EXAM REVIEW 2015 -

Definition of Terms INTRODUCTION SECURITY PERSON BROKER DEALER AGENT ISSUER NONISSUER INVESTMENT ADVISER PENSION CONSULTANTS FORM ADV INVESTMENT ADVISER REPRESENTATIVE SOLICITOR INSTITUTIONAL INVESTOR ACCREDITED INVESTOR QUALIFIED PURCHASER PRIVATE INVESTMENT COMPANY OFFER/OFFER TO SELL/OFFER TO BUY SALE/SELL GUARANTEE/GUARANTEED CONTUMACY FEDERALLY COVERED EXEMPTION OPTION CONTRACTS CALL OPTIONS PUT OPTIONS FUTURES AND FORWARDS SECONDARY MARKET ORDERS MARKET ORDERS BUY LIMIT ORDERS SELL LIMIT ORDERS STOP ORDERS/STOP LOSS ORDERS BUY STOP ORDERS SELL STOP ORDERS Securities Industry Rules and Regulations INTRODUCTION THE SECURITIES ACT OF 1933 THE PROSPECTUS THE FINAL PROSPECTUS SEC DISCLAIMER MISREPRESENTATIONS THE SECURITIES EXCHANGE ACT OF 1934 THE SECURITIES AND EXCHANGE COMMISSION (SEC)EXTENSION OF CREDIT PUBLIC UTILITIES HOLDING COMPANY ACT OF 1935 FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)THE TRUST INDENTURE ACT OF 1939 INVESTMENT ADVISERS ACT OF 1940 INVESTMENT COMPANY ACT OF 1940 RETAIL COMMUNICATIONS/COMMUNICATIONS WITH THE PUBLIC FINRA RULE 2210 COMMUNICATIONS WITH THE PUBLIC RETAIL COMMUNICATION INSTITUTIONAL COMMUNICATIONS CORRESPONDENCE BLIND RECRUITING ADS GENERIC ADVERTISING TOMBSTONE ADS TESTIMONIALS FREE SERVICES MISLEADING COMMUNICATIONS SECURITIES INVESTOR PROTECTION CORPORATION ACT OF 1970 (SIPC)NET CAPITAL REQUIREMENT CUSTOMER COVERAGE FIDELITY BOND THE SECURITIES ACTS AMENDMENTS OF 1975 THE INSIDER TRADING AND SECURITIES FRAUD ENFORCEMENT ACT OF 1988 FIREWALL THE TELEPHONE CONSUMER PROTECTION ACT OF 1991 EXEMPTION FROM THE TELEPHONE CONSUMER PROTECTION ACT OF 1991 NATIONAL SECURITIES MARKET IMPROVEMENT ACT OF 1996 THE UNIFORM SECURITIES ACT Economic Fundamentals INTRODUCTION GROSS DOMESTIC PRODUCT EXPANSION PEAK CONTRACTION TROUGH RECESSION DEPRESSION ECONOMIC INDICATORS LEADING INDICATORS COINCIDENT INDICATORS LAGGING INDICATORS ECONOMIC POLICY TOOLS OF THE FEDERAL RESERVE BOARD RESERVE REQUIREMENT CHANGING THE DISCOUNT RATE FEDERAL OPEN MARKET COMMITTEE MONEY SUPPLY M1 M2 M3 DISINTERMEDIATION MORAL SUASION FISCAL POLICY CONSUMER PRICE INDEX (CPI)INFLATION/DEFLATION REAL GDP INTERNATIONAL MONETARY CONSIDERATIONS Customer Recommendations, Professional Conduct, and Taxation INTRODUCTION PROFESSIONAL CONDUCT BY INVESTMENT ADVISERS THE UNIFORM PRUDENT INVESTORS ACT OF 1994 FAIR DEALINGS WITH CLIENTS CHURNING MANIPULATIVE AND DECEPTIVE DEVICES CUSTOMER COMPLAINTS UNAUTHORIZED TRADING FRAUD BLANKET RECOMMENDATIONS ANALYSIS SELLING DIVIDENDS MISREPRESENTATIONS OMITTING MATERIAL FACTS GUARANTEES