Series 7 Exam; Series 7 Study Guide Lessons and Information

Series 7 Top-Off Exam Lesson 15.1 Risks of Defined Benefit Plans

This is Series 7 Top-Off Exam on the Risks of Defined Benefit Plans

In this Lesson we outline the many risks of Defined Benefit Plans.

These risks include

Market Risk

Interest Rate Risks

Political Risks

Management Risk

Actuary Risks

Investment Risks

and more

Series 7 Top-Off Exam Quiz Lesson 6 Securities Act of 1933

The Series 7 Top-Off Study Guide Audio Lessons for the New Series 7 Exam is the most comprehensive set of audio lessons which is available for the preparation to take the New Series 7 Top off Examination the course consists of 74 lessons which amounts to 32 hours and 27 min. in total length. Audio lessons are a supplement and not a substitute for the book learning that you should also be doing. Audio lessons simply allow you to learn comprehend and reinforce what you should also be learning through normal studying methods such as attending classes, reading books, and taking practice quizzes.

 

The full table of contents for the Series 7 Top-Off Study Guide is located here

The New Series 7 Top- Off Study Guide Audio Lessons is 74 lessons and a Total Length 32 hours 27 Min

 

The full table of contents for the Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam is located here

Effective October 1, 2018 Financial Industry Regulatory Authority (FINRA) changed the licensing of those that wish to work in the financial services industry. There is now a required prerequisite for most of the Licensing tests and this is the Securities Industry Essentials Exam

Securities Industry Essentials Exam is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.

Unlike the licensing exams such as the Series 4, 6, 7, 9, 10… which require the candidate to be employed by a member firm, Securities Industry Essentials Exam is open to anyone over the age of 18 including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.

Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.

Essentials exam results are valid for four years.

Check out our podcast for the SIE Exam

Here is a link to our other study products

Series 7 Top-Off Exam Quiz Lesson 6 Securities Act of 1933

This is Series 7 Top-Off Exam Quiz Lesson 6 Securities Act of 1933

1. Which of the following is true about the Securities Exchange Act of 1934?

(Select all that apply.)

A. It applies to exempt securities.

B. It determines what fair trading practices are.

C. It regulates the secondary trading of securities.

D. It was established by the Securities and Exchange Commission.

2. Which of the following is contained in a 10-K? (Select all that apply.)

A. balance sheet

B. cash flow statement

C. compensation of officers

D. income statement

3. The 10-Q is an audited financial report submitted quarterly to the Securities and Exchange Commission.

A. True

B. False

4. A ___ is filed if the company changes its name or there’s a 5% or greater change in the number of shares outstanding.

A. 10-C

B. 13-G

C. 15-B

D. 8-K

5. Which of the following is required from the broker-dealers by the Securities Exchange Act of 1934?

(Select all that apply.)

A. buy back stocks for customers that reneged on their transactions

B. electronically deliver clients’ confirmation and statements

C. maintain a minimum net capital

D. send customers a copy of their income statement

6. Under ___, margins are regulated from brokers to their customers.

A. Regulation D

B. Regulation M

C. Regulation T

D. Regulation U

7. Broker-dealers are allowed to disclose to customers the routing of the customers’ orders.

A. True

B. False

8. It is a totally anonymous matching of buy and sell orders.

A. alternative trading system

B. electronic exchange

C. electronics communication network

D. physical exchange

9. Which of the following are/were physical exchanges?

(Select all that apply.)

A. Cincinnati Stock Exchange

B. New York Stock Exchange (NYSE)

C. Pacific Stock Exchange

D. Philadelphia Stock Exchange

10. Which of the following is true about penny stocks?

(Select all that apply.)

A. They are sold on the over-the-counter bulletin board.

B. They are unsolicited orders.

C. They are traded on the NASDAQ and other listed exchanges.

D. They sell at less than $5.

11. The broker is not required to assess a penny stock buyer’s financial situation if the buyer is a/an ___.

(Select all that apply.)

A. accredited investor

B. client whose order is unsolicited

C. insider

D. interstate citizen

12. It is trading on nonpublic material information on the company.

A. front running

B. insider trading

C. pegging

D. wash trade

13. This is the catchall rule that prohibits anything fraud even if it is not specifically prohibited in the Securities Exchange Act of 1934.

