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.
Question (Relevant to the Series 6, Series 7, Series 62, Series 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.
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.
Question (Relevant to the Series 6, Series 7, Series 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.
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.
Question (Relevant to the Series 6, Series 7, Series 24, Series 26, Series 55, Series 62, Series 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.
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:
Tuesday, September 9 – 10:00 AM – 3:00 PM
Wednesday, September 10 – 10:00 AM – 3:00 PM
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.
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.
Question (Relevant to the Series 6, Series 7, Series 62, Series 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.
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.
Question (Relevant to the Series 6, Series 7, Series 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.
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.
Question (Relevant to the Series 6, Series 7, Series 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.
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.
“Solomon has the best study material on the market! I purchased study material from several other providers that doesn’t even remotely compare. I could go on and on all day why I favor Solomon…” Continue reading
“Solomon has the best study material on the market! I purchased study material from several other providers that doesn’t even remotely compare. I could go on and on all day why I favor Solomon. Cayce has been very thorough, efficient, courteous, informative and I can’t leave out helpful! I walked out of the testing center yesterday after passing my Series 6 with a big smile on my face and tremendous load of burden lifted off my shoulders.” -Stephen Snyder, Oklahoma
Read more reviews here: Solomon Exam Prep Reviews
Solomon Exam Prep is happy to announce that we are hosting a Series 6 & Series 63 live, in-person class with Professor Solomon. Continue reading
Do you live in the Portland area? Solomon Exam Prep is happy to announce that we are hosting a Series 6 & Series 63 live, in-person class with Professor Solomon. This “crash course” will be over the course of 3 days, from Monday, June 23 – Wednesday, June 25th. Here is the breakdown:
Monday, June 23
10:00-12:00| Series 6 CLASS
12:00-1:00| LUNCH BREAK
1:00-3:00| Series 6 CLASS
Tuesday, June 24
10:00-12:00| Series 6 CLASS
12:00-1:00| LUNCH BREAK
1:00-3:00| Series 6 CLASS
Wednesday, June 25
10:00-12:00| Series 63 CLASS
12:00-1:00| LUNCH BREAK
1:00-3:00| Series 63 CLASS
Classes will be held across the street from Solomon Exam Prep at the George Fox Portland Center: 12753 SW 68th Ave, Portland, OR 97223. All interested students should give us a call at 503.601.0212 to reserve their spot before the class fills up!
