Series 65 Exam-Prep Final || Questions and 100% Verified
Answers.
If proper filing fees are not paid with the registration statement the Administrator will most
likely correct answers Enter a denial order that will be released when the fees are received.
In the event the proper filing fees are not received, the Administrator will issue a denial order
that will be released upon receipt of the fees.
Which of the following orders are kept in the specialist's book? correct answers Limit
Market public orders are executed without delay unless specifically designated as "not held"
(hold for a better time or price) or "not public" (execute away from the trading pit).
Which of the following are true about NASDAQ? I. Not all OTC securities trade on NASDAQ.
II. NASDAQ is an auction market. III. NASDAQ has set trading hours. IV. Certain NYSE stocks
trade on NASDAQ. correct answers I and III
NASDAQ is the electronic pricing bulletin board (and exchange) for only those OTC securities
that meet its listing requirements. There is no physical location, it is not an auction market, and
no NYSE-listed securities trade on NASDAQ.
An employee quits her job where she has a balance of $10,000 in her employer-provided
qualified plan. If she requests that the plan distribution is paid to her so that she can roll the
proceeds into an IRA, how much will she receive from the plan administrator, and how long does
she have to complete the tax-free rollover? correct answers $8,000, 60 days
Because the employee has requested a distribution check, there will be a 20% withholding, and
the participant has 60 days to reinvest it in an IRA to qualify as a tax-free rollover. The full
amount of $10,000 must be reinvested, or the withheld amount of 20% will be considered a
taxable distribution.
If two securities have a correlation coefficient of 0, the securities prices would correct answers
Be moving independent from each other.
If the correlation coefficient is 0, then the two securities would have no correlation to each other
as far as their price movement.
Which of the following are characteristics of the interbank system? I. Decentralized; II. Not
regulated; III. Responds to national economic policies; IV. Accommodates retail investors
correct answers I and II
The interbank market is not regulated, nor is it centralized. Unlike the Federal Reserve Board, it
does NOT respond to U.S. economic conditions and policies; it is a market for large banks and
multinational companies, not retail investors.
, Which of the following are lagging indicators? I. Unemployment rate II. Weekly initial
unemployment claims III. Duration of unemployment IV. Nonfarm payrolls correct answers I
and III
The weekly unemployment claims number indicates where employment is moving, and is thus a
leading indicator. Nonfarm payrolls is a coincident indicator.
If an agent solicits or sells an unregistered security, he may avoid civil liabilities by correct
answers Making an offer of rescission.
The offer or sale of an unregistered security is a violation of the Act and the purchaser has a right
of rescission. The agent cannot avoid the liabilities by obtaining any written waivers or
documents from the customer.
When is an investment adviser representative's registration effective? correct answers Only
during employment with an adviser
The representative's registration is effective only while he or she is employed by an investment
adviser. When an investment adviser representative begins or terminates an association with an
investment adviser, the investment adviser must promptly notify the administrator. This differs
from the requirements for a broker/dealer and agent whereby both are required to notify the
administrator.
A bond that sells above par is known as a premium bond. Which of the following statements are
true? correct answers Nominal yield is the highest yield.
The nominal yield will always be the highest yield on a premium bond. The nominal yield is the
same as the coupon rate.
Which of the following statement is NOT true concerning the De Minimis rule and its
application to agents? correct answers The agent may transact business for up to 90 days in a
state in which his registration is still pending.
The agent must be eligible to register in the state; the agent's broker/dealer must be registered in
the state; the agent must be registered with FINRA, and must already be registered in at least one
other state. If an agent's application is pending in that state, the agent can effect transactions for
up to 30 days for a client who has moved to that state. An agent can conduct business with a
current client who is temporarily in the state.
XYZ Industries has outstanding 9% debentures convertible at $25. The trust indenture for the
debentures contains an "anti-dilution" clause. If the company distributes a 10% stock dividend on
the common stock, an investor who owns 10 XYZ Industries debentures would receive which of
the following? correct answers A notice that the conversion price of his bonds has been reduced
to $22.73
Answers.