A. Rule 10b-5

B. Rule 127-c

C. Rule 144A

D. Rule 145

14. For unlawful practices under the Securities Exchange Act of 1934, suits can be brought within ___ of discovery.

A. six months

B. one year

C. two years

D. three years

15. If a control person owns a position of a stock and he wants to lock in his profit or loss, he can ___.

A. dribble out

B. peg the stock

C. short against the box

D. short sell the stock

16. Anybody that has nonpublic material information on the company is considered an insider.

A. True

B. False

17. In the United Sates, they are exempted from the rules that prohibit insider trading.

(Select all that apply.)

A. congressmen

B.

Series 7 Top-Off Exam Quiz Lesson 47 Annuities

This is Series 7 Top-Off Exam Quiz Lesson 47 Annuities

1. It is a contract wherein the buyer make payments and after some time, the insurance company will make a series of payments back to the buyer.

A. annuity contract

B. bond contract

C. option contract

D. variable contract

2. Which of the following is NOT true regarding the selling of an annuity contract?

A. The seller of an annuity contract has to have an insurance license.

B. The insurance license for selling an annuity contract is regulated at the national level.

C. The insurance license for selling an annuity contract is issued by the state.

D. All of the above are true regarding the selling of an annuity contract.

3. The earnings on the accumulated funds in an annuity grow tax-deferred.

A. True

B. False

4. Annuity contracts are sold by investment advisors.

A. True

B. False

5. Insurance company accounting is quite different from generally accepted accounting principles.

A. True

B. False

6. Which is the correct formula for a combined ratio?

A. (earned premiums – insured losses) ÷ expense of the company

B. (insured losses + expense of the company) ÷ earned premiums

C. earned premiums ÷ (insured losses + expense of the company)

D. expense of the company ÷ (earned premiums – insured losses)

7. An insurance company had an insurance losses of $10 million, expenses of $3.5 million, and an earned premium of $9 million. What is the combined ratio?

A. 29%

B. 67%

C. 150%

D. 350%

8. An insurance company is paying out more money than it earns when the combined ratio is ___.

A. a negative percentage

B. above 100%

C. below 100%

D. equal to 100%

9. Which of the following is true about a long tail business?

A. It happens when insurance premiums are collected over the years while it takes a long time before a claim arrives (e.g. medical malpractice insurance).

B. It happens when the combined ratio is greater than 100%.

C. It happens when the interest rates are low causing a higher investment income.

D. It happens when there is an investment profit that is not calculated in the combined ratio.

10. In a variable annuity, the insurance company guarantees the annuitant a specific rate of return on his investment over a certain period of time.

A. True

B. False

11. In a fixed annuity, if interest rates are low, the offer of the insurance company would be ___.

A. high

B. low

C. fixed regardless of the interest rates

D. The offer of the insurance company may vary but is independent from the interest rate.

12. In calculating how much a life annuity is going to pay an annuitant, an insurance company takes into consideration the annuitant’s ___.

(Select all that apply.)

A. age

B. financial status

C. gender

D. health

13. It is an annuity wherein a beneficiary could still receive the monthly payments even if the owner of the annuity has already died.

A. joint and last survivor annuity

B. life annuity

C. life annuity with a period certain

D. unit refund life annuity

14. Which of the following is true about joint and last survivor annuity? (Select all that apply.)

A. It would pay the annuitant until he dies.

B. It would pay the annuitant’s spouse until the spouse dies.

C. It would pay the annuitant’s children until the last child dies.

D. It would pay the annuitant’s estate until a certain period of time.

15. In a unit refund life annuity, if the annuitant and the beneficiary dies before...

Series 7 Top-Off Exam Quiz Lesson 46 Unit Investment Trusts

This is Series 7 Top-Off Exam Quiz Lesson 46 Unit Investment Trusts

1. It is a specific portfolio of bonds that is self-liquidating.

A. unit investment trust

B. open-end mutual fund

C. closed-end mutual fund

D. hedge fund

2. The unit investment trust is regulated by the Investment Company Act of 1940.

A. True

B. False

3. What is the implication of a unit investment trust being self-liquidating?

A. The investor will get back over time the principal plus interest.

B. The net asset value of the trust is independent from the market value.

C. The trust is free from ownership risk.

D. There is a constant interest rate until the trust’s maturity.

4. Which of the following is true about a unit investment trust which invests in fixed income investments?

(Select all that apply.)

