Author: Asay

January Study Question of the Month

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card. Continue reading

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.

Question

Relevant to the Series 7.

 

 

 

 

 

Cassie gives her nephew Frank 10 shares of Hathshire Berkaway as a college graduation present. Cassie purchased the shares five years ago at $1,000, and their fair market value is $1,500 at the time of the gift. Frank holds the shares for one year, then sells them at $2,000. What is Frank’s cost basis and holding period?
 
A. $10,000; one year
B. $10,000; six years
C. $15,000; one year
D. $15,000; six years
 
Answer: B. When someone gives securities as a gift to another individual, the recipient’s cost basis is the lower of (1) the giver’s cost basis or (2) the fair market value at the time of the gift. So Frank’s cost basis is Cassie’s purchase price of $10,000 ($1,000 x 10 shares). The giver’s holding period will correspond to cost basis. So Frank’s holding period starts from the date of Cassie’s purchase, six years before Frank sells the shares.

Solomon Exam Prep Updates Cookie Policy

Cookies are small pieces of dough that have been baked in an oven and then cooled and served as a desert or snack. Continue reading

Cookies are small pieces of dough that have been baked in an oven and then cooled and served as a dessert or snack.

Solomon Exam Prep believes that cookies can be a positive part of any day, particularly as a reward when studying for a securities licensing exam like the Series 7 or the Series 65.

Solomon Exam Prep is committed to protecting the privacy of its cookie-eating customers and does not track or monitor its customers’ consumption or use of cookies.

Solomon Exam Prep does not judge the relative merits of which cookies are better, although, Jeremy Solomon, president of Solomon Exam Prep says that he prefers home-made cookies over store-bought.

Solomon Exam Prep may share cookies with others, usually family, friends and co-workers, but depending on the situation, sometimes with strangers. Such shared cookies are always freely given, there is no expectation by Solomon Exam Prep that the recipient will reciprocate or owe Solomon Exam Prep anything. Of course, a “thank you” is always appreciated.

Solomon Exam Prep has helped thousands of cookie- and non-cookie-eating customers pass securities licensing exams including the Series 3, 6, 7, 24, 26, 27, 28, 50, 51, 52, 53, 62, 63, 65, 66, 79, 82, 99 and SIE exams.

The Series 54 Exam Is Coming …

The Municipal Securities Rulemaking Board (MSRB) has received approval from the Securities and Exchange Commission (SEC) to amend MSRB Rule G-3, on professional qualification requirements, to establish a qualification exam for municipal advisor professionals who act in a principal capacity at their firms. Continue reading

The Municipal Securities Rulemaking Board (MSRB) has received approval from the Securities and Exchange Commission (SEC) to amend MSRB Rule G-3, on professional qualification requirements, to establish a qualification exam for municipal advisor professionals who act in a principal capacity at their firms. The MSRB says it will “pilot” the Municipal Advisor Principal Qualification Examination (Series 54) from February 2019 through June 2019. Any municipal advisor principal may take the pilot Series 54 examination during the pilot period and if that individual achieves a passing score or better, the individual will be considered qualified as a municipal advisor principal when the MSRB permanently establishes the Series 54 in the fall of 2019. Go to SolomonExamPrep.Com to be notified when Solomon Exam Prep’s Series 54 Exam Study materials are launched.

December Study Question of the Month

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card. Continue reading

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.

Question

Relevant to the SIE.

Henry buys shares of ABC in an initial public offering.  Two months later he sells the shares to James.  Two months later James sells the shares to Carrie. Which of the following is true?
 
A. Henry’s sale to James is a primary market transaction, while James’s sale to Carrie is a secondary market transaction
B. Both Henry’s sale to James and James’s sale to Carrie are primary market transactions
C. Henry’s sale to James is a primary market transaction, while James’s sale to Carrie is a follow-on offering

D. Both Henry’s sale to James and James’s sale to Carrie are secondary market transactions

Answer: D. When an investor buys shares in an IPO from the issuer, the purchase is a primary market transaction.  After that, whenever sales of the security are traded from investor to investor, and not from the issuer to an investor, the sales take place in the secondary market.  Thus, while Henry’s initial purchase is a primary market transaction, his sale to James and then James’ sale to Carrie are both secondary market transactions.

Height of Federal Reserve Chairperson an Economic Indicator?

Anyone studying for the FINRA Securities Industry Essentials (SIE) exam or the Series 65 Investment Adviser exam must learn about economic indicators such as interest rates (leading), inflation (lagging) and GDP (coincident). Continue reading

Anyone studying for the FINRA Securities Industry Essentials (SIE) exam or the Series 65 Investment Adviser exam must learn about economic indicators such as interest rates (leading), inflation (lagging) and GDP (coincident). Observers have noted that interest rates under tall Federal Reserve chairpersons, such as Paul Volcker (6’7”), have been higher than under short chairpersons, such as Janet Yellen (5’3”). According to the Washington Post, Yellen lost her job to the taller Jerome Powell because President Trump did not think the diminutive Yellen was tall enough for the job. Solomon Exam Prep has helped thousands of people of all heights pass securities licensing exams including the Series 3, 6, 7, 24, 26, 27, 28, 50, 51, 52, 53, 63, 65, 66, 79, 82, 99 and SIE exams. finra , securities, SIEexam, Series65,Series7, interestrates

November Study Question of the Month

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card. Continue reading

Submit your answer to info@solomonexamprep.com to be entered to win a $10 Starbucks gift card.

Question

Relevant to the Series 50, Series 51, Series 52, and Series 53.

 

 

 

 

 

A municipal finance professional decides to donate his time to a municipal official’s campaign. He donates his time outside of work hours. Which of the following is true?
 
A. This would not be considered a contribution under G-37, and would not need to be disclosed and would not trigger the ban
B. This is considered a contribution that will need to be reported and may trigger the ban
C. This will need to be disclosed by the dealer, but it would not trigger the ban

D. This is considered a contribution that may trigger the ban, but will not need to be reported

Answer: A. An employee of a dealer generally can donate his or her time to a municipal official’s campaign without it being considered a contribution to the official, as long as the employee is volunteering his or her time during non-work hours, or is using previously accrued vacation time or the dealer is not otherwise paying the employee’s salary (e.g., an unpaid leave of absence). Because the volunteering takes place outside of work hours, it would not be considered a contribution and will not trigger the ban or need to be disclosed.