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Wiley FINRA Series 66 Exam Review 2017: The Uniform Combined State Law Examination

Wiley FINRA Series 66 Exam Review 2017: The Uniform Combined State Law Examination

Wiley

ISBN: 978-1-119-37991-1

Mar 2017

324 pages

Out of stock

$100.00

Description

The go-to guide to acing the Series 66 Exam!

Passing the Uniform Combined State Law Examination (Series 66) qualifies an individual to represent both a broker-dealer and an investment adviser. It covers such topics as client investment strategies and ethical business practices. Taken as a corequisite with the Series 7 Exam, candidates must complete the Series 66 Exam in order to register as an agent with a state securities administrator.

Created by the experts at The Securities Institute of America, Inc., Wiley Series 66 Exam Review 2017 arms you with what you need to score high on this tough 100-question test. Designed to help you build and fine-tune your knowledge of all areas covered in the exam and to guarantee that you're prepared mentally and strategically to take the test, it provides:

  • Dozens of examples
  • Assorted practice questions for each subject area covered in the exam
  • Priceless test-taking tips and strategies
  • Helpful hints on how to study for the test, manage stress, and stay focused

Wiley Series 66 Exam Review 2017 is your ticket to passing this difficult test on the first try—with flying colors!

About the Series 66 Exam xiii

About This Book xvii

About the Test Bank xix

About the Securities Institute of America xxi

Chapter 1 Definition of Terms 1

Security 1

Person 3

Broker Dealer 4

Agent 4

Issuer 5

Nonissuer 5

Investment Adviser 5

Pension Consultants 6

Investment Counsel 6

Form ADV 7

Investment Adviser Registration Database (IARD) 8

Investment Adviser Representative 9

Solicitor 9

Access Person 10

Institutional Investor 10

Accredited Investor 11

Qualified Purchaser 11

Private Investment Company 11

Offer/Offer to Sell/Offer to Buy 11

Sale/Sell 12

Guarantee/Guaranteed 12

Contumacy 12

Federally Covered Exemption 12

Escheatment 13

12B-1 Fees 13

Power of Attorney 14

Option Contracts 14

Call Options 15

Put Options 15

Futures and Forwards 15

Secondary Market Orders 15

Market Orders 16

Buy Limit Orders 16

Sell Limit Orders 16

Stop Orders/Stop Loss Orders 17

Buy Stop Orders 17

Sell Stop Orders 18

Pretest 19

Chapter 2 Securities Industry Rules and Regulations 25

The Securities Act of 1933 25

The Securities Exchange Act of 1934 27

Public Utilities Holding Company Act of 1935 29

Financial Industry Regulatory Authority (FINRA) 29

The Trust Indenture Act of 1939 30

Investment Advisers Act of 1940 30

Investment Company Act of 1940 30

Retail Communications/Communications with the Public 31

FINRA Rule 2210 Communications with the Public 32

Blind Recruiting Ads 34

Generic Advertising 34

Tombstone Ads 35

Testimonials 35

Free Services 36

Misleading Communications 36

Securities Investor Protection Corporation Act of 1970 (SIPC) 37

The Securities Acts Amendments of 1975 38

The Insider Trading and Securities Fraud Enforcement Act of 1988 38

Firewall 39

The Telephone Consumer Protection Act of 1991 39

National Securities Market Improvement Act of 1996 40

The Uniform Securities Act 41

The Patriot Act 41

Regulation S-P 43

Identity Theft 44

Pretest 45

Chapter 3 Economic Fundamentals 49

Gross Domestic Product 49

Recession 51

Depression 51

Economic Indicators 51

Schools of Economic Thought 53

Economic Policy 54

Tools of the Federal Reserve Board 54

Interest Rates 54

Reserve Requirement 55

Changing the Discount Rate 56

Federal Open Market Committee 56

Money Supply 57

Disintermediation 58

Moral Suasion 58

Fiscal Policy 58

International Monetary Considerations 60

London Interbank Offered Rate(LIBOR) 60

Yield Curve Analysis 60

Pretest 63

Chapter 4 Customer Recommendations, Professional Conduct, and Taxation 67

Professional Conduct by Investment Advisers 68

