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Series 66, STC FINAL 3 exam questions and answers.
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Series 66, STC FINAL 3 exam questions and answers.
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Series 66, STC FINAL 3 examquestions and answers
When recommending a hedge fund as an investment vehicle, an
adviser would disclose all the following points to her client, EXCEPT:
AThe performance fees
BThe lack of regulation
CAll the securities owned by the Hedge Fund
DThe lack of liquidity - answer C
Hedge funds make few public disclosures, so it can be difficult for an
investor to assess the diversification of the portfolio or its trading
strategies. Because hedge funds are exempt from registration with
the SEC, there is a lack of regulatory oversight. Unlike mutual funds,
their shares are not publicly traded and they often have relatively
high performance fees. (62220)
One of the main differences between futures contracts and forward
contracts is that:
AForward contracts do not involve commodities
BAn investor may not be short a futures contract
CForward contracts may not be offset without permission
DFutures contracts are always used to speculate - answer One of the
main differences between futures contracts and forward contracts is
that future contracts may be offset (bought or sold). Indeed, most
buyers and sellers of future contracts never actually take delivery of
the underlying commodity or financial instrument. In a forward
contract, however, both parties involved in the contract must agree
before the contract may be bought or sold. (63007)
,you cant sell a forward contract w/o permission, and forward
contracts are not standardized. You also need to take / make
delivery of the actual good with a forward.
Both variable life insurance and variable annuities have all of the
following features, EXCEPT:
ANamed beneficiaries
BGuaranteed cash values
CLoan provisions
DDeath benefits - answer B
Variable life insurance and variable annuity products do not provide
guaranteed cash values. When investors buy variable products, they
invest in a separate account and assume market risk. (67631)
A broker-dealer is registered in every state, but its only office is
located in State X. The Administrator in State X sends a notice to
the broker-dealer's compliance department indicating that it is
going to audit the books and records of the firm. Does the
Administrator in State X have the authority to audit the firm?
AYes, because the broker-dealer is registered in State X
BYes, because the Administrator has authority over every broker-
dealer
CNo, broker-dealers may only be audited by the SEC
DNo, because the broker-dealer has no place of business in State X -
answer A
Administrators have jurisdiction or authority over all securities
professionals who are registered in their state or who offer, sell, or
hold themselves out to potential clients in their state. Since the
broker dealer is registered in State X, the Administrator in State X
, has the ability to audit and subpoena its books and records and to
compel testimony. (67651)
For disclosure purposes on Form ADV, a felony (as compared to a
misdemeanor) is defined by all of the following choices, EXCEPT:
AAn offense that's punishable by a fine of at least $500
BA general court martial
CAn offense that's punishable by a fine of at least $1,000
DAn offense that's punishable by a prison sentence of at least one
year - answer A
All the choices are considered felonies, except an offense that's
punishable by a fine of at least $500. A felony is an offense that's
punishable by a prison sentence of at least one year and/or a fine of
at least $1,000. The term also includes a general court martial. A
misdemeanor includes a special court martial or an offense that's
punishable by a prison sentence of less than one year and/or a fine
of less than $1,000. (32474)
Which of the following is TRUE of a Qualified Domestic Relations
Order (QDRO)?
AA QDRO is a court order that provides an alternative payee the
right to receive all or a portion of the benefits that are payable to a
participant under a qualified retirement plan
BA QDRO is a court order that provides an alternative payee the
right to receive all or a portion of the benefits that are payable to a
participant under a non-qualified retirement plan
CA QDRO is a court order that divides all jointly held property in the
event of a divorce
DA QDRO is a court order that requires one person involved in a
divorce to provide for the payment of alimony or child support -
answer A
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