Wiley Series 65 Exam Review 2016 + Test Bank · The Uniform Investment Advisor Law Examination (Wiley FINRA) by Securities-Institute-of-America -- Read -- Imperial Library of Trantor

Index

About the Series 65 Exam

Taking the Series 65 Exam How to Prepare for the Series 65 Exam? Why Do I Need to Take the Series 65 Exam? What Score Is Needed to Pass the Exam? Are There Any Prerequisites for the Series 65 Exam? How Do I Schedule an Exam? What Must I Take to the Exam Center? How Soon Will I Receive the Results of the Exam?

About This Book About the Test Bank About The Securities Institute of America Chapter 1: Equity Securities

What Is a Security? Equity = Stock Common Stock Corporate Time Line Values of Common Stock Book Value Par Value Rights of Common Stockholders Preemptive Rights Characteristics of a Rights Offering Determining the Value of a Right Cum Rights Determining the Value of a Right Ex Rights Voting Limited Liability Freely Transferable The Transfer Agent The Registrar CUSIP Numbers Inspection of Books and Records Residual Claim to Assets Why Do People Buy Common Stock? Income What Are the Risks of Owning Common Stock? How Does Someone Become a Stockholder? Preferred Stock Features of All Preferred Stock Types of Preferred Stock Callable Preferred Types of Dividends Dividend Distribution Taxation of Dividends Selling Dividends Dividend Disbursement Process Warrants How Do People Get Warrants? American DepositAry Receipts (ADRs)/American DepositAry Shares (ADSs) Currency Risks Functions of the Custodian Bank Issuing ADRs Real Estate Investment Trusts/REITs Direct Participation Programs and Limited Partnerships Limited Partnerships Tax Reporting for Direct Participation Programs Limited Partnership Analysis Tax Deductions vs. Tax Credits Other Tax Considerations Dissolving a Partnership Pretest

Chapter 2: Corporate and Municipal Debt Securities

Corporate Bonds Types of Bond Issuance Bond Pricing Par Value Discount Premium Corporate Bond Pricing Bond Yields Yield to Maturity: Premium Bond Yield to Maturity: Discount Bond Calculating the Yield to Maturity Calculating the Yield to Call Realized Compound Yield Returns Yield Spreads The Real Interest Rate Bond Maturities Series Issue Types of Corporate Bonds Guaranteed Bonds Convertible Bonds Converting Bonds into Common Stock Parity Price Advantages of Issuing Convertible Bonds Disadvantages of Issuing Convertible Bonds Convertible Bonds and Stock Splits The Trust Indenture Act of 1939 Bond Indenture Ratings Considerations Exchange Traded Notes (ETNs) Euro and Yankee Bonds Variable Rate Securities Retiring Corporate Bonds Municipal Bonds Types of Municipal Bonds Taxation of Municipal Bonds Tax-Equivalent Yield Purchasing a Municipal Bond Issued in the State in Which the Investor Resides Triple Tax Free Original Issue Discount (OID) and Secondary Market Discounts Amortization of a Municipal Bond's Premium Bond Swaps Analyzing Municipal Bonds Analyzing General Obligation Bonds Duration Convexity Bond Portfolio Management Pretest

Chapter 3: Government and Government Agency Issues

Series EE Bonds Series HH Bonds Treasury Bills, Notes, and Bonds Purchasing Treasury Bills Treasury Notes Treasury Bonds Treasury Bond and Note Pricing Treasury STRIPs Treasury Receipts Treasury Inflation Protected Securities (TIPS) Agency Issues Government National Mortgage Association (GNMA) Federal National Mortgage Association (FNM) Federal Home Loan Mortgage Corporation (FHLMC) Federal Farm Credit System Collateralized Mortgage Obligation (CMO) CMOs and Interest Rates Types of CMOs Pretest

Chapter 4: Investment Companies

Investment Company Philosophy Types of Investment Companies Open End vs. Closed End Diversified vs. Nondiversified Investment Company Registration Registration Requirements Investment Company Components Mutual Fund Distribution Selling Group Member Distribution of No-Load Mutual Fund Shares Distribution of Mutual Fund Shares Mutual Fund Prospectus Characteristics of Open-End Mutual Fund Shares Mutual Fund Investment Objectives Other Types of Funds Bond Funds Alternative Funds Valuing Mutual Fund Shares Sales Charges Other Types of Sales Charges Recommending Mutual Funds Calculating a Mutual Fund's Sales Charge Percentage Finding the Public Offering Price Sales Charge Reductions Breakpoint Schedule Letter of Intent Breakpoint Sales Rights of Accumulation Automatic Reinvestment of Distributions Other Mutual Fund Features Dollar Cost Averaging Mutual FUnds Voting Rights Mutual Fund Yields Portfolio Turnover Pretest