A. Buying the trust is buying shares of beneficial interest.

B. Holding the unit investment trust to its maturity returns the investment (assuming no defaults).

C. If the trust is sold prior to maturity, it has more interest rate risk than other fixed income portfolio.

D. Unlike a bond, this trust is a fixed portfolio.

5. A fixed income unit investment trust differs from an open-end mutual fund in such a way that ___.

(Select all that apply.)

A. A fixed income unit investment trust is self-liquidating; an open-end mutual fund is not.

B. An open-end mutual fund has breakpoints; a fixed income unit investment trust has none.

C. An open-end mutual fund is perpetual; a fixed income unit investment trust is not.

D. An open-end mutual fund pays a little, if any, management fee; a fixed income unit investment trust pays very high management fees.

6. A unit investment trust does not expand nor contract in size once issued.

A. True

B. False

7. Unit investment trusts can invest in ___.

(Select all that apply.)

A. closed-end funds

B. corporate bonds

C. government securities

D. equities

8. The shares of beneficial interest in a unit investment trust can be redeemed prior to maturity.

A. True

B. False

9. A unit investment trust that invests in a master limited partnership will receive a ___ at the end of the year.

A. 1099-DIV

B. 1601F

C. CF-213

D. K-1

10. A trust invests in a closed-end fund. The fund’s net asset value is $28.74. It currently trades at $29.03. What is the percentage of the premium?

A. 0.01%

B. 0.09%

C. 0.99%

D. 1%

11. It is a unit investment trust used to fund variable annuities.

A. fixed income unit investment trust

B. municipal bond unit investment trust

C. participating unit investment trust

D. stock unit investment trust

12. In a fixed income unit investment trust, if any of the bonds in the fund default, the principal that the investor would be getting back would ___.

A. increase

B. decrease

C. remain the same

D. be equal to the market value

13. A unit investment trust that invests in US government bonds that is held in maturity is NOT subject to ___.

A. credit worthiness risk

B. currency risk

C. interest rate risk

D. principal risk

14. What is the advantage of buying a unit investment trust that strictly invests in a master limited partnership (compared with a unit investment trust that invests in closed-end funds that invest in the same master limited partnership)?

(Select all that apply.)

A. It avoids paying several management fees.

B. It can generate more income because the management fees are ...

Series 7 Top-Off Exam Quiz Lesson 45 Mutual Funds pt 3

This is the Series 7 Top-Off Exam Quiz Lesson 45 Mutual Funds pt 3

Questions covered include

1. Which of the following is true about hedge funds?

(Select all that apply.)

A. They are not allowed to cut off withdrawals by their investors.

B. They are open to any kind of investor.

C. They charge a management fee.

D. They have a cap on the amount that is available to be withdrawn at any given time.

2. What is the minimum capital for a hedge fund?

A. $100,000

B. $200,000

C. $500,000

D. $1,000,000

3. Which of the following is qualified as an accredited investor according to the Securities Act of 1933?

(Select all that apply.)

A. a bank

B. a charitable organization with a total asset of $5 million

C. a trust with a total asset of $10 million

D. an employee benefit plan that has a total asset of $3 million

4. A business is qualified to be an accredited investor if all its equity owners are accredited investors.

A. True

B. False

5. A natural person can be an accredited investor if that person ___.

(Select all that apply.)

A. has an income exceeding $200,000 in each of the two most recent years and a reasonable expectation of the same income level in the current year

B. has individual net worth that exceeds $1 million including the value of the primary residence of such person

C. has a joint income with the spouse exceeding $200,000 in each of the two most recent years and a reasonable expectation of the same income in the current year

D. has a joint net worth with the person’s spouse that exceeds $1 million excluding the value of the primary residence of such person

6. The performance of a hedge fund is always better than the market.

A. True

B. False

7. Which of the following strategies does a hedge fund employ?

(Select all that apply.)

A. global macro hedge fund strategy

B. relative value arbitrage

C. high-frequency trading

D. currency strategies

8. A mutual fund’s annual and semiannual report has an income statement similar to a regular corporate income statement.

A. True

B. False

9. Which of the following can be found in a mutual fund’s income statement?

(Select all that apply.)

