“The virtual class and the test questions really helped me pass the Series 26. Thank you.” Continue reading
“The virtual class and the test questions really helped me pass the Series 26. Thank you.” -Todd Brubaker, Western & Southern Life, Akron, OH
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This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, Series 24, Series 26, Series 52, Series 62, 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 24, Series 26, Series 52, Series 62, Series 79, and Series 82):
When must a Suspicious Activity Report be filed under the Bank Secrecy Act?
Answers:
A. Within 15 days of the transaction
B. Within 15 days of discovery
C. Within 30 days of the transaction
D. Within 30 days of discovery
Correct Answer: D. Within 30 days of discovery
Rationale: The Bank Secrecy Act requires that money service businesses file Suspicious Activity Reports (SARs) within 30 days of becoming aware of any suspicious transaction that is required to be reported. In the securities business, suspicious transactions are required to be reported if they involve $5,000 or more. A copy of the report must be kept for five years.
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, and Series 65. –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, and Series 65):
According to the Investment Company Act of 1940, for 75% of its assets, a diversified mutual fund will have:
Answers:
A. No more than 5% of its assets in any one company, and will own no more than 5% of any company’s outstanding shares
B. No more than 5% of its assets in any one company, and will own no more than 10% of any company’s outstanding shares
C. No more than 10% of its assets in any one company, and will own no more than 5% of any company’s outstanding shares
D. No more than 10% of its assets in any one company, and will own no more than 10% of any company’s outstanding shares
Correct Answer: B. No more than 5% of its assets in any one company, and will own no more than 10% of any company’s outstanding shares
Rationale: According to the Investment Company Act of 1940, for 75% of its assets, a diversified mutual fund will have no more than 5% of its assets in any one company, and will own no more than 10% of any company’s outstanding shares.
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 24, Series 26, Series 62, Series 82, and Series 99. –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 24, Series 26, Series 62, Series 82, and Series 99):
Jenny and Sam each have an individual account, and they have a joint account, and an UGMA account for their daughter Sarah. What is the combined maximum amount that is covered by the SIPC for the four accounts?
Answers:
A. $500,000
B. $1,000,000
C. $1,500,000
D. $2,000,000
Correct Answer: D. $2,000,000
Rationale: SIPC covers a maximum of $500,000 per “separate customer” at a broker-dealer or clearing firm including up to $250,000 in cash. Total coverage can be higher for multiple accounts if the accounts are considered to be held by separate customers. There are five categories of separate customers defined by the SIPC. These categories include 1) individual accounts, 2) joint accounts, 3) accounts held by executors, administrators, and guardians/custodians/conservators (such as UGMA accounts), 4) accounts held by corporations, partnerships, or unincorporated associations, and 5) trust accounts. Thus, two individual accounts held by two different people, one joint account, and one UGMA account would be considered four separate customers by the SIPC, and therefore subject to a maximum of $2,000,000 of coverage.
Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.
“I passed the Series 26 today with a score of 82%. Your exam simulator helped tremendously.” Continue reading
“I passed the Series 26 today with a score of 82%. Your exam simulator helped tremendously.” -Ray Pecharich, Primerica, Sarasota, FL
Read more reviews here: Solomon Exam Prep Reviews
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, 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 24, Series 26, Series 62, and Series 82):
Which regulation empowers the Federal Reserve to regulate credit associated with the purchase of securities?
Answers:
A. The Exchange Act of 1934
B. The Securities Act of 1933
C. Regulation T
D. Regulation U
Correct Answer: A. The Exchange Act of 1934
Rationale: Section 7 of the Exchange Act of 1934 empowers the Federal Reserve to regulate credit associated with respect to the purchase of securities, also known as margin. Its intent is to manage the amount of speculative activity that can be applied to securities transactions and to manage the supply of money in the credit markets.The Federal Reserve responded to its new powers by enacting Regulation T, which places credit restrictions on broker-dealers by establishing initial margin requirements and prescribing how a margin transaction must be maintained. Initial margin requirements are currently set at 50%. Regulation T was soon followed in 1936 by Regulation U, which imposes credit restrictions on other lenders that would finance margin transactions, such as banks. Regulation U forbids banks from extending more credit than the “maximum loan value” for margin securities, which it identifies as 50% of the stock’s current market value.
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, 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 24, Series 26, Series 62, and Series 82):
Which of the following best describes Regulation U?
Answers:
A. Places credit restrictions on broker-dealers by establishing initial margin requirements and prescribing how a margin transaction must be maintained
B. Empowers the Federal Reserve to regulate credit associated with respect to the purchase of securities, also known as margin
C. Requires broker-dealers to be registered
D. Imposes credit restrictions on non-broker-dealer lenders that may finance margin transactions such as banks
Correct Answer: D.
Rationale: Section 7 of the Exchange Act of 1934 empowers the Federal Reserve to regulate credit associated with respect to the purchase of securities, also known as margin. Its intent is to manage the amount of speculative activity that can be applied to securities transactions and to manage the supply of money in the credit markets.
The Federal Reserve responded to its new powers by enacting Regulation T, which places credit restrictions on broker-dealers by establishing initial margin requirements and prescribing how a margin transaction must be maintained. Initial margin requirements are currently set at 50%. Regulation T was soon followed in 1936 by Regulation U, which imposes credit restrictions on other lenders that would finance margin transactions, such as banks. Regulation U forbids banks from extending more credit than the “maximum loan value” for margin securities, which it identifies as 50% of the stock’s current market value.
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 6, Series 7, Series 24, Series 26, and Series 99. –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, and Series 99):
Under FINRA Rule 2830, an associated person may accept which of the following gifts from a mutual fund distributor?
Answers:
A. Reimbursement for out-of-pocket expenses incurred by the associated person and his spouse in attending an educational conference
B. Occasional meals and NFL tickets tied to a stated annual sales quota
C. A crisp new $100 bill delivered once every year on Christmas eve
D. None of the choices listed
Correct Answer: D. None of the choices listed
Rationale: Rule 2830 prohibits all of these gifts from a mutual fund distributor to an associated person; specifically, any cash compensation (unless described in a current prospectus of the investment company), meals and tickets tied to a sales target, and reimbursement for meeting expenses incurred by anyone other than the associated person.
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 79, Series 82 and Series 99. –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 79, Series 82 and Series 99):
A registered representative wishes to participate in a securities transaction outside of the jurisdiction of his firm. He does not receive compensation for the transaction. Which of the following is true?
Answers:
A. The registered representative needs to inform his firm prior to participating and adhere to any conditions that the firm puts on the rep in connection with the rep’s participation
B. The registered representative does not need to inform his firm because he is not receiving compensation
C. The registered representative needs to inform his firm and await permission before participating in the securities transaction
D. The registered representative cannot participate in any outside securities transactions because it is considered selling away and it is prohibited
Correct Answer: A.
Rationale: A “private securities transaction“ shall mean any securities transaction outside the regular course or scope of an associated person’s employment with a member. A registered representative who wishes to participate in private securities transactions needs to notify his firm and await permission if he will be receiving compensation. If he will not receive compensation, he must notify his firm. The firm shall provide the representative prompt written acknowledgement of the notice and at the firm’s discretion require the person to adhere to specified conditions in connection with the rep’s participation in the transaction.
Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.
