This is a short video overview of what you need to know about qualified dividends for securities licensing exams. Continue reading
This is a short video overview of what you need to know about qualified dividends for securities licensing exams.
To order exam prep materials please head to our main website http://solomonexamprep.com or give us a call at 503.601.0212.
For over 10 years Solomon Exam Prep has been devoted to helping students to prepare effectively for various securities and insurance licensing exams. We pride ourselves on our customer service and easy-to-use products that make the studying process as painless as possible. Continue reading
For over 10 years, Solomon Exam Prep has been devoted to helping students effectively prepare for various securities and insurance licensing exams. We pride ourselves on our customer service and easy-to-use products that make the studying process as painless as possible.
Solomon Exam Prep has recently published a brand-new line of materials for the MSRB Series 51, Series 52 and Series 53 exams. We are pleased to report that our early Series 52 and Series 53 students have all passed their exams!
We keep track of our students through BrokerCheck and keep in contact with them via e-mail. “We are excited to announce a 93% pass rate across all of our exams,” said president Jeremy Solomon. We are constantly publishing more materials and updating our current materials, which is how we can maintain such a high pass rate. Our Series 7 boasts a 95.0% first time pass rate, Series 82— 97.4%, Series 55— 96.9%, and Series 63— 93.6% just to name a few.
Are you studying for your FINRA, NASAA, or MSRB exams? Order now and be a part of our amazing pass rate!
Check out a video overview of Solomon Exam Prep’s industry leading Online Exam Simulator. Continue reading
This is a video overview of Solomon Exam Prep’s industry leading Online Exam Simulator.
The Solomon Online Exam Simulator is an essential tool in studying for your FINRA, NASAA, or MSRB exam. Solomon Exam Simulators are updated on a daily basis and contain 1,000’s of high quality practice exam questions with detailed rationales.
To order exam prep materials please head to our main website http://solomonexamprep.com or give us a call at 503.601.0212.
Effective April 15, 2013, NASAA revised its model rules specifying who was considered a “qualified client.” The changes bring the rules in line with changes made to federal rules. Continue reading
Effective April 15, 2013, NASAA revised its model rules specifying who is considered a “qualified client.” A qualified client may enter into a performance-based compensation arrangement with an investment adviser.
The changes bring the rules in line with changes made to federal rules (updates on those changes can be found here).
The changes are as follows:
-Clarifies that advisers that are exempt from registration may charge performance-based fees.
-Ties the definition of a qualified client to the definition provided by the federal rule. The standard is currently $1 million in assets under management with the adviser or $2 million in net worth, excluding the value of the client’s primary residence. These amounts will be adjusted for inflation every five years.
-Clarifies that an investor in a private fund must be a qualified client in order for an adviser to charge them performance-based fees. An adviser cannot simply consider the fund itself a “qualified client” in order to charge the investors performance-based fees. If a fund consists of both qualified and non-qualified clients, the adviser may only charge performance-based fees to the qualified clients.
-Put transitional rules into place so that if the rules change, existing contracts will not suddenly be in violation of the new rules. The contract must be in compliance with the rules as of the last time it was entered into, extended, or otherwise renewed.
Sources: Model Rule 102(f)-3
Notice of Request for Public Comment: Proposed Changes to Performance Fee Model Rules Under the Uniform Securities Acts of 1956 and 2002
This alert applies to the Series 63, Series 65, and Series 66.
This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 65 and Series 66. –ANSWER POSTED– Continue reading
This week’s study question from the Solomon Online Exam Simulator question database is now available.
Question (Relevant to the Series 65 and Series 66):
Over a five year period, the annual returns on a particular investment were 15%, -10%, -5%, 10%, 10%. What is the most appropriate measure of central tendency for this investment?
Answers:
A. arithmetic mean
B. geometric mean
C. median
D. mode
Correct Answer: B. geometric mean
Rationale: Central tendency is a single value that summarizes a set of scores. The geometric mean is the most accurate measure of central tendency for a set of returns because the returns for each year on an investment are not independent of one another. Each year your total capital is shrinking or growing depending on the performance of the previous year, so that a 10% increase one year may be different than a 10% increase in another year. The arithmetic average does not account for this fact. The geometric mean does account for this, and thus gives the investor a truer representation of the central tendency of their returns.
Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.
This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 62, Series 65, and Series 66. –ANSWER POSTED– Continue reading
This week’s study question from the Solomon Online Exam Simulator question database is now available.
