Series 65 (Investment Vehicle
Characteristics) Exam 2025
Questions and Answers
Conversion ratio = - ANSWER✔✔-Par Value / Conversion Price
Conversion price = - ANSWER✔✔-Par Value / conversion ratio
Parity Price (common stock) = - ANSWER✔✔-Pref. Market price / conversion ratio
Parity Price (Pref. stock) = - ANSWER✔✔-common share price * conversion ratio
Rule 144 of Restricted stock - ANSWER✔✔-must be held for 6 months before resale
Rule 144 of control stock - ANSWER✔✔-can sell the greater of 1% of outstanding shares
or the four-week trading average, 4 times a year
Form 144 must be filed when an investor intends to trade controlled or restricted stock
in the next __ days - ANSWER✔✔-90
, Form 144 must only be filed if an investor intends to trade more than __ shares or $___
value of stock - ANSWER✔✔-5,000 shares or $50,000 total value
Form 144 is typically filed with what tool - ANSWER✔✔-EDGAR
Form 4 must be filed within __ days of a controlled stock transaction - ANSWER✔✔-2
A Qualified Institutional Buyer (QIB) has a minimum $__ in assets - ANSWER✔✔-100
million
T or F When a QIB is involved in a controlled or restricted stock purchase transaction,
rule 144 does not apply - ANSWER✔✔-True
T or F The 6 month holding period still applies when a QIB is selling controlled or
restricted stock - ANSWER✔✔-False
Corporate exclusion rule: exempt __ percent if owning less than 20% of a company, and
__ percent if owning 20% or more - ANSWER✔✔-50% and 65%
dividends are reported annually on IRS form - ANSWER✔✔-1099-DIV
capital gains are reported annually on IRS form - ANSWER✔✔-1099-B
Quick Ratio (QR) = - ANSWER✔✔-Current assets - inventory / current liabilities
Saucer Bottom formation is a __ __ trend and a __ indicator - ANSWER✔✔-reverse
downward, bullish
Characteristics) Exam 2025
Questions and Answers
Conversion ratio = - ANSWER✔✔-Par Value / Conversion Price
Conversion price = - ANSWER✔✔-Par Value / conversion ratio
Parity Price (common stock) = - ANSWER✔✔-Pref. Market price / conversion ratio
Parity Price (Pref. stock) = - ANSWER✔✔-common share price * conversion ratio
Rule 144 of Restricted stock - ANSWER✔✔-must be held for 6 months before resale
Rule 144 of control stock - ANSWER✔✔-can sell the greater of 1% of outstanding shares
or the four-week trading average, 4 times a year
Form 144 must be filed when an investor intends to trade controlled or restricted stock
in the next __ days - ANSWER✔✔-90
, Form 144 must only be filed if an investor intends to trade more than __ shares or $___
value of stock - ANSWER✔✔-5,000 shares or $50,000 total value
Form 144 is typically filed with what tool - ANSWER✔✔-EDGAR
Form 4 must be filed within __ days of a controlled stock transaction - ANSWER✔✔-2
A Qualified Institutional Buyer (QIB) has a minimum $__ in assets - ANSWER✔✔-100
million
T or F When a QIB is involved in a controlled or restricted stock purchase transaction,
rule 144 does not apply - ANSWER✔✔-True
T or F The 6 month holding period still applies when a QIB is selling controlled or
restricted stock - ANSWER✔✔-False
Corporate exclusion rule: exempt __ percent if owning less than 20% of a company, and
__ percent if owning 20% or more - ANSWER✔✔-50% and 65%
dividends are reported annually on IRS form - ANSWER✔✔-1099-DIV
capital gains are reported annually on IRS form - ANSWER✔✔-1099-B
Quick Ratio (QR) = - ANSWER✔✔-Current assets - inventory / current liabilities
Saucer Bottom formation is a __ __ trend and a __ indicator - ANSWER✔✔-reverse
downward, bullish
