Series 7 exam 4 Questions and Answers | 100% Pass

Series 7 exam 4 Questions and Answers | 100% Pass #130. Costs associated with variable annuities that are not included in the sales charge may include a) Investment management fees and administrative expenses. b) Premium taxes. c) Mortality risk fee and expense risk fee. d) All of the above. - Answer️️ -D. These charges are not included in the sales charge. Depending upon the contract, all are possible expenses or ongoing charges that are deducted from the separate account. #129. A prospectus can no longer be used if financial information is older than TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 2/32 a) 90 days. b) 12 months. c) 13 months. d) 16 months. - Answer️️ -D. A prospectus must contain current information about the investment company, and therefore, a prospectus that includes financial information more than 16 months old can no longer be sent out to prospective customers. #128. The NAV of a mutual fund is $15 per share and the sales charge is 8%. The POP is a) $13.80. b) $15.80. c) $16.30. d) TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 3/32 $17.00. - Answer️️ -C. To calculate the POP, use this formula: NAV/(100% - sales charge); $15/(100%-8%); $15/.92 = $16.30. #124. The MSRB's anti-money laundering rules require that a municipal broker/dealer's procedures contain I. An employee training program. II. A designated independent party to test the procedures. III. Perpetrator forfeiture rules. IV. SRO reporting procedures. a) I and II b) I and IV c) II and III d) III and IV - Answer️️ -A. In addition, the procedures must contain features to detect suspicious activity and money laundering activity as well as customer identification procedures. #120. XYZ Corp is planning a subsequent primary offering to raise additional capital for expansion. One of the executives at XYZ Corporation has a large holding of TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 4/32 unregistered shares which he would like to sell in the open market. Which of the following would be the most suitable offering for this situation? a) Registered secondary b) Subsequent primary c) Shelf offerings d) Combined offering - Answer️️ -D. #114. A corporation can avoid registration requirements in the issuance of securities by engaging in a private placement under a) Rule 144. b) Rule 147. c) Regulation D. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 5/32 d) Regulation A. - Answer️️ -C. private placement conditions are covered under reg D. #112. Which of the following is NOT a characteristic of SIMPLE plans? a) There are liberal loan provisions for hardships. b) They are available to employers with 100 or fewer employees. c) No other qualified plan can be in place. d) There is a mandatory employer match up of up to 3% of an employee's salary. - Answer️️ -A. SIMPLE plans are available to employers with 100 or fewer employees. Loans are not permitted with SIMPLE plans. #111. According to FINRA rules, which of the following falls under the definition of an independently prepared reprint? TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 6/32 a) A copy of a newspaper display ad listing the broker/dealer's services b) A copy of an investment company ranking prepared by the research department of the broker/dealer c) A copy of a magazine article on retirement planning issued by a publisher that is not affiliated with the member d) An excerpt from a monthly market letter prepared by the broker/dealer and previously approved by FINRA - Answer️️ -C. Independently prepared reprint means any reprint of an article or its excerpt issued by a publisher not affiliated with the member using the reprint.