Question (Relevant to the Series 6, Series 7, Series 62, Series 65, and Series 66):
Your father bought 200 shares of stock in Acme Holdings in 1982 at $20 per share. On the day he died and left the shares to you, the stock was worth $45 per share. You sold all of the shares one month later for $48 per share. What is your tax burden on this sale?
Answers:
A. You pay long-term capital gains tax on $5600.
B. You pay long-term capital gains tax on $5000 and short-term capital gains on $600.
C. You pay long-term capital gains tax on $600.
D. You pay short-term capital gains tax on $5600.
Correct Answer: C. You pay long-term capital gains tax on $600.
Rationale: Your basis in these shares is their value on the day your father died (200 X $45 = $9000). Your proceeds from the sale are $9600. Your capital gain is $600, and the IRS treats this as a long-term capital gain.
Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.
This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 24, Series 26, Series 62, Series 65, and Series 66. –ANSWER POSTED– Continue reading
This week’s study question from the Solomon Online Exam Simulator question database is now available.
Question (Relevant to the Series 6, Series 7, Series 24, Series 26, Series 62, Series 65, and Series 66):
Roth IRAs are more liquid than traditional IRAs in what way?
Answers:
A. they offer tax-free distribution
B. they allow for the withdrawal of all principal contributions at any time without tax or penalty
C. there are a larger number of exceptions available to the early withdrawal penalty
D. there are no mandatory minimum distributions required
Correct Answer: B. they allow for the withdrawal of all principal contributions at any time without tax or penalty
Rationale: Although Roth IRAs do offer tax-free distributions and have no mandatory minimum distributions, their advantage in liquidity lies in the ability of the account owner to withdraw all principal contributions at any time, including before age 59 1/2.
Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.
This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 63, Series 65, and Series 66. –ANSWER POSTED– Continue reading
This week’s study question from the Solomon Online Exam Simulator question database is now available.
Question (Relevant to the Series 63, Series 65, and Series 66):
Which of the following are likely to be exempt from state registration as an investment adviser under the Uniform Securities Act?
I. A certified public accountant (CPA) who reviews client asset allocations upon request
II. An individual representative of a firm that offers investment advice and management for a fee
III. A federally covered investment adviser
Answers:
A. I and II
B. I and III
C. I, II, and III
D. II and III
Correct Answer: C.
Rationale: Federal law and the Uniform Securities Act define investment advisers as people who provide investment advice in exchange for compensation of some kind, but there are several types of exemptions, including: an investment adviser representative (IAR) working for an investment adviser (so II is exempt); a bank, savings institution, or trust company; a lawyer, accountant, teacher, or engineer whose provision of investment advice is incidental to their profession (so the CPA is exempt); a broker-dealer or its agents if the provision of investment advice is incidental to its business of buying and selling securities and not directly compensated; a publisher of a bona fide publication of general and regular circulation; a federally covered investment adviser (III is exempt). If the RIA is federally covered (registered with the SEC as an RIA), then it does not have to register at the state level. However, any of its IARs doing business in the state are required to register.
Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.
This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 7, Series 62, Series 65, and Series 66. –ANSWER POSTED– Continue reading
This week’s study question from the Solomon Online Exam Simulator question database is now available.
Question (Relevant to the Series 7, Series 62, Series 65, and Series 66):
An investor wishing to hedge a short position AND put a little extra cash in his pocket at the same time will…
Answers:
A. Buy calls on the stock
B. Buy puts on the stock
C. Sell calls on the stock
D. Sell puts on the stock
Correct Answer: D. Sell puts on the stock
Rationale: Short sellers are bears; thus, they need to take a bullish position to hedge a short one. This can be done by buying calls or selling puts. Buying calls, however, takes money OUT of your pocket, while selling puts puts money IN your pocket.
Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.
This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 7, Series 62, Series 65, Series 66, Series 79, and Series 82. –ANSWER POSTED– Continue reading
This week’s study question from the Solomon Online Exam Simulator question database is now available.
Question (Relevant to the Series 6, Series 7, Series 62, Series 65, Series 66, Series 79, and Series 82):
Which of the following Treasury securities does not pay interest semi-annually?
Answers:
A. T-bills
B. T-notes
C. T-bonds
D. TIPS
Correct Answer: A
Rationale: Treasury bills, or T-bills are issued at a discount from the par value (face value) and the interest payment is paid one time, on maturity, and it is the difference between the par value and the purchase price. T-notes, T-bonds and TIPS pay interest semi-annually (twice a year).
Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.