A. dividends

B. capital gains

C. expenses

D. net income

10. Which of the following is true about expense ratio?

(Select all that apply.)

A. It applies to closed-end funds but not to open-end funds.

B. It gives an overall look at how much it costs to pay the management to buy the stocks instead of buying it yourself without paying any management fee.

C. It is the total net assets divided by the total expenses.

D. It shows the efficiency of the fund.

11. If you’re buying a fund at a very big discount but has a very high expense ratio, the discount you’re buying those stocks may disappear.

A. True

B. False

12. An investment company should distribute at least ___ of its income in order to be regulated under the Investment Company Act of 1940.

A. 80%

B. 85%

C. 90%

D. 95%

13. If an investment company is not regulated under the Investment Company Act of 1940, ___.

A. it becomes taxed as a regular corporation

B. it has to pay an additional tax equivalent to 2% of the total capital gains

C. it will require double management fees

D. its net pass is not taxed

14. Investment companies can pass through capital gains ___.

A. monthly

B. quarterly

C. semiannually

D. at the end of the year

15.

Series 7 Top-Off Exam Quiz Lesson 44 Mutual Funds pt 2

The Investment Company Act of 1940 Quiz, This is Series 7 Top-Off Exam Quiz Lesson 44 Mutual Funds pt 2

Investment Company Act of 1940 Quiz

The Series 7 Top-Off Study Guide Audio Lessons for the New Series 7 Exam is the most comprehensive set of audio lessons which is available for the preparation to take the New Series 7 Top off Examination the course consists of 74 lessons which amounts to 32 hours and 27 min. in total length. Audio lessons are a supplement and not a substitute for the book learning that you should also be doing. Audio lessons simply allow you to learn comprehend and reinforce what you should also be learning through normal studying methods such as attending classes, reading books, and taking practice quizzes.

 

The full table of contents for the Series 7 Top-Off Study Guide is located here

The New Series 7 Top- Off Study Guide Audio Lessons is 74 lessons and a Total Length 32 hours 27 Min

 

The full table of contents for the Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam is located here

Effective October 1, 2018 Financial Industry Regulatory Authority (FINRA) changed the licensing of those that wish to work in the financial services industry. There is now a required prerequisite for most of the Licensing tests and this is the Securities Industry Essentials Exam

Securities Industry Essentials Exam is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.

Unlike the licensing exams such as the Series 4, 6, 7, 9, 10… which require the candidate to be employed by a member firm, Securities Industry Essentials Exam is open to anyone over the age of 18 including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.

Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.

Essentials exam results are valid for four years.

Check out our podcast for the SIE Exam

Here is a link to our other study products

Series 7 Top-Off Exam Quiz Lesson 43 Mutual Funds pt 1

The Investment Company Act of 1940 Quiz, This is Series 7 Top-Off Exam Quiz Lesson 43 Mutual Funds pt 1

Investment Company Act of 1940 Quiz

The Series 7 Top-Off Study Guide Audio Lessons for the New Series 7 Exam is the most comprehensive set of audio lessons which is available for the preparation to take the New Series 7 Top off Examination the course consists of 74 lessons which amounts to 32 hours and 27 min. in total length. Audio lessons are a supplement and not a substitute for the book learning that you should also be doing. Audio lessons simply allow you to learn comprehend and reinforce what you should also be learning through normal studying methods such as attending classes, reading books, and taking practice quizzes.

 

The full table of contents for the Series 7 Top-Off Study Guide is located here

The New Series 7 Top- Off Study Guide Audio Lessons is 74 lessons and a Total Length 32 hours 27 Min

 

The full table of contents for the Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam is located here

Effective October 1, 2018 Financial Industry Regulatory Authority (FINRA) changed the licensing of those that wish to work in the financial services industry. There is now a required prerequisite for most of the Licensing tests and this is the Securities Industry Essentials Exam

Securities Industry Essentials Exam is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.

Unlike the licensing exams such as the Series 4, 6, 7, 9, 10… which require the candidate to be employed by a member firm, Securities Industry Essentials Exam is open to anyone over the age of 18 including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.

Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.

Essentials exam results are valid for four years.

