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SIE Exam Lesson 17 Investment Company Act of 1940 Quiz
SIE Exam Lesson 17 Investment Company Act of 1940 Quiz
This is a SIE Exam Lesson 17 Investment Company Act of 1940 Quiz, See how you do if you need help listen to the lesson over.
Questions covered include
1. Which of the following does the Investment Company Act of 1940 regulate?
(Select all that apply.)
A. open-end mutual funds
B. closed-end mutual funds
C. unit investment trusts
D. face-amount certificate companies
2. A hedge fund is regulated by the Investment Company Act of 1940.
A. True
B. False
3. Which of the following is an obsolete investment?
A. closed-end mutual fund
B. face-amount certificate
C. open-end mutual fund
D. unit investment trust
4. Which of the following is NOT a characteristic of a face-amount certificate?
A. At the end of the maturity date, its investor would have a lump sum that is greater than the money he/she put in.
B. It has a fixed maturity date.
C. Its investor should pay a specific amount of money on a quarterly basis.
D. The money put on it is invested in very high quality securities.
5. These were used back then as guarantee when there was no mortgage yet and a bank makes a loan to an individual (i.e. to buy a house).
A. closed-end mutual fund
B. face-amount certificate
C. open-end mutual fund
D. unit investment trust
6. Open-end and closed-end mutual funds are run by ___.
A. face-amount certificate companies
B. hedge fund companies
C. investment management companies
D. investment trust companies
7. A closed-end fund is very similar to a new issue on a stock.
A. True
B. False
8. An open-end fund is a mutual fund where you buy an interest in a pool of securities at ___.
A. net asset value
B. net asset value plus interest rate
C. net asset value plus sales charge
D. sales charge
9. The net asset value of an open-end fund is calculated ___.
A. everyday
B. every three business days
C. every week
D. every month
10. The net asset value of an open-end fund is the investor’s proportional interest in a basket of securities that are held by the mutual fund.
A. True
B. False
11. A unit investment trust has fixed portfolio for a specific set of time for a specific time period.
A. True
B. False
12. Which of the following is true about variable annuity?
A. It is a retirement investment plan.
B. It is invested in a fixed income investment portfolio.
C. It provides a fixed return.
D. all of the above
We hope you did well on this SIE Exam Lesson 17 Investment Company Act of 1940 Quiz
Total Course 37 hours 10 Min
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
The full course details:
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials Exam
59 Audio Lessons for Securities Industry Essentials Exam
13 Bonus Lessons about the finance industry
Securities Industry Essentials Exam Podcast Audio Lessons for the SIE Exam
New Series 7 Exam and SIE Exam details.
All candidates now must now pass both the SIE exam (securities industry essentials exam) as well as the New Top-Off Series 7 Exam. A Series 7 candidate must also have an industry sponsor in order to take the examination to take the SIE Exam the candidate simply needs to be 18 years old and no broker affiliation is needed..
https://www.finra.org/industry/essentials-exam
- “Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
New Series 7 Exam
The New Series 7 Content Outline provides a comprehensive guide to the range of topics covered on the exam, as well as the depth of knowledge required. The outline is comprised of the four main job functions of a general securities representative. The table below lists the allocation of exam questions for each main job function.
Major Job Functions Percentage of Test Questions Number of Test Questions
(F1) Seeks Business for the Broker-Dealer from Customers and Potential Customers 7% 9
(F2) Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives 9% 11
(F3) Provides Customers with Information about Investments, Makes Suitable Recommendations, Transfers Assets and Maintains Appropriate Records 73% 91
(F4) Obtains and Verifies Customers’ Purchase and Sales Instructions and Agreements; Processes, Completes, and Confirms Transactions 11% 14
TOTAL 100% 125”
The five job functions of the new Series 7 General Securities Representative Exam will be:
“Seeks business for the broker-dealer through customers and potential customers”
“Evaluates customers’ financial status, financial needs and risk tolerance, and helps them identify their investment objectives”
“Opens accounts, transfers assets and maintains appropriate account records”
“Provides customers with information on investments and makes suitable recommendations”
“Obtains and verifies customer’s purchase and sales instructions, enters orders and follows up”
These five functions of the new series 7 exam are the same or substantially similar to ones on the current Series 7 exam. A notable change from the existing Series 7 exam is the addition of evaluating customer “risk tolerance.”
https://www.finra.org/industry/series7
Here is a link to the table of Contents
Here is what my customers say about my audio lessons
Testimonials
—————————
New Series 7 Exam and SIE Exam details.
FINRA has announced major changes to the Series 7 Exam effective October 1, 2018. With the introduction of the Securities Industries Essentials Exam (SIE Exam) the new series 7 has been pared down to 125 questions from its original 250 questions.
https://www.finra.org/industry/series7
However there is now a prerequisite before taking the new Series 7 Exam all candidates now must have passed the SIE exam (securities industry essentials exam). In addition thing a series 7 candidate must also have an industry sponsor in order to take the examination.
https://www.finra.org/industry/essentials-exam
“Securities Industry Essentials (SIE) Exam
Available Beginning October 1, 2018
The Securities Industry Essentials (SIE or Essentials) Exam, available beginning October 1, 2018, is a new FINRA exam for prospective securities industry professionals. This introductory-level exam assesses a candidate’s knowledge of basic securities industry information including concepts fundamental to working in the industry, such as types of products and their risks; the structure of the securities industry markets, regulatory agencies and their functions; and prohibited practices.
Key Features of the Essentials Exam
________________________________________
• The Essentials exam is open to anyone aged 18 or older, including students and prospective candidates interested in demonstrating basic industry knowledge to potential employers.
• Association with a firm is not required, and individuals are permitted to take the exam before or after associating with a firm.
• Essentials exam results are valid for four years.
The Essentials Exam at a Glance
________________________________________
Number of Items 75
Format Multiple Choice
Duration 105 minutes
Passing Score 70%
Cost $60”
Outline of SIE Exam:
https://www.finra.org/sites/default/files/SIE%20Outline-01.12.18.pdf
https://www.finra.org/industry/series7
https://www.finra.org/sites/default/files/Series_7_Content_Outline.pdf