Wiley Series 66 Exam Review 2016 + Test Bank: The Uniform Combined State Law Examination(Wiley FINRA)

The go-to guide to acing the Series 66 Exam! Passing the Uniform Combined State Law Examination (Series 66) qualifies an individual to represent both a broker-dealer and an investment adviser. It covers such topics as client investment strategies and ethical business practices. Taken as a corequisite with the Series 7 Exam, candidates must complete the Series 66 Exam in order to register as an agent with a state securities administrator. Created by the experts at The Securities Institute of America, Inc., Wiley Series 66 Exam Review 2016 arms you with what you need to score high on this tough 100-question test. Designed to help you build and fine-tune your knowledge of all areas covered in the exam and to guarantee that you're prepared mentally and strategically to take the test, it provides: Dozens of examples Assorted practice questions for each subject area covered in the exam Priceless test-taking tips and strategies Helpful hints on how to study for the test, manage stress, and stay focused Wiley Series 66 Exam Review 2016 is your ticket to passing this difficult test on the first try—with flying colors!

Table of Contents:
ABOUT THE SERIES 66 EXAM xiii ABOUT THIS BOOK xvii ABOUT THE TEST BANK xix ABOUT THE SECURITIES INSTITUTE OF AMERICA xxi CHAPTER 1 DEFINITION OF TERMS 1 Security 1 Person 3 Broker Dealer 4 Agent 4 Issuer 5 Nonissuer 5 Investment Adviser 5 Pension Consultants 6 Investment Counsel 6 Form ADV 7 Investment Adviser Registration Database (IARD) 8 Investment Adviser Representative 8 Solicitor 9 Access Person 9 Institutional Investor 9 Accredited Investor 10 Qualified Purchaser 10 Private Investment Company 11 Offer/Offer to Sell/Offer to Buy 11 Sale/Sell 11 Guarantee/Guaranteed 11 Contumacy 12 Federally Covered Exemption 12 Power of Attorney 12 Option Contracts 12 Call Options 13 Put Options 13 Futures and Forwards 13 Secondary Market Orders 14 Market Orders 14 Buy Limit Orders 14 Sell Limit Orders 15 Stop Orders/Stop Loss Orders 15 Buy Stop Orders 15 Sell Stop Orders 16 Pretest 17 CHAPTER 2 SECURITIES INDUSTRY RULES AND REGULATIONS 23 The Securities Act of 1933 23 The Securities Exchange Act of 1934 25 Public Utilities Holding Company Act of 1935 27 Financial Industry Regulatory Authority (FINRA) 27 The Trust Indenture Act of 1939 28 Investment Advisers Act of 1940 28 Investment Company Act of 1940 28 Retail Communications/Communications with the Public 29 FINRA Rule 2210 Communications with the Public 30 Blind Recruiting Ads 32 Generic Advertising 32 Tombstone Ads 33 Testimonials 33 Free Services 34 Misleading Communications 34 Securities Investor Protection Corporation Act of 1970 (SIPC) 35 The Securities Acts Amendments of 1975 36 The Insider Trading and Securities Fraud Enforcement Act of 1988 36 Firewall 37 The Telephone Consumer Protection Act of 1991 37 National Securities Market Improvement Act of 1996 38 The Uniform Securities Act 39 The Patriot Act 39 Pretest 41 CHAPTER 3 ECONOMIC FUNDAMENTALS 45 Gross Domestic Product 45 Recession 47 Depression 47 Economic Indicators 47 Schools of Economic Thought 49 Economic Policy 50 Tools of the Federal Reserve Board 50 Interest Rates 50 Reserve Requirement 51 Changing the Discount Rate 52 Federal Open Market Committee 52 Money Supply 53 Disintermediation 54 Moral Suasion 54 Fiscal Policy 54 International Monetary Considerations 56 London Interbank Offered Rate(LIBOR) 56 Yield Curve Analysis 56 Pretest 59 CHAPTER 4 CUSTOMER RECOMMENDATIONS, PROFESSIONAL CONDUCT, AND TAXATION 63 Professional Conduct by Investment Advisers 64 The Uniform Prudent Investors Act of 1994 64 Fair