 77

10% penalty even if occurs before 59 1/2 10% penalty if before 59/2 unless disability or death