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10 Cards in this Set
- Front
- Back
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When a customer receives payment during the annuity period of a variable annuity, which is true? |
Only the amount that represents investment income is subject to tax |
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A representative with a series 6 license assisted an investor in the purchase of a closed end fund IPO. The client is interested purchasing additional shares that are now being sold on an exchange. The representative may? |
Not assist in the purchase Can not sell secondary market offerings |
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A prospectus must precede or accompany any solicitation, including distribution of sales literature. |
Prospectus |
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The regular way ex-dividend date for cash dividends is the? |
Second business day preceding the record date |
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In which of the following prospectus offerings could a series 6 representative participate? |
Initial public offerings of a closed end company and variable annuities |
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ERISA regulations apply to which of the following? |
Private sector retirement plans |
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A 65 year old woman makes contributions of 13,000 to a non qualified tax deferred annuity. The current value of her account is now 23,000. What is her cost basis for tax purposes? |
13,000 because the plan is not qualified , the amount originally invested was after tax money and constitutes the plans cost basis |
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Which of the following statements describing section 529 plans is true? |
The maximum annual contribution varies from state to state |
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An open investment company that does not distribute at least 90% of its net income ? |
Is liable for federal taxes on its net investment income |
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If a customer works as a nurse in a public school each of the following statements regarding his schools TSA plan are true EXCEPT? |
He is not eligible to participate |
