Wiley Series 6 Exam Review 2013 + Test Bank: The Investment Company Products/Variable Contracts Limited Representative Examination

INDICE: ABOUT THE SERIES 6 EXAM XV ABOUT THIS BOOK XIX ABOUT THE TEST BANK XXI ABOUT THE SECURITIES INSTITUTE OF AMERICA XXIII CHAPTER 1 SECURITIES MARKETS, INVESTMENT RISKS, AND POLICIES 1 What Is a Security? 1 Equity = Stock 2 Debt = Bonds 2 Capitalization 2 The Balance Sheet Equation 3 Common Stock 3 Corporate Time Line 3 Values of Common Stock 5 Rights of Common Stockholders 5 Why Do People Buy Common Stock? 8 What Are the Risks of Owning Common Stock? 9 How Does Someone Become a Stockholder? 9 Preferred Stock 11 Features of Preferred Stock 11 Types of Preferred Stock 12 Types of Dividends 14 Dividend Distribution 15 Taxation of Dividends 17 Selling Dividends 17 Dividend Disbursement Process 17 Rights 17 Possible Outcomes for a Right 18 Standby Underwriting 19 Warrants 19 How Do People Get Warrants? 19 Possible Outcomes of a Warrant 20 Options 20 Calls 20 Puts 21 Bullish vs. Bearish 21 Characteristics of All Options 22 Exercise Price 22 Buyer vs. Seller 22 Possible Outcomes for an Option 22 American Depositary Receipts/American Depositary Shares 23 Currency Risks 23 Securities Markets 23 The Exchanges 24 Over the Counter/Nasdaq 24 Market Makers 24 Third Market 25 Fourth Market 25 Broker vs. Dealer 25 Debt Securities/Bonds 26 Corporate Bonds 26 The U.S. Government 26 U.S. Government Agencies 27 Municipal 27 Types of Bond Issuance 27 Bond Certificate 28 Bond Pricing 29 Par Value 29 Discount 30 Premium 30 Corporate Bond Pricing 30 Treasury Bond and Note Pricing 30 Treasury Bill Pricing 31 Municipal Bond Pricing 31 Types of Corporate Bonds 33 Secured Bonds 34 Unsecured Bonds 35 Zero Coupon Bonds 35 Convertible Bonds 36 Converting Bonds into Common Stock 36 Parity Price 37 The Trust Indenture Act of 1939 37 Treasury Bills, Notes, and Bonds 38 Purchasing Treasury Bills 38 Treasury STRIPS 39 Treasury Receipts 39 Nonmarketable Government Securities 39 Agency Issues 40 Collateralized Mortgage Obligation (CMO) 41 CMOs and Interest Rates 42 Municipal Bonds 42 Legal Opinion 43 Municipal Bond Insurance 44 Tax Equivalent Yield 44 Purchasing a Municipal Bond Issued in the State in Which the Investor Resides 45 Triple Tax–Free 45 Capital Gains 45 The Money Market 45 Money Market Instruments 45 Corporate Money Market Instruments 46 Government Money Market Instruments 47 Interest Rates 47 Economics 48 Gross Domestic Product 49 Recession 50 Depression 50 Economic Policy 50 Tools of the Federal Reserve Board 51 Fiscal Policy 52 The Consumer Price Index 53 Inflation/Defl ation 53 Real GDP 53 International Monetary Considerations 54 Issuing Corporate Securities 54 Types of Underwriting Commitments 55 Types of Off erings 56 Awarding the Issue 56 The Underwriting Syndicate 57 Selling Group 57 Customer Suitability 58 Investment Objectives 59 Tax Benefits 60 Liquidity 60 Speculation 61 Beta 61 Risk vs. Reward 62 Pretest 65 CHAPTER 2 INVESTMENT COMPANIES, MUTUAL FUNDS, NEW ACCOUNTS, AND TAXES 71 Investment Company Philosophy 71 Types of Investment Companies 72 Open End vs. Closed End 73 Diversified vs. Nondiversifi ed 74 Investment Company Registration 75 Registration Requirements 75 Investment Company Components 77 Mutual Fund Distribution 79 Selling Group Member 79 Distribution of No–Load Mutual Fund Shares 79 Distribution of Mutual Fund Shares 80 Mutual Fund Prospectus 80 Characteristics of Open–End Mutual Fund Shares 81 Mutual Fund Investment Objectives 82 Other Types of Funds 84 Bond Funds 84 Exchange–Traded Funds (ETFs) 85 Exchanged–Traded Notes (ETNs) 85 Money Market Funds 86 Money Market Guidelines 86 Valuing Mutual Fund Shares 86 Changes in the NAV 87 Sales Charges 88 Other Types of Sales Charges 89 12B–1 Fees 89 Calculating a Mutual Fund’s Sales Charge Percentage 90 Finding the Public Off ering Price 91 Sales Charge Reductions 91 Breakpoint Schedule 92 Letter of Intent 92 Backdating a Letter of Intent 93 Breakpoint Sales 93 Rights of Accumulation 93 Automatic Reinvestment of Distributions 94 Other Mutual Fund Features 94 Taxation of Mutual Funds 95 Distribution of Capital Gains 96 Receiving and Reinvesting Distributions 97 Calculating Gains and Losses 98 Cost Base of Multiple Purchases 98 Deducting Net Capital Losses 99 Wash Sales 99 Other Tax Rules 100 Voting Rights 100 Mutual Fund Recommendations 101 Customer Accounts 103 Holding Securities 104 Transfer and Ship 105 Transfer and Hold in Safekeeping 105 Hold in Street Name 105 Mailing Instructions 105 Trading Authorization 106 Types of Accounts 106 Death of a Customer 107 Corporate Accounts 108 Operating a Discretionary Account 108 Managing Discretionary Accounts 109 Uniform Gifts to Minors Act (UGMA) 109 Accounts for Employees of Other Broker Dealers 111 Purchasing Mutual Fund Shares 111 Withdrawal Plans 115 Pretest 117 CHAPTER 3 VARIABLE ANNUITIES, VARIABLE LIFE INSURANCE, AND RETIREMENT PLANS 123 Annuities 123 Annuity Purchase Options 127 Accumulation Units 127 Annuity Units 128 Annuity Payout Options 128 Factors Aff ecting the Size of the Annuity Payment 129 The Assumed Interest Rate 129 Taxation 130 Types of Withdrawals 130 Annuitizing the Contract 131 Expenses and Guarantees 131 Other Charges 132 Variable Annuity vs. Mutual Fund 132 Life Insurance 132 Premiums and Death Benefi ts 134 Assumed Interest Rate 136 Variable Policy Features 136 Sales Charges 137 Life Settlements 138 Retirement Plans 139 Individual Plans 139 Individual Retirement Accounts (IRAs) 139 529 Plans 142 IRA Contributions 142 IRA Accounts 143 IRA Investments 143 It Is Unwise to Put a Municipal Bond in an IRA 143 Rollover vs. Transfer 143 Keogh Plans (HR–10) 144 Tax–Sheltered Annuities/Tax–Deferred Accounts 145 Corporate Plans 147 Nonqualifi ed Corporate Retirement Plans 147 Qualifi ed Plans 148 Types of Plans 148 Profi t Sharing Plans 149 401(k) Thrift Plans 150 Rolling Over a Pension Plan 150 Employee Retirement Income Security Act of 1974 (ERISA) 150 Pretest 153 CHAPTER 4 SECURITIES INDUSTRY RULES AND REGULATIONS 159 Issuing Securities 159 The Prospectus 160 The Final Prospectus 160 SEC Disclaimer 161 Misrepresentations 161 Tombstone Ads 161 Free Riding and Withholding/FINRA Rule 5130 162 The Securities Exchange Act of 1934 162 The Securities Exchange Commission (SEC) 163 Extension of Credit 164 The National Association of Securities Dealers (NASD) 164 Becoming a Member of FINRA 166 Registration of Agents/Associated Persons 167 Disciplinary Actions Against a Registered Representative 167 Resignation of a Registered Representative 168 Termination for Cause 168 Retiring Representatives/Continuing Commissions 168 State Registration 169 Continuing Education 169 Firm Element Continuing Education 169 Regulatory Element 169 Registration Exemptions 170 Persons Ineligible to Register 170 Retail Communications / Communications with the Public 171 FINRA Rule 2210 Communications with the Public 172 Broker Dealer Websites 174 Blind Recruiting Ads 175 Generic Advertising 175 Tombstone Ads 175 Testimonials 176 Free Services 176 Misleading Communications with the Public 177 Securities Investor Protection Corporation Act of 1970 (SIPC) 177 Net Capital Requirement 177 Customer Coverage 178 Fidelity Bond 178 The Insider Trading and Securities Fraud Enforcement Act of 1988 178 Firewall 179 The Telephone Consumer Protection Act of 1991 180 Exemption from the Telephone Consumer Protection Act of 1991 180 Recommendations to Customers 180 Recommending Mutual Funds 181 Periodic Payment Plans 182 Mutual Fund Current Yield 182 Professional Conduct in the Securities Industry 183 The Role of the Principal 183 Fair Dealings with Customers 183 Sharing in a Customer’s Account 186 Borrowing and Lending Money 187 Disclosure of Client Information 187 Numbered Accounts 187 Gift Rule 187 Outside Employment 188 Private Securities Transactions 188 Violations and Complaints 188 Resolution of Allegations 189 Minor Rule Violation 189 Code of Arbitration 190 The Arbitration Process 190 Simplifi ed Arbitration 191 Larger Disputes 191 Awards Under Arbitration 191 Mediation 191 Annual Compliance Review 192 Currency Transactions 192 The Patriot Act 192 U.S. Accounts 193 Foreign Accounts 194 Regulation S–P 194 Business Continuity Plan 194 Pretest 195 ANSWER KEYS 201 GLOSSARY OF EXAM TERMS 207 INDEX 273

• ISBN: 978-1-118-67108-5
• Editorial: John Wiley & Sons
• Encuadernacion: Rústica
• Páginas: 312
• Fecha Publicación: 13/08/2013
• Nº Volúmenes: 1
• Idioma: Inglés