Produktbild: Wiley Series 6 Exam Review 2015 + Test Bank

Wiley Series 6 Exam Review 2015 + Test Bank The Investment Company Products / Variable Contracts Limited Representative Examination

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Beschreibung

Produktdetails

Einband

Taschenbuch

Erscheinungsdatum

20.01.2015

Verlag

John Wiley & Sons Inc

Seitenzahl

360

Maße (L/B/H)

27.7/17/1.5 cm

Gewicht

860 g

Auflage

3. Auflage

Sprache

Englisch

ISBN

978-1-118-85704-5

Beschreibung

Produktdetails

Einband

Taschenbuch

Erscheinungsdatum

20.01.2015

Verlag

John Wiley & Sons Inc

Seitenzahl

360

Maße (L/B/H)

27.7/17/1.5 cm

Gewicht

860 g

Auflage

3. Auflage

Sprache

Englisch

ISBN

978-1-118-85704-5

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  • Produktbild: Wiley Series 6 Exam Review 2015 + Test Bank
  • ABOUT THE SERIES 6 EXAM XV

    ABOUT THIS BOOK XIX

    ABOUT THE TEST BANK XXI

    ABOUT THE SECURITIES INSTITUTE OF AMERICA XXIII

    CHAPTER 1 EQUITY SECURITIES 1

    What Is a Security? 1

    Equity = Stock 2

    Common Stock 2

    Preferred Stock 12

    Options 20

    Calls 20

    Puts 20

    Bullish vs. Bearish 21

    Characteristics of All Options 21

    Exercise Price 22

    Buyer vs. Seller 22

    Possible Outcomes for an Option 22

    Currency Risks 23

    Functions of the Custodian Bank Issuing ADRs 23

    Real Estate Investment Trusts (REITs) 23

    Issuing Corporate Securities 24

    Types of Underwriting Commitments 24

    Types of Offerings 25

    Awarding the Issue 26

    The Underwriting Syndicate 26

    Selling Group 26

    Securities Markets 27

    The Exchanges 28

    Over the Counter/Nasdaq 28

    Market Makers 29

    Third Market 29

    Fourth Market 29

    Broker vs. Dealer 29

    Pretest 31

    CHAPTER 2 DEBT SECURITIES 35

    Corporate Bonds 35

    Types of Bond Issuance 36

    Bond Certificate 37

    Bond Pricing 37

    Corporate Bond Pricing 38

    Bond Yields 38

    Bond Maturities 41

    Types of Corporate Bonds 42

    Converting Bonds into Common Stock 45

    Advantages of Issuing Convertible Bonds 46

    Disadvantages of Issuing Convertible Bonds 46

    Convertible Bonds and Stock Splits 46

    The Trust Indenture Act of 1939 47

    Bond Indenture 47

    Ratings Considerations 47

    Retiring Corporate Bonds 48

    Collateralized Mortgage Obligation (CMO) 50

    CMOs and Interest Rates 50

    Types of CMOs 51

    Private-Label CMOs 52

    Exchange-Traded Notes (ETNs) 53

    Pretest 55

    CHAPTER 3 GOVERNMENT AND MUNICIPAL SECURITIES 59

    Series EE Bonds 59

    Series HH Bonds 60

    Treasury Bills, Notes, and Bonds 60

    Treasury Bond and Note Pricing 61

    Treasury Strips 62

    Treasury Receipts 62

    Treasury Inflation-Protected Securities (TIPS) 63

    Agency Issues 63

    Government National Mortgage Association (GNMA) 63

    Federal National Mortgage Association (FNMA) 64

    Federal Home Loan Mortgage Corporation (FHLMC) 64

    Federal Farm Credit System (FFCS) 64

    Municipal Bonds 65

    Legal Opinion 66

    Municipal Bond Insurance 66

    Tax Equivalent Yield 67

    Purchasing a Municipal Bond Issued in the State in Which the Investor Resides 67

    Triple Tax-Free 68

    Capital Gains 68

    Pretest 69

    CHAPTER 4 THE MONEY MARKET 71

    Money Market Instruments 71

    Corporate Money Market Instruments 71

    Government Money Market Instruments 73

    Municipal Money Market Instruments 74

    International Money Market Instruments 74

    Interest Rates 74

    Pretest 77

    CHAPTER 5 ECONOMIC FUNDAMENTALS 79

    Gross Domestic Product (GDP) 79

    Recession 81

    Depression 81

    Economic Indicators 81

    Economic Policy 83

    Tools of The Federal Reserve Board 83

    Fiscal Policy 86

    Consumer Price Index (CPI) 87

    Inflation/Deflation 87

    Real GDP 87

    International Monetary Considerations 88

    Pretest 89

    CHAPTER 6 MUTUAL FUNDS 93

    Investment Company Philosophy 93

    Types of Investment Companies 94

    Open-End vs. Closed-End Funds 95

    Diversified vs. Nondiversified 96

    Investment Company Registration 97

    Investment Company Components 99

    Mutual Fund Distribution 101

    Selling Group Member 101

    Distribution of No-Load Mutual Fund Shares 102

    Distribution of Mutual Fund Shares 102

    Mutual Fund Prospectus 102

    Characteristics of Open-End Mutual Fund Shares 103

    Mutual Fund Investment Objectives 104

    Other Types of Funds 106

    Bond Funds 106

    Valuing Mutual Fund Shares 108

    Changes in the NAV 109

    Sales Charges 109

    Calculating a Mutual Fund's Sales Charge Percentage 111

    Finding the Public Offering Price 112

    Sales Charge Reductions 112

    Breakpoint Schedule 113

