Valid SIE Dumps shared by ExamDiscuss.com for Helping Passing SIE Exam! ExamDiscuss.com now offer the newest SIE exam dumps, the ExamDiscuss.com SIE exam questions have been updated and answers have been corrected get the newest ExamDiscuss.com SIE dumps with Test Engine here:
Access SIE Dumps Premium Version
(166 Q&As Dumps, 35%OFF Special Discount Code: freecram)
<< Prev Question Next Question >>
Question 43/80
An investor wants to purchase mutual fund shares, but she is concerned about the tax efficiency of the fund.
Which of the following disclosures required under industry regulations will help the investor make an informed decision?
Which of the following disclosures required under industry regulations will help the investor make an informed decision?
Correct Answer: A
Step by Step Explanation:
* Turnover Ratio: Indicates how frequently the fund manager buys and sells securities. A high turnover ratio may result in higher capital gains distributions, impacting tax efficiency.
* Incorrect Options:
* B: Sales charges affect cost but not tax efficiency.
* C: Commission details are unrelated to the fund's tax efficiency.
* D: Projections of distributions are speculative and not disclosed under regulations.
References:
* SEC Mutual Fund Guide: SEC Mutual Funds.
* Turnover Ratio: Indicates how frequently the fund manager buys and sells securities. A high turnover ratio may result in higher capital gains distributions, impacting tax efficiency.
* Incorrect Options:
* B: Sales charges affect cost but not tax efficiency.
* C: Commission details are unrelated to the fund's tax efficiency.
* D: Projections of distributions are speculative and not disclosed under regulations.
References:
* SEC Mutual Fund Guide: SEC Mutual Funds.
- Question List (80q)
- Question 1: A registered representative (RR) receives a mutual fund orde...
- Question 2: An investor sells shares of a closed-end fund at the market....
- Question 3: Which of the following is a reportable obligation with respe...
- Question 4: Which of the following statements is true of an index exchan...
- Question 5: Which of the following responses best describes a short sale...
- Question 6: An investor holds 1,000 shares of a stock with a total cost ...
- Question 7: Which of the following transactions gives a U.S. citizen the...
- Question 8: An investor is bullish on the technology sector and heavily ...
- Question 9: Which of the following entities settles broker-to-broker equ...
- Question 10: Which of the following disclosures is a municipal securities...
- Question 11: The civil penalty for an individual who is convicted of an i...
- Question 12: Which of the following is the primary risk of using asset al...
- Question 13: A customer owns 100 shares of ABC with a current market valu...
- Question 14: Company ABC stock currently trades on an exchange. An ABC in...
- Question 15: An individual investor has $300,000 in cash and $400,000 in ...
- Question 16: What is the sales load of an open-end investment company wit...
- Question 17: The formation of an asset-backed security or debt obligation...
- Question 18: When is it permissible to exercise European-style options co...
- Question 19: Which of the following listed securities carries voting righ...
- Question 20: Class A and Class C shares of a mutual fund differ in which ...
- Question 21: SIPC provides investor protection for its members' customers...
- Question 22: A rating agency downgrades a corporation's credit rating. Wh...
- Question 23: A customer buys 100 ABC at $50 and at the same time sells an...
- Question 24: Which of the following securities has the greatest investmen...
- Question 25: Which of the following strategies is an investor most likely...
- Question 26: Under SEC Regulation D, which of the following parties is co...
- Question 27: A customer purchased 100 shares of Company XYZ common stock ...
- Question 28: Which of the following responses best describes how member f...
- Question 29: How long are unused funds permitted to remain in a Coverdell...
- Question 30: A customer purchases $3,000 of XYZ, which settles today in a...
- Question 31: When is a newly registered person subject to the Continuing ...
- Question 32: A market maker quotes the market on an NMS equity security a...
- Question 33: A customer purchased $80,000 of Fund XYZ two years ago. He n...
- Question 34: On settlement date, a customer is unable to pay for a purcha...
- Question 35: Rising economic activity is most likely to increase revenues...
- Question 36: If an investor is bullish on ABC, which of the following act...
- Question 37: Which of the following statements is true about a corporatio...
- Question 38: Which of the following statements describes a characteristic...
- Question 39: A customer wants to open an account to trade covered calls a...
- Question 40: SEC Regulation S-P (Consumer Privacy) requires certain infor...
- Question 41: Company XYZ is a U.S.-based provider of domestic utility ser...
- Question 42: A currency devaluation impacts a country's economic activity...
- Question 43: An investor wants to purchase mutual fund shares, but she is...
- Question 44: A bond with a par value of $1,000 that is backed by the taxi...
- Question 45: Which of the following statements concerning nonqualified de...
- Question 46: A market maker quotes the market on an NMS equity security a...
- Question 47: A customer will be out of the country for the next two month...
- Question 48: A registered representative (RR) owns 500 shares of a thinly...
- Question 49: Which of the following responses describes a common feature ...
- Question 50: Which of the following activities is a responsibility of a m...
- Question 51: Pursuant to the Securities Act of 1933, registration is requ...
- Question 52: For a customer thinking about purchasing a high-income bond ...
- Question 53: Beta coefficient is a measure of:...
- Question 54: Which of the following statements is true with regard to SIP...
- Question 55: Which of the following is not a pass-through entity for tax ...
- Question 56: A customer has a stock position that has increased in value ...
- Question 57: A registered representative (RR) has a referral relationship...
- Question 58: The cash value of a variable life insurance policy is affect...
- Question 59: When are registered persons required to fulfill their Contin...
- Question 60: Which of the following rates is the interest rate at which b...
- Question 61: Which of the following terms describes an offer to purchase ...
- Question 62: Which of the following statements is true regarding 529 savi...
- Question 63: A broker-dealer (BD) creates a marketing postcard that inclu...
- Question 64: Which of the following responses best describes the primary ...
- Question 65: Which of the following risks are associated with Treasury se...
- Question 66: Under SEC Regulation A, which of the following market partic...
- Question 67: Under which of the following circumstances, if any, is it pe...
- Question 68: Which of the following responses describes a collateralized ...
- Question 69: Company XYZ files a registration statement for its initial p...
- Question 70: A customer wants to establish an account for the benefit of ...
- Question 71: Assume that the economy is operating at nearly full capacity...
- Question 72: Offering 403(b) tax-sheltered annuity accounts to which of t...
- Question 73: A registered representative (RR) opens a new account for a c...
- Question 74: Which of the following security types is frequently offered ...
- Question 75: Which of the following is considered nonpublic information?...
- Question 76: The process in which the buying firm must pay for the securi...
- Question 77: Which of the following statements best describes an American...
- Question 78: A summary prospectus for a mutual fund must contain which of...
- Question 79: A confirmation indicates a 100-share purchase of Company ABC...
- Question 80: Publicly traded limited partnership interests are typically ...
