Testimonial Tuesday: February 10, 2015 Edition

“I passed my Series 63 today with an 85% and Series 6 two weeks back with an 80%…” Continue reading

“I passed my Series 63 today with an 85% and Series 6 two weeks back with an 80%. I was very nervous, but studying was made easy with Solomon Exam Prep; their simple Plain English explanations helped fight that legalese on the Series 63 especially. I totally owe this to the Solomon team, their awesome question bank, and friendly staff. “Ask the Professor” is prompt in answering all your queries. I’m definitely recommending their program to my employer.”  

-Priya R., PA

 — Read more reviews here: Solomon Exam Prep Reviews —

New Solomon Exam Prep Study Guides!

To ring in the New Year, Solomon Exam Prep is pleased to announce the publication of new Exam Study Guides for the FINRA Series 6, FINRA Series 7, and NASAA Series 65. Continue reading

Solomon Exam Prep has been publishing study materials for securities exams for over ten years. Keeping our materials up-to-date and constantly adding product offerings is just part of the reason why Solomon Exam Prep boasts a first-time pass rate of 92% across all exams with thousands of happy customers.

New BooksTo ring in the New Year, Solomon Exam Prep is pleased to announce the publication of new Exam Study Guides for the FINRA Series 6, FINRA Series 7, and NASAA Series 65.

President and founder Jeremy Solomon emphasizes the importance of up-to-date study materials: “Once upon a time, you could use an old textbook from a friend and expect to pass your Series 7.  In those pre-Dodd-Frank and Bernie Madoff days, regulations and securities licensing exams in particular, didn’t change that often. Today like everything else, the rules and the exams change at a dizzying pace. Financial scandals, and the changing views of Congress, the regulators and the courts, mean that students who want the best chance of passing need current materials. Even more so now that the required passing scores of many exams have been increased. The bar has never been higher.”

With detailed explanations, visual study aids, and example questions, these new Study Guides will keep you engaged as you prepare for your exam. Solomon Exam Prep also produces Online Exam Simulators, Audiobooks and On-Demand Study Courses to make learning even easier. Check out the Solomon Exam Prep website for the full suite of product offerings: http://solomonexamprep.com.​

Updated for 2015, Solomon’s Exam Study Guides are the key to helping you pass your exam!

 

Study Question of the Month – November

This month’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, 7, 62, 79, and 82. –ANSWER POSTED– Continue reading

This month’s study question from the Solomon Online Exam Simulator question database is now available.

 Study Question

Question (Relevant to the Series 6Series 7Series 62, Series 79 and Series 82): 

As the price of the underlying stock of a convertible debenture goes up:

I. The parity value of the bond increases.
II. The current yield of the bond goes up.
III. The parity value of the bond decreases.
IV. The current yield of the bond goes down.

Answers:

A. I and III

B. III and IV

C. II and III

D. I and IV

Correct Answer: D. I and IV

Rationale: With a fixed conversion schedule, the parity value of the bond increases along with the price of the underlying stock. Since the nominal yield of the bond is fixed, the current yield, expressed as a percent of the bond’s price, goes down.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Month – October

This month’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, 7, 62, 65, 66, and 82. –ANSWER POSTED– Continue reading

This month’s study question from the Solomon Online Exam Simulator question database is now available.

 Study Question

Question (Relevant to the Series 6Series 7Series 62Series 65, Series 66 and Series 82): 

The decimal equivalent of a basis point is:

Answers:

A. 0.01

B. 0.001

C. 0.0001

D. 0.00125

Correct Answer: C. 0.0001

Rationale: A basis point is one-hundredth of one percent, or .0001.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Month – September

This month’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, 7, 62, 65, and 66. –ANSWER POSTED– Continue reading

This month’s study question from the Solomon Online Exam Simulator question database is now available.

 Study Question

Question (Relevant to the Series 6Series 7Series 62, Series 65, and Series 66): 

Your client owns stock mutual funds in an account with automatic reinvestment of dividends and capital gains. What happens to the value of his account on ex-dividend dates?

Answers:

A. The value of the account shrinks by the amount of the distribution

B. The value of the account grows by the amount of the distribution, and it is a taxable event for him

C. The value of the account remains unchanged, and it is a taxable event for him

D. The value of the account remains unchanged, and it is not a taxable event for him

Correct Answer: C. The value of the account remains unchanged, and it is a taxable event for him

Rationale: Upon distribution and reinvestment of dividends or capital gains, the client ends up with more shares, and each share is worth slightly less. The value of the account is unchanged. The mutual fund company reports these distributions annually to the IRS, and they are treated as taxable income.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Week: August 27, 2014 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, 7, 24, 26, 55, 62, 79, and 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6Series 7Series 24, Series 26, Series 55, Series 62Series 79, and Series 82): 

What is the maximum civil penalty that can be imposed on a firm when an employee engages in insider trading?