The Uniform Prudent Investors Act of 1994 68

Fair Dealings with Clients 69

Periodic Payment Plans 73

Disclosure of Client Information 74

Borrowing and Lending Money 74

Developing the Client Profile 74

Investment Objectives 77

Risk vs. Reward 79

Alpha 81

Beta 81

Predicting Portfolio Income 88

Fundamental Analysis 90

Capitalization 93

Tax Structure 95

Investment Taxation 95

Calculating Gains and Losses 95

Cost Base of Multiple Purchases 96

Deducting Capital Losses 97

Wash Sales 97

Taxation of Interest Income 98

Inherited and Gifted Securities 98

Donating Securities to Charity 98

Trusts 99

Gift Taxes 99

Estate Taxes 100

Withholding Tax 100

Corporate Dividend Exclusion 100

Alternative Minimum Tax (AMT) 101

Taxes on Foreign Securities 101

Pretest 103

Chapter 5 Variable Annuities, Retirement Plans, AND LIFE INSURANCE 107

Annuities 107

Equity-Indexed Annuities 110

Recommending Variable Annuities 111

Annuity Purchase Options 112

Accumulation Units 112

Annuity Units 113

Annuity Payout Options 113

Factors Affecting the Size of the Annuity Payment 114

The Assumed Interest Rate (AIR) 115

Taxation 115

Sales Charges 116

Variable Annuity vs. Mutual Fund 116

Retirement Plans 116

Individual Plans 117

Individual Retirement Accounts (IRAs) 117

529 Plans 120

Local Government Investment Pools (LGIPs) 121

IRA Contributions 122

IRA Accounts 122

IRA Investments 122

It Is Unwise to Put a Municipal Bond in an IRA 123

Rollover vs. Transfer 123

Keogh Plans (HR-10) 124

Contributions 124

Tax-Sheltered Annuities/Tax-Deferred Account 125

Contributions 126

Tax Treatment of Distributions 127

Corporate Plans 127

Non-Qualified Corporate Retirement Plans 127

Payroll Deductions 127

Deferred Compensation Plans 128

Qualified Plans 128

Types of Plans 128

Rolling Over a Pension Plan 130

Employee Retirement Income Security Act of 1974 (ERISA) 130

ERISA 404C Safe Harbor 132

The Department of Labor Fiduciary Rules 133

Life Insurance 133

Premiums and Death Benefits 135

Assumed Interest Rate 136

Variable Policy Features 137

Sales Charges 138

Life Settlements 139

Tax Implications of Life Insurance 139

Health Savings Accounts 140

Pretest 141

Chapter 6 Registration of Broker Dealers, Investment Advisers, and Agents 145

Registration of Broker Dealers 145

Financial Requirements 146

Agent Registration 147

Hiring New Employees 149

Resignation of a Registered Representative 150

Registering Agents 151

Changes in an Agent’s Employment 152

Mergers and Acquisitions of Firms 152

Renewing Registrations 152

Canadian Firms and Agents 152

Investment Adviser State Registration 153

The National Securities Market Improvement Act of 1996 (The Coordination Act) 153

Investment Adviser Representative 154

State Investment Adviser Registration 155

Capital Requirements 155

Exams 156

Advertising and Sales Literature 157

Brochure Delivery 158

The Role of the Investment Adviser 159

Additional Compensation for an Investment Adviser 159

Agency Cross Transactions 159

Disclosures by an Investment Adviser 159

Investment Adviser Contracts 161

Additional Roles of Investment Advisers 162

Private Investment Companies/Hedge Funds 162

Fulcrum Fees 162

Wrap Accounts 163

Soft Dollars 163

Pretest 165

Chapter 7 Securities Registration, Exempt Securities, and Exempt Transactions 171

Exempt Securities 171

Securities Registration 172

Exempt Securities/Federally Covered Exemption 175

Exempt Transactions 176

Pretest 183

Chapter 8 State Securities Administrator: the Uniform Securities Act 189

Actions by the State Securities Administrator 189

Actions Against an Issuer of Securities 191

Rule Changes 192

Investigations 194

Civil and Criminal Penalties 194

Jurisdiction of the State Securities Administrator 195

Administrator’s Jurisdiction over Securities Transactions 195

Radio, Television, and Newspaper Distribution 198

Right of Rescission 198

Statute of Limitations 199

Pretest 201

Answer Keys 207

Glossary of Exam Terms 217

Index 283