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Wiley Series 66 Exam Review 2015 + Test Bank: The Uniform Combined State Law Examination

Wiley Series 66 Exam Review 2015 + Test Bank: The Uniform Combined State Law Examination

The Securities Institute of America, Inc.

ISBN: 978-1-118-85714-4

Oct 2014

300 pages

Select type: Paperback

$100.00

Product not available for purchase

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 2015 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 2015 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 6

Pension Consultants 6

Form ADV 7

Investment Adviser Representative 8

Solicitor 8

Institutional Investor 8

Accredited Investor 9

Qualified Purchaser 9

Private Investment Company 9

Offer/Offer to Sell/Offer to Buy 9

Sale/Sell 10

Guarantee/Guaranteed 10

Contumacy 10

Federally Covered Exemption 10

Option Contracts 11

Call Options 11

Put Options 11

Futures and Forwards 12

Secondary Market Orders 12

Market Orders 13

Buy Limit Orders 13

Sell Limit Orders 13

Stop Orders/Stop Loss Orders 14

Buy Stop Orders 14

Sell Stop Orders 14

Pretest 15

CHAPTER 2

SECURITIES INDUSTRY RULES AND REGULATIONS 21

The Securities Act of 1933 21

The Securities Exchange Act of 1934 23

Public Utilities Holding Company Act of 1935 25

Financial Industry Regulatory Authority (FINRA) 25

The Trust Indenture Act of 1939 26

Investment Advisers Act of 1940 26

Investment Company Act of 1940 26

Retail Communications/Communications with the Public 27

FINRA Rule 2210 Communications with the Public 28

Blind Recruiting Ads 30

Generic Advertising 30

Tombstone Ads 31

Testimonials 31

Free Services 32

Misleading Communications 32

Securities Investor Protection Corporation Act of 1970 (SIPC) 32

The Securities Acts Amendments of 1975 34

The Insider Trading and Securities Fraud Enforcement Act of 1988 34

Firewall 35

The Telephone Consumer Protection Act of 1991 35

National Securities Market Improvement Act of 1996 36

The Uniform Securities Act 36

Pretest 39

CHAPTER 3

ECONOMIC FUNDAMENTALS 43

Gross Domestic Product 43

Recession 45

Depression 45

Economic Indicators 45

Economic Policy 47

Tools of the Federal Reserve Board 47

Reserve Requirement 47

Changing the Discount Rate 48

Federal Open Market Committee 48

Money Supply 49

Disintermediation 49

Moral Suasion 50

Fiscal Policy 50

International Monetary Considerations 52

Pretest 53

CHAPTER 4

CUSTOMER RECOMMENDATIONS, PROFESSIONAL CONDUCT, AND TAXATION 57

Professional Conduct by Investment Advisers 58

The Uniform Prudent Investors Act of 1994 58

Fair Dealings with Clients 59

Periodic Payment Plans 63

Disclosure of Client Information 64

Borrowing and Lending Money 64

Developing the Client Profile 64

Investment Objectives 66

Risk vs. Reward 68

Alpha 71

Beta 71

Fundamental Analysis 77

Capitalization 80

Tax Structure 81

Investment Taxation 82

Calculating Gains and Losses 82

Cost Base of Multiple Purchases 83

Deducting Capital Losses 84

Wash Sales 84

Taxation of Interest Income 84

Inherited and Gifted Securities 85

Donating Securities to Charity 85

Trusts 85

Gift Taxes 86

Estate Taxes 86

Withholding Tax 87

Corporate Dividend Exclusion 87

Alternative Minimum Tax (AMT) 87

Taxes on Foreign Securities 88

Pretest 89

CHAPTER 5

VARIABLE ANNUITIES, RETIREMENT PLANS, AND LIFE INSURANCE 93

Annuities 93

Equity-Indexed Annuities 96

Annuity Purchase Options 97

Accumulation Units 97

Annuity Units 98

Annuity Payout Options 98

Factors Affecting the Size of the Annuity Payment 99

The Assumed Interest Rate (AIR) 100

Taxation 100

Sales Charges 101

Variable Annuity vs. Mutual Fund 101

Retirement Plans 101

Individual Plans 102

Individual Retirement Accounts (IRAS) 102

529 Plans 105

Local Government Investment Pools (LGIPs) 105

IRA Contributions 106

IRA Accounts 106

IRA Investments 106

It Is Unwise to Put a Municipal Bond in an IRA 107

Rollover vs. Transfer 107

Keogh Plans (HR-10) 108

Contributions 108

Tax-Sheltered Annuities/Tax-Deferred Account 109

Contributions 110

Tax Treatment of Distributions 111

Corporate Plans 111

Non-Qualified Corporate Retirement Plans 111

Payroll Deductions 111

Deferred Compensation Plans 112

Qualified Plans 112

Types of Plans 112

Rolling Over a Pension Plan 114

Employee Retirement Income Security Act of 1974 (ERISA) 114

ERISA 404C Safe Harbor 116

Life Insurance 117

Premiums and Death Benefits 118

Assumed Interest Rate 120

Variable Policy Features 120

Sales Charges 122

Life Settlements 122

Pretest 125

CHAPTER 6

REGISTRATION OF BROKER DEALERS, INVESTMENT ADVISERS, AND AGENTS 129

Registration of Broker Dealers 129

Financial Requirements 130

Agent Registration 130

Registering Agents 132

Changes in an Agent’s Employment 133

Mergers and Acquisitions of Firms 133

Renewing Registrations 133

Canadian Firms and Agents 133

Investment Adviser State Registration 134

The National Securities Market Improvement Act of 1996 (The Coordination Act) 134

Investment Adviser Representative 135

State Investment Adviser Registration 136

Capital Requirements 136

Exams 137

Advertising and Sales Literature 137

Brochure Delivery 138

The Role of the Investment Adviser 139

Additional Compensation for an Investment Adviser 139

Agency Cross Transactions 139

Disclosures by an Investment Adviser 140

Investment Adviser Contracts 141

Additional Roles of Investment Advisers 142

Private Investment Companies/Hedge Funds 142

Fulcrum Fees 142

Wrap Accounts 143

Soft Dollars 143

Pretest 145

CHAPTER 7

SECURITIES REGISTRATION, EXEMPT SECURITIES, AND EXEMPT TRANSACTIONS 151

Exempt Securities 151

Securities Registration 152

Exempt Securities/Federally Covered Exemption 155

Exempt Transactions 156

Pretest 161

CHAPTER 8

STATE SECURITIES ADMINISTRATORS AND THE UNIFORM SECURITIES ACT 167

Actions by the State Securities Administrator 167

Actions Against an Issuer of Securities 169

Rule Changes 169

Investigations 171

Civil and Criminal Penalties 171

Jurisdiction of the State Securities Administrator 172

Administrator’s Jurisdiction over Securities Transactions 172

Right of Rescission 174

Statute of Limitations 175

Pretest 177

ANSWER KEYS 183

GLOSSARY OF EXAM TERMS 193

INDEX 259