    Letter of Intent 113

    Backdating a Letter of Intent 114

    Breakpoint Sales 114

    Rights of Accumulation 114

    Automatic Reinvestment of Distributions 115

    Other Mutual Fund Features 115

    Cost Base of Multiple Purchases 119

    Purchasing Mutual Fund Shares 120

    Sales Charges 123

    45-Day Free Look 123

    Withdrawal Plans 123

    Pretest 125

    CHAPTER 7 VARIABLE ANNUITIES AND LIFE INSURANCE 131

    Annuities 131

    Equity Indexed Annuity 134

    Annuity Purchase Options 135

    Accumulation Units 136

    Annuity Units 136

    Annuity Payout Options 136

    Factors Affecting the Size of the Annuity Payment 138

    The Assumed Interest Rate (AIR) 138

    Taxation 139

    Types of Withdrawals 139

    Annuitizing the Contract 139

    Expenses and Guarantees 140

    Other Charges 140

    Life Insurance 141

    Premiums and Death Benefits 143

    Assumed Interest Rate 144

    Variable Policy Features 145

    Pretest 147

    CHAPTER 8 RETIREMENT PLANS 151

    Individual Plans 151

    Individual Retirement Accounts (IRAs) 152

    Traditional IRAs 152

    Roth IRAs 153

    Simplified Employee Pension IRA (SEP IRA) 154

    Death of an IRA Owner 156

    Educational IRA/Coverdell IRA 156

    Tax-Sheltered Annuities (TSAs)/Tax-Deferred Accounts (TDAs) 158

    Corporate Plans 160

    Rolling Over a Pension Plan 162

    Employee Retirement Income Security Act of 1974 (ERISA) 162

    ERISA 404C SAFE HARBOR 164

    Pretest 165

    CHAPTER 9 CUSTOMER ACCOUNTS 169

    Holding Securities 171

    Mailing Instructions 172

    Types of Accounts 172

    Commingling Customer's Pledged Securities 182

    Wrap Accounts 182

    Regulation S-P 182

    Pretest 183

    CHAPTER 10 CUSTOMER RECOMMENDATIONS, PROFESSIONAL CONDUCT, AND TAXATION 187

    Professional Conduct in the Securities Industry 188

    Fair Dealings with Customers 188

    Periodic Payment Plans 193

    Mutual Fund Current Yield 193

    Information Obtained from an Issuer 193

    Disclosure of Client Information 194

    Borrowing and Lending Money 194

    Gift Rule 194

    Outside Employment 195

    Private Securities Transactions 195

    Customer Complaints 195

    Investor Information 195

    NYSE/FINRA Know Your Customer 196

    Investment Objectives 197

    Risk vs. Reward 199

    Alpha 200

    Beta 201

    Tax Structure 201

    Investment Taxation 201

    Calculating Gains and Losses 202

    Cost Base of Multiple Purchases 202

    Deducting Capital Losses 203

    Wash Sales 203

    Taxation of Interest income 204

    Inherited Securities 204

    Donating Securities to Charity 205

    Gift Taxes 205

    Estate Taxes 205

    Withholding Tax 206

    Corporate Dividend Exclusion 206

    Alternative Minimum Tax (AMT) 206

    Taxes on Foreign Securities 206

    Pretest 207

    CHAPTER 11 SECURITIES INDUSTRY RULES AND REGULATIONS 213

    The Securities Exchange Act of 1934 213

    The Securities and Exchange Commission (SEC) 214

    Extension of Credit 215

    The National Association of Securities Dealers (NASD) 215

    Becoming a Member of FINRA 217

    Registration of Agents/Associated Persons 217

    Disciplinary Actions Against a Registered Representative 218

    Resignation of a Registered Representative 218

    Continuing Education 219

    Firm Element Continuing Education 219

    Regulatory Element 220

    Termination for Cause 220

    Retiring Representatives/Continuing Commissions 221

    State Registration 221

    Registration Exemptions 221

    Persons Ineligible to Register 221

    Communications with the Public 222

    FINRA Rule 2210 Communications with the Public 223

    Broker Dealer Websites 225

    Blind Recruiting Ads 226

    Generic Advertising 226

    Tombstone Ads 226

    Testimonials 227

    Free Services 227

    Misleading Communication with the Public 228

    Securities Investor Protection Corporation Act of 1970 228

    Net Capital Requirement 228

    Customer Coverage 228

    Fidelity Bond 229

    The Insider Trading & Securities Fraud Enforcement Act of 1988 229

    Firewall 230

    The Telephone Consumer Protection Act of 1991 230

    Exemption from the Telephone Consumer Protection Act of 1991 231

    The Role of the Principal 231

    Violations and Complaints 232

    Resolution of Allegations 232

    Minor Rule Violation 232

    Code of Arbitration 233

    The Arbitration Process 233

    Mediation 234

    Currency Transactions 235

    The Patriot Act 235

    U.S. Accounts 236

    Foreign Accounts 236

    Annual Compliance Review 237

    Business Continuity Plan 237

    Sarbanes-Oxley Act 237

    The Uniform Securities Act 239

    Pretest 241

    ANSWER KEYS 247

    GLOSSARY OF EXAM TERMS 257

    INDEX 323