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

R-squared is a statistical measurement that tries to explain how much of a portfolio’s movement is explained by the movement in the benchmark index. For a fixed-income portfolio, T-Bills can serve as a benchmark. For stocks, the S&P 500 provides a useful benchmark. The values are from 0 to 100. If the R-squared value is 100, that means that 100

They then created an account that is separate from the general account and, believe it or not, decided to name it the separate account. It’s really a mutual fund family that offers tax deferral, but we don’t call it a mutual fund, even though it’s also covered by and registered under the same Investment Company Act of 1940.

What if Grandma decided to give you the stock while she’s still alive? In that case you would take her original cost basis of $10.

Remember that alpha takes the volatility or price risk of an investment and compares its risk-adjusted performance to the benchmark that the investment most closely matches. Beta measures systematic risk, showing how much a security or portfolio moves compared to the overall market.

If your marginal tax rate is 25%, 33%, or 35%, you pay only 15% on qualified dividends. But, check this out—if your tax bracket is lower than 25%, the tax you pay on qualified dividends is zero percent.

If you want to move your IRA from one custodian to another, your best bet is to do a direct transfer. Just have the custodian cut a check to the new custodian, nice and simple. You can do as many of these direct transfers as you want. If, however, you do a rollover, things get tricky. First, you can only do one per year, and, second, it must be com

STRIPS present a peculiar tax problem called “phantom tax exposure.” That means that even though interest income is not received until the STRIP matures, the investor pays tax on the amount of annual interest that has been added to the value of the security each year. A test question, might, therefore, point out that a STRIP or other taxable zero c

the following are not securities and are not being regulated by the Uniform Securities Act: • Fixed annuity • Whole life insurance, term life insurance, universal life insurance, endowment policy • Commodity futures contract

A limited liability company (LLC) is a type of business ownership in which the owners are called “members” and the ones who also manage the business are called “managing members.” In a minute, we will see that the S-corp. is limited to 100 shareholders, while the LLC has no limit on the number of members, who can be individuals, corporations, or ev