If proper filing fees are not paid with the registration statement the Administrator will most
likely correct answers Enter a denial order that will be released when the fees are received.
In the event the proper filing fees are not received, the Administrator will issue a denial order
that will be released upon receipt of the fees.
Which of the following orders are kept in the specialist's book? correct answers Limit
Market public orders are executed without delay unless specifically designated as "not held"
(hold for a better time or price) or "not public" (execute away from the trading pit).
Which of the following are true about NASDAQ? I. Not all OTC securities trade on NASDAQ.
II. NASDAQ is an auction market. III. NASDAQ has set trading hours. IV. Certain NYSE stocks
trade on NASDAQ. correct answers I and III
NASDAQ is the electronic pricing bulletin board (and exchange) for only those OTC securities
that meet its listing requirements. There is no physical location, it is not an auction market, and
no NYSE-listed securities trade on NASDAQ.
An employee quits her job where she has a balance of $10,000 in her employer-provided
qualified plan. If she requests that the plan distribution is paid to her so that she can roll the
proceeds into an IRA, how much will she receive from the plan administrator, and how long does
she have to complete the tax-free rollover? correct answers $8,000, 60 days
Because the employee has requested a distribution check, there will be a 20% withholding, and
the participant has 60 days to reinvest it in an IRA to qualify as a tax-free rollover. The full
amount of $10,000 must be reinvested, or the withheld amount of 20% will be considered a
taxable distribution.
If two securities have a correlation coefficient of 0, the securities prices would correct answers
Be moving independent from each other.
If the correlation coefficient is 0, then the two securities would have no correlation to each other
as far as their price movement.
Which of the following are characteristics of the interbank system? I. Decentralized; II. Not
regulated; III. Responds to national economic policies; IV. Accommodates retail investors
correct answers I and II
The interbank market is not regulated, nor is it centralized. Unlike the Federal Reserve Board, it
does NOT respond to U.S. economic conditions and policies; it is a market for large banks and
multinational companies, not retail investors.
, Which of the following are lagging indicators? I. Unemployment rate II. Weekly initial
unemployment claims III. Duration of unemployment IV. Nonfarm payrolls correct answers I
and III
The weekly unemployment claims number indicates where employment is moving, and is thus a
leading indicator. Nonfarm payrolls is a coincident indicator.
If an agent solicits or sells an unregistered security, he may avoid civil liabilities by correct
answers Making an offer of rescission.
The offer or sale of an unregistered security is a violation of the Act and the purchaser has a right
of rescission. The agent cannot avoid the liabilities by obtaining any written waivers or
documents from the customer.
When is an investment adviser representative's registration effective? correct answers Only
during employment with an adviser
The representative's registration is effective only while he or she is employed by an investment
adviser. When an investment adviser representative begins or terminates an association with an
investment adviser, the investment adviser must promptly notify the administrator. This differs
from the requirements for a broker/dealer and agent whereby both are required to notify the
administrator.
A bond that sells above par is known as a premium bond. Which of the following statements are
true? correct answers Nominal yield is the highest yield.
The nominal yield will always be the highest yield on a premium bond. The nominal yield is the
same as the coupon rate.
Which of the following statement is NOT true concerning the De Minimis rule and its
application to agents? correct answers The agent may transact business for up to 90 days in a
state in which his registration is still pending.
The agent must be eligible to register in the state; the agent's broker/dealer must be registered in
the state; the agent must be registered with FINRA, and must already be registered in at least one
other state. If an agent's application is pending in that state, the agent can effect transactions for
up to 30 days for a client who has moved to that state. An agent can conduct business with a
current client who is temporarily in the state.
XYZ Industries has outstanding 9% debentures convertible at $25. The trust indenture for the
debentures contains an "anti-dilution" clause. If the company distributes a 10% stock dividend on
the common stock, an investor who owns 10 XYZ Industries debentures would receive which of
the following? correct answers A notice that the conversion price of his bonds has been reduced
to $22.73