Answers:

A. The greater of $1,000,000, or three times the amount of the profit gained or loss avoided as a result of the violation

B. The lesser of $1,000,000, or three times the amount of the profit gained or loss avoided as a result of the violation

C. Three times the amount of the profit gained or loss avoided as a result of the violation

D. $0

Correct Answer: A. The greater of $1,000,000, or three times the amount of the profit gained or loss avoided as a result of the violation

Rationale: The maximum civil penalty that can be imposed on a firm when an employee engages in insider trading is the greater of $1,000,000, or three times the amount of the profit gained or loss avoided as a result of the violation.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Portland, OR – Live, Series 6 & 63 Class this September

Solomon Exam Prep will be holding a “crash course” for the Series 6 & Series 63 this September. Taught by Professor Karen Solomon, this class will cover the major topics that will be encountered on these exams. Enroll now and reserve your spot in class. Continue reading

Looking for a Live, Series 6 and/or Series 63 Class? Look no further!

Solomon Exam Prep will be holding a “crash course” for the Series 6 & Series 63 this September. Taught by Professor Karen Solomon, this class will cover the major topics that will be encountered on these exams. Enroll now and reserve your spot in class. The Live-Class Package for the Series 6 & 63 also includes access to our Digital Exam Study Guide and Online Exam Simulator. Class dates and times are:

Series 6

Tuesday, September 9 – 10:00 AM – 3:00 PM

Wednesday, September 10 – 10:00 AM – 3:00 PM

Series 63

Thursday, September 11 – 10:00 AM – 3:00 PM

Classes will be held across the street from Solomon Exam Prep at the George Fox Portland Center:12753 SW 68th Ave, Portland, OR 97223.

Study Question of the Week: August 6, 2014 Edition

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, and Series 99. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6Series 7, Series 62Series 65, Series 66, and Series 99): 

A client wants to open a custodial IRA account for his minor daughter who has earned a couple thousand dollars babysitting. Which of the following would be the best choice?

Answers:

A. Traditional IRA

B. Roth IRA

C. SIMPLE IRA

D. SEP IRA

Correct Answer: B. Roth IRA

Rationale: SEP and Simple IRAs are for small businesses. A traditional IRA would work but since the client’s daughter doesn’t have enough income to take advantage of the tax deduction benefit from a traditional IRA, the Roth IRA is the best choice since it will permit her to eventually withdraw tax-free.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Week: July 23, 2014 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, 7, 65, and 66. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6Series 7Series 65, and Series 66): 

The IRS uses the FIFO method for taxing:

Answers:

A. Withdrawals from a life insurance contract

B. Withdrawals in excess of the basis in a variable annuity contract

C. Loans from a life insurance contract

D. None of the choices listed

Correct Answer: A. Withdrawals from a life insurance contract

Rationale: Life insurance enjoys “first in, first out“ treatment from the IRS. Annuities are taxed on a LIFO basis, and money borrowed from a life insurance contract is not taxed at all.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.

Study Question of the Week: July 16, 2014 Edition

This week’s study question from the Solomon Online Exam Simulator question database is now available. Relevant to the Series 6, 7, 62, 65, 66, and 82. –ANSWER POSTED– Continue reading

This week’s study question from the Solomon Online Exam Simulator question database is now available.

Study ? of the Week

Question (Relevant to the Series 6Series 7Series 62, Series 65, Series 66, and Series 82): 

Ross receives 50 shares of ABC Co. as a gift, then later inherits an additional 50 shares of ABC Co. The shares were all originally purchased at $10/share. When Ross receives the shares as a gift, they are worth $20/share. When Ross inherits the shares, they are worth $30/share. When Ross eventually all sells the shares, they are worth $50/share. What is Ross’s total cost basis when he sells the shares?

Answers: 

A. $1,000

B. $2,000

C. $2,500

D. $5,000

Correct Answer: B. $2,000

Rationale: Inherited shares received a stepped up cost basis based on their market value at the time of the prior owner’s death. Shares received as a gift maintain their original cost basis. So the cost basis of the inherited shares is $1,500 ($30/share * 50 shares) while the cost basis of the gifted shares is $500 ($10/share * 50 shares). Adding them together gives a total cost basis of $2,000.

Weekly study questions are from Solomon’s industry-leading Online Exam Simulator.