Dealings with Clients 65 Periodic Payment Plans 69 Disclosure of Client Information 70 Borrowing and Lending Money 70 Developing the Client Profile 70 Investment Objectives 73 Risk vs. Reward 75 Alpha 77 Beta 77 Predicting Portfolio Income 84 Fundamental Analysis 86 Capitalization 89 Tax Structure 91 Investment Taxation 91 Calculating Gains and Losses 91 Cost Base of Multiple Purchases 92 Deducting Capital Losses 93 Wash Sales 93 Taxation of Interest Income 94 Inherited and Gifted Securities 94 Donating Securities to Charity 94 Trusts 95 Gift Taxes 95 Estate Taxes 96 Withholding Tax 96 Corporate Dividend Exclusion 96 Alternative Minimum Tax (AMT) 97 Taxes on Foreign Securities 97 Pretest 99 CHAPTER 5 VARIABLE ANNUITIES, RETIREMENT PLANS, AND LIFE INSURANCE 103 Annuities 103 Equity-Indexed Annuities 106 Recommending Variable Annuities 107 Annuity Purchase Options 108 Accumulation Units 108 Annuity Units 109 Annuity Payout Options 109 Factors Affecting the Size of the Annuity Payment 110 The Assumed Interest Rate (AIR) 111 Taxation 111 Sales Charges 112 Variable Annuity vs. Mutual Fund 112 Retirement Plans 112 Individual Plans 113 Individual Retirement Accounts (IRAs) 113 529 Plans 116 Local Government Investment Pools (LGIPs) 117 IRA Contributions 118 IRA Accounts 118 IRA Investments 118 It Is Unwise to Put a Municipal Bond in an IRA 119 Rollover vs. Transfer 119 Keogh Plans (HR-10) 120 Contributions 120 Tax-Sheltered Annuities/Tax-Deferred Account 121 Contributions 122 Tax Treatment of Distributions 123 Corporate Plans 123 Non-Qualified Corporate Retirement Plans 123 Payroll Deductions 123 Deferred Compensation Plans 124 Qualified Plans 124 Types of Plans 124 Rolling Over a Pension Plan 126 Employee Retirement Income Security Act of 1974 (ERISA) 126 ERISA 404C Safe Harbor 128 Life Insurance 129 Premiums and Death Benefits 131 Assumed Interest Rate 132 Variable Policy Features 132 Sales Charges 134 Life Settlements 134 Tax Implications of Life Insurance 135 Pretest 137 CHAPTER 6 REGISTRATION OF BROKER DEALERS, INVESTMENT ADVISERS, AND AGENTS 141 Registration of Broker Dealers 141 Financial Requirements 142 Agent Registration 143 Registering Agents 145 Changes in an Agent’s Employment 145 Mergers and Acquisitions of Firms 145 Renewing Registrations 146 Canadian Firms and Agents 146 Investment Adviser State Registration 146 The National Securities Market Improvement Act of 1996 (The Coordination Act) 147 Investment Adviser Representative 148 State Investment Adviser Registration 149 Capital Requirements 149 Exams 150 Advertising and Sales Literature 150 Brochure Delivery 151 The Role of the Investment Adviser 152 Additional Compensation for an Investment Adviser 153 Agency Cross Transactions 153 Disclosures by an Investment Adviser 153 Investment Adviser Contracts 155 Additional Roles of Investment Advisers 156 Private Investment Companies/Hedge Funds 156 Fulcrum Fees 156 Wrap Accounts 156 Soft Dollars 157 Pretest 159 CHAPTER 7 SECURITIES REGISTRATION, EXEMPT SECURITIES, AND EXEMPT TRANSACTIONS 165 Exempt Securities 165 Securities Registration 166 Exempt Securities/Federally Covered Exemption 169 Exempt Transactions 170 Pretest 177 CHAPTER 8 STATE SECURITIES ADMINISTRATOR: THE UNIFORM SECURITIES ACT 183 Actions by the State Securities Administrator 183 Actions Against an Issuer of Securities 185 Rule Changes 186 Investigations 188 Civil and Criminal Penalties 188 Jurisdiction of the State Securities Administrator 189 Administrator’s Jurisdiction over Securities Transactions 189 Radio, Television, and Newspaper Distribution 192 Right of Rescission 192 Statute of Limitations 193 Pretest 195 ANSWER KEYS 201 GLOSSARY OF EXAM TERMS 211 INDEX 277