Get Finra Series-6 Exam Practice Questions - Real and Updated

Answer : D

If Ms. Fortune died at the age of 60 and her beneficiary is her 65-year-old spouse, he can choose to withdraw the entire balance in a single lump sum, continue to make contributions to the IRA as if it were his own, or roll the IRA into another existing IRA. If he opts to withdraw the entire balance in a single lump sum, he will have to pay tax on that distribution at his marginal tax rate.

Answer : B

If Sam sells his neighbor's bonds by calling his existing clients with an offer to sell them the bond, he has engaged in the illegal practice of ''selling away.'' This practice is defined as a broker or agent offering securities for sale that are not owned or offered by his member firm and is in violation of NASD Rule 3040.

Answer : A

The main difference between a SEP-IRA and a SIMPLE IRA is that only employers can contribute to a SEP-IRA whereas both employees and employers can contribute to a SIMPLE IRA. In fact, employers are required to contribute to a SIMPLE IRA on the employee's behalf, even if the employee chooses to make no contributions. The contributions to both plans are tax deductible and both plans have higher contribution limits than those allowed by the traditional IRA and Roth IRA plans.

Answer : A

The false statement is that CMOs are zero-coupon bonds that are backed by real estate. CMOs are not zero-coupon bonds; they make payments that include both interest and principal.

Answer : B

If you sell Hasbro stock for $55 and it was selling for $44 on the day that your uncle died, the sale will result in $3,300 of taxable income, taxed to you as long-term capital gain income. Your cost basis is the price at which the stock was selling on the day your uncle died, $44, so your gain on the sale is ($55 - $44) x 300 shares = $3,300. Although you owned the stock for only a month, the IRS stipulates that capital gain (or loss) earned on the disposition of inherited investment property will be considered to be long-term capital gain, regardless of how long it is held by the beneficiary prior to its sale.