Which is the following are characteristic of short selling?
I. Borrowing shares of stock from a brokerage firm or other investors.
II. Selling shares of stock you do not own.
III. Betting the stock price will increase.
IV. Limiting losses per shares to the prices at which the stock was sold.
A. I,II,III only
B. I, II and IV only.
C. III and IV only
D. I and III Only
Answer: B
Investment
- Which TWO of the following statements are TRUE about real estate investment trusts (REITs)?
- Ms. Taylor purchased $25,000 of mutual fund shares. To date, the fund has paid her $1,000 of net investment income and $500 of capital gain distributions. If Ms. Taylor reinvested all of these monies back in the fund, the cost basis of her total investment is:
- Which of the following statements is TRUE regarding the straight life payout option available in a variable annuity?
- Mr. and Mrs. Blue both have full-time jobs and are covered by their employers' pension plans. Mr. Blue's salary is $65,000. Mrs. Blue's salary is $75,000. If they file a joint tax return and each wants to open an IRA:
- An investor owns 1,000 shares of a mutual fund. The offering price is $12 per share. The fund charges a 6% sales charge and has a 1% redemption fee. If the investor redeems his shares, he will receive approximately:
- Which TWO of the following statements are TRUE concerning hedge funds?
- An uncle would like to invest for his nephew's college education. Which of the following factors is a benefit of a 529 plan?
- Under what circumstances will the payout from a variable annuity increase?
- Which TWO of the following choices are advantages of trading exchange-traded funds (ETFs)? They may be purchased on margin Investors can receive breakpoints There is no fee to liquidate shares They may be sold short
- Who is permitted to participate in a tax-sheltered annuity established under Internal Revenue Code Section 403(b)?
- An increase in which of the following choices would cause an increase in the expense ratio for an investment company?
- Which of the following statements about a closed-end investment company is TRUE?
- In reviewing prices for a mutual fund, an investor notices that the Beacon Fund has two listings, one for Class A shares and the other for Class B shares. The distinction between the two classes of shares is most likely that:
- Which of the following statements is NOT TRUE about a Keogh plan?
- Which TWO of the following statements are TRUE regarding the contract holder of a variable annuity?
- Over the last 20 years, Grant Rock, age 66, has invested $200,000 in a tax-qualified annuity sponsored by his employer, Tombstone Enterprises. The account is currently worth $800,000. He decides to annuitize the contract and begin drawing down the contract balance. In the first year he has received $50,000. How will these distributions be taxed?
- The separate account of the variable life policy that Tom Jones bought is performing poorly. Does this have any influence on his death benefit?
- The BG mutual fund has a NAV of $11.72 and a maximum offering price of $12.67. What is the maximum sales charge for this fund?
- Which of the following securities is LEAST appropriate for an IRA account?
- An investor might take advantage of a Section 1035 exchange if:
- Which of the following choices is a type of retirement plan associated with individuals who work for a publicly traded company?
- A client redeems shares of a mutual fund. According to current regulations, a check must be sent within how many days of submitting a redemption notice?
- A registered representative sells shares of a mutual fund to a customer at a dollar amount of $49,500. The RR does not disclose that a reduced sales charge is available at amounts of $50,000 and above. This practice is a(n):
- An advantage of a Coverdell account over a 529 plan is:
- Normally, the largest expense incurred by an open-end investment company is the: