Tag: Series 6

Study Question of the Week: January 8, 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, and Series 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 6, Series 7, Series 62, and Series 82): 

Which of the following bonds are subject to Federal income tax on the interest they pay?

I. GNMA’s

II. Corporate bonds

III. Commercial paper

IV. Treasury Bills

Answers:

A. I and IV

B. II and IV

C. I, II, and III

D. I, II, III, and IV

 

Correct Answer: D. I, II, III, and IV

Rationale: All of these bonds are subject to Federal income tax. It is only certain types of municipal bonds that are exempt from Federal taxation.

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

Testimonial Tuesday: January 7, 2014 Edition

“Your test simulator was invaluable. I took 1500 test questions before the real exam (Series 6). Scored an 89, thanks to your product.” Continue reading

“Your test simulator was invaluable. I took 1500 test questions before the real exam (Series 6). Scored an 89, thanks to your product.” -Jesse Welch, New York Life, Arvada, CO

 

Read more reviews here: Solomon Exam Prep Reviews

Study Question of the Week: January 2, 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 79, and Series 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 6, Series 7, Series 62, Series 79, and Series 82): 

10 bond points on a corporate bond is equivalent to:

Answers:

A. $10

B. $100

C. $1,000

D. 10% of a bond’s current value

Correct Answer: B. $100

Rationale: A “point” is an abbreviated term for “one percentage point” of the par value. With regards to corporate bonds, it generally refers to $10 increments of a $1,000 par value bond’s price.

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

 

Study Question of the Week: December 26, 2013 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 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.

Study ? of the Week

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.

Study Question of the Week: December 18, 2013 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 65, and Series 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 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.

Study Question of the Week: November 20, 2013 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 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.

Study ? of the Week

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.

Exam Alert: FINRA Revises Series 6 Outline

On December 16, 2013, FINRA will implement a revision to the Series 6 Investment Company and Variable Contracts Products Representative examination. If you will be taking the Series 6 exam before December 16th you will not be affected, but if not, keep on reading! Continue reading

On December 16, 2013, FINRA will implement a revision to the Series 6 Investment Company and Variable Contracts Products Representative examination. Periodically, FINRA revises its qualification exams to parallel changes made to laws, rules, and regulations associated with the content tested on the exam. If you will be taking the Series 6 exam before December 16th you will not be affected, but if not, keep on reading!

The most significant change will be to the organization of the Series 6 exam.  Rather than having six sections covering individual topics, there will be four sections relating to job functions:

  • Function 1 — Regulatory fundamentals and business development (22 questions)
  • Function 2 — Customers’ financial information, identifies investment objectives, provides information on investment products, and makes suitable recommendations (47 questions)
  • Function 3 — Opens, maintains transfers and closes accounts, and retains appropriate account records (21 questions)
  • Function 4 — Obtains, verifies, and confirms customer purchase and sale instructions (10 questions)

All of the information on the present outline (and Solomon Exam Prep’s current study materials) will still be covered on the updated Series 6 exam. However, FINRA is adding several rules that anyone sitting for the exam after December 16 should know, including:

  • FINRA Rule 8312 – FINRA BrokerCheck Disclosure
  • FINRA Rule 2266 – Disclosure of SIPC Information
  • FINRA Rule 3220 – Influencing or Rewarding Employees of Others
  • FINRA Rule 11870 – Customer Account Transfer Contracts
  • NASD 2510 – Discretionary Accounts
  • NASD 3110(i) – Holding of Customer Mail
  • NASD 2340 – Customer Account Statements

Solomon Exam Prep continually updates materials to mirror the changes in the exams so a new Series 6 study guide will be available soon (and the exam simulator even sooner).  Until then, a detailed summary of the additions to the Series 6 is available to Solomon customers in the Solomon Exam Prep online system, located in the “resources” folder.

The revised study outline is available on FINRA’s website.

Source: http://www.finra.org/

Testimonial Tuesday: November 19, 2013 Edition

“Your exam prep is the best! Passed both the 6 and 63 using Solomon and I recommend it to everyone.” -Karen, Colorado Springs, CO Continue reading

 

“Your exam prep is the best! Passed both the 6 and 63 using Solomon and I recommend it to everyone.” -Karen, Colorado Springs, CO

 

Read more reviews here: Solomon Exam Prep Reviews

 

 

Study Question of the Week: November 13, 2013 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, and Series 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 6, Series 7, Series 62, Series 65, and Series 82): 

Which of the following statements are true about government agency-issued bonds?

I. They typically have a lower face value than other bonds
II. Interest is paid on a monthly basis
III. The maturity date is always specified
IV. They are known as high-risk investments

Answers:

A. II and III

B. III and IV

C. II only

D. I and II

Correct Answer: C. II only

Rationale: Government agency-issued bonds typically have higher face value than other bonds and their maturity dates are often not specified. Interest is typically paid on a monthly basis and these bonds are generally low-risk investments.

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

Study Question of the Week: October 30, 2013 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, 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.

Study ? of the Week

Question (Relevant to the Series 6, Series 7, Series 62, Series 65, Series 66, Series 79, and Series 82): 

Johnny owns several U.S. Treasury Notes, he reads in the paper that the discount rate has fallen. What can Johnny safely infer about his Treasury Notes?

Answers:

A. On the market, the price of his Treasury Notes has fallen

B. On the market, the price of his Treasury Notes has risen

C. His annual interest from the Notes will increase

D. His annual interest from the Notes will decrease

Correct Answer: B. On the market, the price of his Treasury Notes has risen

Rationale: When the discount rate falls, this suggests that interest rates in general have lowered. This will make the Treasury Notes that Johnny is holding more attractive to buyers because they paid a higher interest rate than what new Treasury Notes are paying. Thus, the price of his Treasury Notes will have risen on the secondary market because buyers are willing to pay a premium for them. The annual interest paid on Treasury Notes is fixed so it will neither increase nor decrease.

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