Pass The 65: A PLAIN ENGLISH EXPLANATION TO HELP YOU PASS THE SERIES 65 EXAM - UPDATED FOR 2017

If you’re selling somebody a security, you’re a salesperson/agent. If you’re giving advice, you aren’t selling products—you’re investing the client’s money on the client’s behalf. And you therefore have a fiduciary/trustee relationship with that client, since, basically, they have opened up their purse to you. How many people would you entrust with

If the adviser sponsors a wrap fee program, the adviser must deliver a written disclosure statement (wrap fee brochure) of how these wrap fees work, pointing out that the client may pay more this way than if the services were purchased separately.

Those who use futures to lock in purchase or sale prices related to their businesses are called hedgers. Those who use futures simply to bet on the near-term price movement of a commodity are called speculators.

In a partnership, the income and expenses of the business flow through directly to the owners. The business entity itself, in other words, is not taxed. The percentage of profits and losses flowing through to each of the owners is stated in the partnership agreement.

Broker-dealers, investment advisers, and IARs and agents with discretion may be required to maintain surety bonds in amounts up to $10,000. The test question may point out that this surety bond can be obtained by a cash deposit or a deposit of securities. While the Administrator can rule which type of securities can be used as a deposit, he cannot

Now would be a good time to note the language used in insurance: • Policyholder: the owner of the policy, responsible for paying premiums • Insured: the person whose life is insured by the policy, usually the policyholder • Beneficiary: the party that receives the death benefit upon death of the insured • Death benefit: the amount payable to the be

The adviser’s disclosure brochure must either contain substantially the same information as—or be an actual copy of—ADV Part 2. This part of the form tells customers the essential information on their investment adviser, such as: • Types of securities about which advice is rendered and the types of analyses used to make such recommendations • Servi

An interesting type of fixed annuity is the equity-indexed annuity. With this product, the investor receives a guaranteed minimum rate of return when the stock market has a bad year. But, he/she receives a higher rate of return when an index—usually the S&P 500—has a good year. Do they receive the full upside, as if they owned an S&P 500 in

The Investment Company Act of 1940 requires the investment company itself to register and then lays out an exhaustive array of dos and don’ts for their operations. The Investment Company Act of 1940 classified investment companies as face amount certificate companies, unit investment trusts, or management companies.

If the customer can’t deliver the cash, the firm sells/liquidates securities equal to four times the amount of the maintenance call.