Series 66 Practice Test
A state regulated IA falls below the minimum financial requirements. What are the next 2 steps and what
day do they occur? correct answers1. provide a notice to the state administrator the next day
2. file a statement of financial condition on the day after providing the notice
A spouse inherits her deceased husband's IRA.
What are her 3 options?
What is 1 thing she can't do? correct answers1. transfer IRA to her own name and make contributions (if
eligible)
2. treat it as an inherited IRA, which retains it's character
3. Use the the 5 year rule for distributions if the husband was under the age of 70.5
Shares of an REIT *are/are not* allowed in an IRA.
What about oil futures? correct answersare
no... all futures or just oil?
Value stocks tend to have:
_ EPS
_ P/E ratios
_ price to book value
,_ dividend yield correct answershigh
low
low
high
A person employed by an issuer is required to register under the USA when he is making a sale of a _
security to a _ investor. correct answersnon exempt
retail
Alpha = correct answersactual return - expected return
"What is the rate of annual compounding interest?" correct answersRule of 72
S1: Total years */* Amount of times investment doubled = how many years it takes for investment to
double once
S2: 72 / years it takes for investment to double once
Future value of money formula: correct answersPn = P0(1+r)^n
Are funds of hedge funds liquid?
So can they be redeemed at the end of the trading day? correct answersno, they are illiquid like a hedge
fund
no
Are employees of issuers considered agents? correct answerssometimes; like selling stock to the public
, Who are affiliates of an IA? (3) correct answers1. officers, partners, directors
2. nonclerical employees
3. any person directly or indirectly who owns, controls, or holds, 5% or more of the outstanding
securities
_ focuses on diversifying across various asset classes without significantly increasing risk. correct
answersmodern portfolio theory
A cash withdrawal from a life insurance policy is done via *LIFO/FIFO* correct answersFIFO
According to the IA act of 40, when you become an access person, you must submit your personal
security holdings no later than...
access person = officers, directors, parnters, and supervisors who have access to non public information
correct answers10 days after becoming an access person, then at lest every 12 months after
The IA act of '40 requires an access person to submit a transaction report no later than _ days after the
end of each _.
How does this differ from the USA? correct answers30 days
calendar quarter
USA is 10 days
An IA, under both acts, needs to record a transaction in a client's account within...
What security is exempt from this? correct answers10 days of the end of each quarter
direct obligations of the US gov't
A state regulated IA falls below the minimum financial requirements. What are the next 2 steps and what
day do they occur? correct answers1. provide a notice to the state administrator the next day
2. file a statement of financial condition on the day after providing the notice
A spouse inherits her deceased husband's IRA.
What are her 3 options?
What is 1 thing she can't do? correct answers1. transfer IRA to her own name and make contributions (if
eligible)
2. treat it as an inherited IRA, which retains it's character
3. Use the the 5 year rule for distributions if the husband was under the age of 70.5
Shares of an REIT *are/are not* allowed in an IRA.
What about oil futures? correct answersare
no... all futures or just oil?
Value stocks tend to have:
_ EPS
_ P/E ratios
_ price to book value
,_ dividend yield correct answershigh
low
low
high
A person employed by an issuer is required to register under the USA when he is making a sale of a _
security to a _ investor. correct answersnon exempt
retail
Alpha = correct answersactual return - expected return
"What is the rate of annual compounding interest?" correct answersRule of 72
S1: Total years */* Amount of times investment doubled = how many years it takes for investment to
double once
S2: 72 / years it takes for investment to double once
Future value of money formula: correct answersPn = P0(1+r)^n
Are funds of hedge funds liquid?
So can they be redeemed at the end of the trading day? correct answersno, they are illiquid like a hedge
fund
no
Are employees of issuers considered agents? correct answerssometimes; like selling stock to the public
, Who are affiliates of an IA? (3) correct answers1. officers, partners, directors
2. nonclerical employees
3. any person directly or indirectly who owns, controls, or holds, 5% or more of the outstanding
securities
_ focuses on diversifying across various asset classes without significantly increasing risk. correct
answersmodern portfolio theory
A cash withdrawal from a life insurance policy is done via *LIFO/FIFO* correct answersFIFO
According to the IA act of 40, when you become an access person, you must submit your personal
security holdings no later than...
access person = officers, directors, parnters, and supervisors who have access to non public information
correct answers10 days after becoming an access person, then at lest every 12 months after
The IA act of '40 requires an access person to submit a transaction report no later than _ days after the
end of each _.
How does this differ from the USA? correct answers30 days
calendar quarter
USA is 10 days
An IA, under both acts, needs to record a transaction in a client's account within...
What security is exempt from this? correct answers10 days of the end of each quarter
direct obligations of the US gov't
