QUESTION: 93

Which of the following retirement plans requires the employer to match employee contributions in accordance with specific guidelines?

401(k) plans
SIMPLE IRAs
Section 457 plans
both A and B

Answer(s): B

Explanation:

The retirement plan that requires the employer to match employee contributions in accordance with specific guidelines is the SIMPLE IRA. SIMPLE is an acronym for Savings Incentive Match Plans for Employees. Although some employers offer some sort of matching contribution to 401(k) participants, it is not required that they do so. A Section 457 plan is a deferred compensation plan.

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QUESTION: 94

Giant Investments mass mails a single-page, glossy flyer that lists the types of mutual funds it offers, along with a general explanation of what the investment objective of each type of fund is. The flyer also prominently provides Giant's contact information. Given these facts:

Giant Investments must submit a copy of this brochure within 10 days of its initial distribution date to FINR
a principal of Giant Investments must sign (or initial) and date the brochure, giving it his official approval.
the brochure will be subject to spot checks by FINRA and will need to be kept on file.
None of the above statements is true.

Answer(s): D

Explanation:

Given the facts about the content of the flyer, none of the statements is true. If Giant Investments mass mails a flyer that only lists the types of mutual funds it offers along with a general explanation of what the investment objective of each type of fund is and Giant's contact information, it has issued only a generic advertisement as defined by Rule 135A of the Securities Act of 1933. As such, it is not considered an offer to sell and does not have to meet the requirements to which more specific advertising material is subject.

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QUESTION: 95

On Monday, August 2nd, the Board of Directors of Baldor Electric (BEZ) announced that the firm would pay a dividend of $0.17 a share. Payment will be made on Friday, October 8th to shareholders of record as of Friday, September 17th.
In order to receive this dividend check, an investor would have to purchase shares of Baldor Electric before which day?

Monday, August 2nd.
Wednesday, September 15th.
Friday, September 17th.
Friday, October 8th.

Answer(s): B

Explanation:

In order to receive the dividend check, an investor would have to purchase shares of Baldor Electric before Wednesday, September 15th, the ex-dividend date. The ex-dividend date of a stock is two business days prior to the date of record.

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QUESTION: 96

Which of the following correctly describes how the holding period of a security is calculated when determining whether its sale will result in a short-term or a long-term capital gain?

The holding period begins the day after the buy order is submitted and ends the day the sell order is submitted.
The holding period begins on the settlement day of the purchase and ends on the settlement day associated with the sale.
The holding period begins on the settlement day of the purchase and ends on the day the sell order is submitted.
The holding period begins on the settlement day of the purchase and ends on the day the sell order is submitted.

Answer(s): A

Explanation:

In determining whether its sale will result in a short-term or long-term capital gain, the holding period of a security begins the day after the buy order is submitted and ends the day the sell order is submitted.

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Free Series 6 Exam Braindumps (page: 24)

QUESTION: 93

Explanation:

QUESTION: 94

Explanation:

QUESTION: 95

Explanation:

QUESTION: 96

Explanation: