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SIE Exam Lesson 21 Unit Investment Trust Quiz Questions covered include 1. It is a specific portfolio of bonds that is self-liquidating. 2. The unit investment trust is regulated by the Investment Company Act of 1940. 3. What is the implication of a unit investment trust being self-liquidating? 4. Which of the following is true about a unit investment trust which invests in fixed income investments? 5. A fixed income unit investment trust differs from an open-end mutual fund in such a way that ___. 6. A unit investment trust does not expand nor contract in size once issued. 7. Unit investment trusts can invest in ___. 8. The shares of beneficial interest in a unit investment trust can be redeemed prior to maturity. 9. A unit investment trust that invests in a master limited partnership will receive a ___ at the end of the year. 10. A trust invests in a closed-end fund. The fund’s net asset value is $28.74. It currently trades at $29.03. What is the percentage of the premium? 11. It is a unit investment trust used to fund variable annuities. 12. In a fixed income unit investment trust, if any of the bonds in the fund default, the principal that the investor would be getting back would ___. 13. A unit investment trust that invests in US government bonds that is held in maturity is NOT subject to ___. 14. What is the advantage of buying a unit investment trust that strictly invests in a master limited partnership (compared with a unit investment trust that invests in closed-end funds that invest in the same master limited partnership)? 15. These are risk-free investments. 16. When a unit investment trust closes, the investor can ___. 17. Rolling over into the next unit investment trust is a non-taxable event. 18. It is taking the proportion of the securities held in the trust when the unit investment trust closes. 19. The intention to receive in-kind distribution when the unit investment trust closes must be made known to the trust at least ___ days before the termination of the trust. 20. A large enough position is required before an investor can opt to receive in-kind distribution when the unit investment trust closes. We hope you did well on this SIE Exam Lesson 21 Unit Investment Trust Quiz 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 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 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.. 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. 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 ————————— 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. “Securities Industry Essentials (SIE) Exam https://www.finra.org/sites/default/files/Series_7_Content_Outline.pdf
This is a SIE Exam Lesson 21 Unit Investment Trust Quiz , See how you do if you need help listen to the lesson over.
A. unit investment trust
B. open-end mutual fund
C. closed-end mutual fund
D. hedge fund
A. True
B. False
A. The investor will get back over time the principal plus interest.
B. The net asset value of the trust is independent from the market value.
C. The trust is free from ownership risk.
D. There is a constant interest rate until the trust’s maturity.
(Select all that apply.)
A. Buying the trust is buying shares of beneficial interest.
B. Holding the unit investment trust to its maturity returns the investment (assuming no defaults).
C. If the trust is sold prior to maturity, it has more interest rate risk than other fixed income portfolio.
D. Unlike a bond, this trust is a fixed portfolio.
(Select all that apply.)
A. A fixed income unit investment trust is self-liquidating; an open-end mutual fund is not.
B. An open-end mutual fund has breakpoints; a fixed income unit investment trust has none.
C. An open-end mutual fund is perpetual; a fixed income unit investment trust is not.
D. An open-end mutual fund pays a little, if any, management fee; a fixed income unit investment trust pays very high management fees.
A. True
B. False
(Select all that apply.)
A. closed-end funds
B. corporate bonds
C. government securities
D. equities
A. True
B. False
A. 1099-DIV
B. 1601F
C. CF-213
D. K-1
A. 0.01%
B. 0.09%
C. 0.99%
D. 1%
A. fixed income unit investment trust
B. municipal bond unit investment trust
C. participating unit investment trust
D. stock unit investment trust
A. increase
B. decrease
C. remain the same
D. be equal to the market value
A. credit worthiness risk
B. currency risk
C. interest rate risk
D. principal risk
(Select all that apply.)
A. It avoids paying several management fees.
B. It can generate more income because the management fees are lower.
C. It has lower interest rate risk.
D. It receives the simpler 1099-DIV at the end of the year.
A. direct government securities
B. closed-end funds
C. unit investment trusts
D. treasury bonds
(Select all that apply.)
A. get the proportion of the securities held in the trust
B. roll it over into the next unit investment trust
C. sell the shares
D. take a liquidation
A. True
B. False
A. calling off
B. in-kind distribution
C. liquidation
D. rolling over
A. 7
B. 15
C. 30
D. 60
A. True
B. False
Total Course 37 hours 10 MinThe full course details:
37 hours 10 Min of audio instruction to help you prepare for the Securities Industry Essentials ExamNew Series 7 Exam and SIE Exam details.
https://www.finra.org/industry/essentials-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
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”
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https://www.finra.org/industry/essentials-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/series7Here is what my customers say about my audio lessons
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