Chapter 5: Variable Annuities and Retirement Plans

Annuities Bonus Annuity Equity-Indexed Annuity Recommending Variable annuities Annuity Purchase Options Accumulation Units Annuity Units Annuity Payout Options Factors Affecting the Size of the Annuity Payment The Assumed Interest Rate (AIR) Taxation Types of Withdrawals Annuitizing the Contract Sales Charges Investment Management Fees Variable Annuity vs. Mutual Fund Retirement Plans Individual Plans Individual Retirement Accounts (IRAs) Corporate Plans Types of Plans Rolling Over a Pension Plan Employee Stock Options Employee Retirement Income Security Act of 1974 (ERISA) ERISA 404C SAFE HARBOR Life Insurance Tax Implications of Life Insurance Pretest

Chapter 6: Fundamental and Technical Analysis

Fundamental Analysis Balance Sheet Capitalization Changes in the Balance Sheet The Income Statement Industry Fundamentals Top-Down and BOTTOM-UP Analysis Dividend Valuation Models Technical Analysis Market Theories and Indicators Efficient Market Theory Statistical Analysis Market Capitalization Pretest

Chapter 7: Economic Fundamentals

Gross Domestic Product Recession Depression Economic Indicators Schools of Economic Thought Economic Policy Tools of the Federal Reserve Board INTEREST RATES Reserve Requirement Changing the Discount Rate Federal Open Market Committee Money Supply Disintermediation Moral Suasion Fiscal Policy International Monetary Considerations London Interbank Offered Rate / LIBOR Yield Curve Analysis Pretest

Chapter 8: Recommendations, Professional Conduct, and Taxation

Professional Conduct by Investment Advisers The Uniform Prudent Investors Act of 1994 Fair Dealings with Clients Recommending Mutual Funds Periodic Payment Plans Disclosure of Client Information Borrowing and Lending Money Developing the Client Profile Types of Advisory Clients Investment Objectives Capital Asset Pricing Model (CAPM) Risk vs. Reward Alpha Beta Expected Return Time Value of Money Weighted Returns Modern Portfolio Theory Predicting Portfolio Income Tax Structure Investment Taxation Calculating Gains and Losses Cost Base of Multiple Purchases Deducting Capital Losses Wash Sales Taxation of Interest Income Inherited and Gifted Securities Donating Securities to Charity Trusts Gift Taxes Estate Taxes Withholding Tax Corporate Dividend Exclusion Alternative Minimum Tax (AMT) Taxes on Foreign Securities Pretest

Chapter 9: Securities Industry Rules and Regulations

The Securities Act of 1933 The Prospectus The Final Prospectus SEC Disclaimer Misrepresentations The Securities Exchange Act of 1934 The Securities Exchange Commission (SEC) Extension of Credit Public Utilities Holding Company Act of 1935 Financial Industry Regulatory Authority (FINRA) The Trust Indenture Act of 1939 Investment Advisers Act of 1940 Investment Company Act of 1940 FINRA Member Communications with the Public FINRA Rule 2210 Communications with the Public Corporate Websites Blind Recruiting Ads Generic Advertising Tombstone Ads Testimonials Free Services Misleading Communications Securities Investor Protection Corporation Act of 1970 (SIPC) Net Capital Requirement Customer Coverage Fidelity Bond The Securities Acts Amendments of 1975 The Insider Trading and Securities Fraud Enforcement Act of 1988 Firewall The Telephone Consumer Protection Act of 1991 Exemption from the Telephone Consumer Protection Act of 1991 National Securities Market Improvement Act of 1996 The Uniform Securities Act Currency Transactions The Patriot Act Pretest

Chapter 10: Trading Securities

Types of Orders The Exchanges Priority of Exchange Orders The Role of the Specialist/DMM The Specialist/DMM Acting as a Principal The Specialist/DMM Acting as an Agent Crossing Stock Do Not Reduce (DNR) Adjustments for Stock Splits Stopping Stock Commission House Broker Two-Dollar Broker Registered Traders Super Display Book (SDBK) Short Sales Regulation of Short Sales/Regulation SHO Rule 200 Definitions and Order Marking Rule 203 Security Borrowing and Delivery Requirements Over the Counter/Nasdaq Market Makers Nasdaq Subscription Levels Nasdaq Quotes Nominal Nasdaq Quotes Nasdaq Execution Systems Nasdaq Market Center Execution System (NMCES) Nasdaq Opening Cross Non-Nasdaq OTCBB Pink OTC Third Market Fourth Market Broker vs. Dealer FINRA 5% Markup Policy Markups/Markdowns when Acting as a Principal Riskless Principal Transactions Proceeds Transactions Arbitrage Pretest

Chapter 11: Options

Option Classification Option Classes Option Series Bullish vs. Bearish Possible Outcomes for an Option Characteristics of All Options Managing an Option Position Buying Calls Maximum Gain Long Calls Maximum Loss Long Calls Determining the Breakeven for Long Calls Selling Calls Buying Puts Selling Puts Option Premiums In-the-Money Options At-the-Money Options Out-of-the-Money Options Intrinsic Value and Time Value Using Options as a Hedge Long Stock Long Puts/Married Puts Long Stock Short Calls/Covered Calls Short Stock Long Calls Short Stock Short Puts Futures and Forwards Correlation Pretest

Chapter 12: Definition of Terms

Security Person Broker Dealer Agent Issuer Nonissuer Investment Adviser Pension Consultants Investment Counsel Form ADV Investment Adviser Registration Database IARD Investment Adviser Representative Solicitor Access Person Institutional Investor Accredited Investor Qualified Purchaser Private Investment Company Offer/Offer to Sell/Offer to Buy Sale/Sell Guarantee/Guaranteed Contumacy Federally Covered Exemption Power of attorney Negotiable Certificate of Deposit Pretest

Chapter 13: Registration of Broker Dealers, Investment Advisers, and Agents

Registration of Broker Dealers and Agents changes in an Agent's Employment Mergers and Acquisitions of Firms Renewing Registrations Canadian Firms and Agents Investment Adviser Registration Advertising and Sales Literature Brochure Delivery The Role of the Investment Adviser Additional Compensation for an Investment Adviser Agency Cross Transactions Disclosures by an Investment Adviser Investment Adviser Contracts Additional Roles of Investment Advisers Private Investment Companies/Hedge Funds Fulcrum Fees Wrap Accounts Soft Dollars Pretest

Chapter 14: Securities Registration, Exempt Securities, and Exempt Transactions

Exempt Securities Securities Registration Exempt Securities/Federally Covered Exemption Exempt Transactions Private Placements/Regulation D Offerings RULE 144 RULE 147 Intrastate Offering Transactions with Financial Institutions Transactions with Fiduciaries Transactions with Underwriters Unsolicited Orders Transactions in Mortgage-Backed Securities Pledges Offers to Existing Securities Holders Preorganization Certificates Isolated Nonissuer Transactions Nonissuer Transactions Pretest

Chapter 15: State Securities Administrator: The Uniform Securities Act

North America Securities Administrators Association Actions by the State Securities Administrator Cancelation of a Registration Withdrawal of a Registration Actions Against an Issuer of Securities Rule Changes Administrative Orders Interpretive Opinions Administrative Records Investigations Civil and Criminal Penalties Jurisdiction of the State Securities Administrator Administrator's Jurisdiction over Securities Transactions Radio, Television, and Newspaper Distribution Right of Rescission Statute of Limitations Pretest

Answer Keys

Chapter 1: Equity Securities Chapter 2: Corporate and Municipal Debt Securities Chapter 3: Government and Government Agency Issues Chapter 4: Investment Companies Chapter 5: Variable Annuities and Retirement Plans Chapter 6: Fundamental and Technical Analysis Chapter 7: Economic Fundamentals Chapter 8: Recommendations, Professional Conduct, and Taxation Chapter 9: Securities Industry Rules and Regulations Chapter 10: Trading Securities Chapter 11: Options Chapter 12: Definition of Terms Chapter 13: Registration of Broker Dealers, Investment Advisers, and Agents Chapter 14: Securities Registration, Exempt Securities, and Exempt Transactions Chapter 15: State Securities Administrator: The Uniform Securities Act

Glossary of Exam Terms Index Advert Access Code EULA

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