RECOMMENDING MUTUAL FUNDS PERIODIC PAYMENT PLANS DISCLOSURE OF CLIENT INFORMATION BORROWING AND LENDING MONEY DEVELOPING THE CLIENT PROFILE TYPES OF ADVISORY CLIENTS INVESTMENT OBJECTIVES INCOME GROWTH PRESERVATION OF CAPITAL TAX BENEFITS LIQUIDITY SPECULATION RISK VS. REWARD CAPITAL RISK MARKET RISK NONSYSTEMATIC RISK LEGISLATIVE RISK TIMING RISK CREDIT RISK REINVESTMENT RISK INTEREST RATE RISK CALL RISK OPPORTUNITY RISK LIQUIDITY RISK ALPHA BETA CAPITAL ASSET PRICING MODEL (CAPM)EFFICIENT MARKET THEORY EXPECTED RETURN TIME VALUE OF MONEY NET PRESENT VALUE INTERNAL RATE OF RETURN MODERN PORTFOLIO THEORY FUNDAMENTAL ANALYSIS THE BALANCE SHEET CAPITALIZATION TAX STRUCTURE INVESTMENT TAXATION CALCULATING GAINS AND LOSSES COST BASE OF MULTIPLE PURCHASES FIFO SHARE IDENTIFICATION AVERAGE COST DEDUCTING CAPITAL LOSSES WASH SALES TAXATION OF INTEREST INCOME INHERITED AND GIFTED SECURITIES DONATING SECURITIES TO CHARITY TRUSTS GIFT TAXES ESTATE TAXES WITHHOLDING TAX CORPORATE DIVIDEND EXCLUSION ALTERNATIVE MINIMUM TAX (AMT)TAXES ON FOREIGN SECURITIES Variable Annuities, Retirement Plans, and Life Insurance INTRODUCTION ANNUITIES FIXED ANNUITY VARIABLE ANNUITY DIRECT INVESTMENT INDIRECT INVESTMENT COMBINATION ANNUITY BONUS ANNUITY EQUITY-INDEXED ANNUITIES ANNUITY PURCHASE OPTIONS SINGLE-PAYMENT DEFERRED ANNUITY SINGLE-PAYMENT IMMEDIATE ANNUITY PERIODIC-PAYMENT DEFERRED ANNUITY ACCUMULATION UNITS ANNUITY UNITS ANNUITY PAYOUT OPTIONS LIFE ONLY/STRAIGHT LIFE LIFE WITH PERIOD CERTAIN JOINT WITH LAST SURVIVOR FACTORS AFFECTING THE SIZE OF THE ANNUITY PAYMENT THE ASSUMED INTEREST RATE (AIR)TAXATION SALES CHARGES VARIABLE ANNUITY VS. MUTUAL FUND RETIREMENT PLANS INDIVIDUAL PLANS INDIVIDUAL RETIREMENT ACCOUNTS (IRAs)TRADITIONAL IRA ROTH IRA SIMPLIFIED EMPLOYEE PENSION IRA (SEP IRA)PARTICIPATION EMPLOYER CONTRIBUTIONS SEP IRA TAXATION EDUCATIONAL IRA PLANS LOCAL GOVERNMENT INVESTMENT POOLS (LGIPs)IRA CONTRIBUTIONS IRA ACCOUNTS IRA INVESTMENTS IT IS UNWISE TO PUT A MUNICIPAL BOND IN AN IRA ROLLOVER VS. TRANSFER ROLLOVER TRANSFER DEATH OF AN IRA OWNER KEOGH PLANS (HR-10)CONTRIBUTIONS TAX-SHELTERED ANNUITIES/TAX-DEFERRED ACCOUNT PUBLIC EDUCATIONAL INSTITUTIONS (403B)NONPROFIT ORGANIZATIONS/TAX-EXEMPT ORGANIZATIONS (501C3)CONTRIBUTIONS TAX TREATMENT OF DISTRIBUTIONS CORPORATE PLANS NON-QUALIFIED CORPORATE RETIREMENT PLANS PAYROLL DEDUCTIONS DEFERRED COMPENSATION PLANS QUALIFIED PLANS TYPES OF PLANS DEFINED BENEFIT PLAN DEFINED CONTRIBUTION PLAN EMPLOYEE STOCK OWNERSHIP PLANS/ESOP PROFIT SHARING PLANS (K) THRIFT PLANS ROLLING OVER A PENSION PLAN EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974 (ERISA)PLAN PARTICIPATION INVESTMENT POLICY STATEMENT FUNDING VESTING COMMUNICATION BENEFICIARIES ERISA 404C SAFE HARBOR LIFE INSURANCE WHOLE LIFE VARIABLE LIFE UNIVERSAL LIFE VARIABLE UNIVERSAL LIFE/ UNIVERSAL VARIABLE LIFE PREMIUMS AND DEATH BENEFITS MORTALITY RISK FEE INVESTMENT MANAGEMENT FEE EXPENSE RISK FEE ASSUMED INTEREST RATE VARIABLE POLICY FEATURES -DAY FREE LOOK LOANS CONTRACT EXCHANGE VOTING SALES CHARGES LIFE SETTLEMENTS Registration of Broker Dealers, Investment Advisers, and Agents INTRODUCTION REGISTRATION OF BROKER DEALERS FINANCIAL REQUIREMENTS AGENT REGISTRATION REGISTERING AGENTS CHANGES IN AN AGENT'S EMPLOYMENT MERGERS AND ACQUISITIONS OF FIRMS RENEWING REGISTRATIONS CANADIAN FIRMS AND AGENTS INVESTMENT ADVISER STATE REGISTRATION THE NATIONAL SECURITIES MARKET IMPROVEMENT ACT OF 1996 (THE COORDINATION ACT)INVESTMENT ADVISER REPRESENTATIVE STATE INVESTMENT ADVISER REGISTRATION CAPITAL REQUIREMENTS EXAMS ADVERTISING AND SALES LITERATURE BROCHURE DELIVERY THE ROLE OF THE INVESTMENT ADVISER ADDITIONAL COMPENSATION FOR AN INVESTMENT ADVISER AGENCY CROSS TRANSACTIONS DISCLOSURES BY AN INVESTMENT ADVISER INVESTMENT ADVISER CONTRACTS ADDITIONAL ROLES OF INVESTMENT ADVISERS PRIVATE INVESTMENT COMPANIES/HEDGE FUNDS FULCRUM FEES WRAP ACCOUNTS SOFT DOLLARS Securities Registration, Exempt Securities, and Exempt Transactions INTRODUCTION EXEMPT SECURITIES SECURITIES REGISTRATION REGISTRATION OF IPOs THROUGH COORDINATION REGISTRATION THROUGH NOTICE FILING REGISTRATION OF NONESTABLISHED ISSUERS/ REGISTRATION THROUGH QUALIFICATION EXEMPT SECURITIES/FEDERALLY COVERED EXEMPTION EXEMPT TRANSACTIONS PRIVATE PLACEMENTS/ REGULATION D OFFERINGS PRIVATE INVESTMENT IN A PUBLIC EQUITY (PIPE)RULE 147 INTRASTATE OFFERING REGULATION A OFFERINGS TRANSACTIONS WITH FINANCIAL INSTITUTIONS TRANSACTIONS WITH FIDUCIARIES TRANSACTIONS WITH UNDERWRITERS UNSOLICITED ORDERS TRANSACTIONS IN MORTGAGE-BACKED SECURITIES PLEDGES OFFERS TO EXISTING SECURITIES HOLDERS PREORGANIZATION CERTIFICATES ISOLATED NONISSUER TRANSACTIONS NONISSUER TRANSACTIONS State Securities Administrators and the Uniform Securities Act INTRODUCTION ACTIONS BY THE STATE SECURITIES ADMINISTRATOR CANCELLATION OF A REGISTRATION WITHDRAWAL OF A REGISTRATION ACTIONS AGAINST AN ISSUER OF SECURITIES RULE CHANGES ADMINISTRATIVE ORDERS INTERPRETIVE OPINIONS ADMINISTRATIVE RECORDS INVESTIGATIONS CIVIL AND CRIMINAL PENALTIES JURISDICTION OF THE STATE SECURITIES ADMINISTRATOR ADMINISTRATOR'S JURISDICTION OVER SECURITIES TRANSACTIONS RIGHT OF RESCISSION STATUTE OF LIMITATIONS