Check out our podcast for the SIE Exam

Here is a link to our other study products

Investment Company Act of 1940 Quiz

The Investment Company Act of 1940 Quiz, This is a Quiz from Series 7 Exam Quiz Lesson 42

Investment Company Act of 1940 Quiz

The Series 7 Top-Off Study Guide Audio Lessons for the New Series 7 Exam is the most comprehensive set of audio lessons which is available for the preparation to take the New Series 7 Top off Examination the course consists of 74 lessons which amounts to 32 hours and 27 min. in total length. Audio lessons are a supplement and not a substitute for the book learning that you should also be doing. Audio lessons simply allow you to learn comprehend and reinforce what you should also be learning through normal studying methods such as attending classes, reading books, and taking practice quizzes.

 

The full table of contents for the Series 7 Top-Off Study Guide is located here

The New Series 7 Top- Off Study Guide Audio Lessons is 74 lessons and a Total Length 32 hours 27 Min

 

The full table of contents for the Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam is located here

Effective October 1, 2018 Financial Industry Regulatory Authority (FINRA) changed the licensing of those that wish to work in the financial services industry. There is now a required prerequisite for most of the Licensing tests and this is the Securities Industry Essentials Exam

Securities Industry Essentials Exam is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.

Unlike the licensing exams such as the Series 4, 6, 7, 9, 10… which require the candidate to be employed by a member firm, Securities Industry Essentials Exam is open to anyone over the age of 18 including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.

Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.

Essentials exam results are valid for four years.

Check out our podcast for the SIE Exam

Here is a link to our other study products

Series 7 Top-Off Exam Quiz Lesson 55 Options pt 6

This is a Quiz from Series 7 Exam Quiz Lesson 55 Options Pt 6  spreads

The Series 7 Top-Off Study Guide Audio Lessons for the New Series 7 Exam is the most comprehensive set of audio lessons which is available for the preparation to take the New Series 7 Top off Examination the course consists of 74 lessons which amounts to 32 hours and 27 min. in total length. Audio lessons are a supplement and not a substitute for the book learning that you should also be doing. Audio lessons simply allow you to learn comprehend and reinforce what you should also be learning through normal studying methods such as attending classes, reading books, and taking practice quizzes.

 

The full table of contents for the Series 7 Top-Off Study Guide is located here

The New Series 7 Top- Off Study Guide Audio Lessons is 74 lessons and a Total Length 32 hours 27 Min

 

The full table of contents for the Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam is located here

Effective October 1, 2018 Financial Industry Regulatory Authority (FINRA) changed the licensing of those that wish to work in the financial services industry. There is now a required prerequisite for most of the Licensing tests and this is the Securities Industry Essentials Exam

Securities Industry Essentials Exam is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.

Unlike the licensing exams such as the Series 4, 6, 7, 9, 10… which require the candidate to be employed by a member firm, Securities Industry Essentials Exam is open to anyone over the age of 18 including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.

Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.

Essentials exam results are valid for four years.

Check out our podcast for the SIE Exam

Here is a link to our other study products

Series 7 Top-Off Exam Quiz Lesson 54 Options pt 5

This is a Quiz from Series 7 Exam Quiz Lesson 54 Options Pt 5  spreads

The Series 7 Top-Off Study Guide Audio Lessons for the New Series 7 Exam is the most comprehensive set of audio lessons which is available for the preparation to take the New Series 7 Top off Examination the course consists of 74 lessons which amounts to 32 hours and 27 min. in total length. Audio lessons are a supplement and not a substitute for the book learning that you should also be doing. Audio lessons simply allow you to learn comprehend and reinforce what you should also be learning through normal studying methods such as attending classes, reading books, and taking practice quizzes.

 

The full table of contents for the Series 7 Top-Off Study Guide is located here

The New Series 7 Top- Off Study Guide Audio Lessons is 74 lessons and a Total Length 32 hours 27 Min

 

The full table of contents for the Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam is located here

Effective October 1, 2018 Financial Industry Regulatory Authority (FINRA) changed the licensing of those that wish to work in the financial services industry. There is now a required prerequisite for most of the Licensing tests and this is the Securities Industry Essentials Exam

Securities Industry Essentials Exam is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.

Unlike the licensing exams such as the Series 4, 6, 7, 9, 10… which require the candidate to be employed by a member firm, Securities Industry Essentials Exam is open to anyone over the age of 18 including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.

Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.

Essentials exam results are valid for four years.

Check out our podcast for the SIE Exam

Here is a link to our other study products