Busy. Please wait.
Log in with Clever

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever

Username is available taken
show password

Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Didn't know it?
click below
Knew it?
click below
Don't Know
Remaining cards (0)
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Series 6 A


Alternative Minimum Tax (AMT) The requirement to add the income from tax preference items to income above an indexed level. A method to insure that wealthy persons and corporations pay at least some tax.
Cost basis The price paid for assets, including any commissions or fees, used to calculate capital gains or losses when the assets is sold
Capital loss The loss incurred when a capital asset is sold for a lower price than the purchase price.
FIFO An accounting method used to assess a company's inventory, in which it is assumed that the first goods acquired are the first to be sold. The same method is used by the IRS to determine cost basis for tax purposes.
Earn income Income derived from active participation in a trade or business, including wages, salary, tips, commissions and bonuses
Gifted vs Inherited Securities
LIFO (Last in, last out) An accounting method used to assess a company's inventory, in which it is assumed that the assumed that the last goods acquired are the first to be sold. The method used to determine cost basis for tax purposes;
LIFO (Last in, last out) Continued the IRS designates last in, first out as the order in which sales or withdrawals from an investment are made.
Investment Income
Marginal Tax rate
Ordinary Income Earnings other than capital gain.
Preferential rates
Rollover The transfer of funds from one qualified retirement plan to another qualified retirement plan. If this is not done with in a specific time , the funds are taxed as ordinary income.
Specified identification method
Trustee to Trustee transfer
Unrealized Gain Amount by which a security appreciates in value before it is sold. Until it is sold, the investor does not actually possess the sale proceeds.
Wash sales rule Selling a security at a loss for tax purposes and, within 30 days before or after, purchasing the same or a substantially identical security. The IRS disallows the claimed loss.
Short term gains Taxed as Ordinary income
Corporate bond taxation Taxable as ordinary income in year received: federal, state, local.
US Government Debt Taxation: Federally taxable as ordinary income in the year received: Exempt from state and local taxes.
Mutual Fund dividends Taxed as ordinary income whether reinvested or not
Short term capital gains distributions Taxed as ordinary income whether reinvested or not.
100% distributions from a qualified plan Taxed as ordinary income.
Only the earnings from a non-qualified plan Taxed as ordinary income - cost basis returned tax-free
Long term capital gain Taxed at a Maximum rate of 15%
Capital gains from the sale of inherited securities Taxed at a Maximum rate of 15%
Common stock cash dividends Taxed at a Maximum rate of 15%
Long term capital gains distributions whether reinvested or not Taxed at a Maximum rate of 15%
Stock dividends on stock: Not taxed upon, cost basis is adjusted and taxable upon sale. Tax-free
Municipal bond interest: Exempt from federal taxation may be subject to state and local taxation. Tax-free
Qualified distributions from a Roth IRAs Tax-free
Distribution from a Coverdell or 529 Plan used for qualified educational expenses Tax-free
Life insurance death benefit to beneficiary( subject to estate tax) Tax-free
8AM to 9PM (customer's time zone) Time constraints imposed by the Telephone Consumer Protection Act 1940
Daily Frequency of NAV calculation for mutual fund and variable contracts (business days only)
T+1 Settlement for options and treasury trades.
T+3 Settlement for municipal and corporate securities
T+5 Regulation T payment date
7 calendar days Maximum time period for redemption of mutual fund shares.
within 10 days of first use Time period for filing investment company ads and sales literature with FINRA
20 days SEC "cooling off period" for new issues
Monthly Variable contract cash values calculated on this basis
30 days Minimum waiting period for candidates who fail the Series 6 for the first or second time
45 days Free look provision on variable contracts
60 days Maximum time period to complete an IRA rollover
61 days Size of wash sale window
90 days Maximum allowable period to backdate a letter of intent
90 days Time period an account is "frozen"
120 days Maximum time and RR has to complete the regulatory element of CE after his or her two-year anniversary
180 days Minimum waiting period for Series 6 candidates who fail of 3rd or later attempts
Semiannually Minimum requirement for investment companies(ICs) to send reports to shareholders
270 days Maximum maturity for commercial paper and banker's acceptance
1 year Maximum maturity of a T-bill
Annually Minimum requirement for IC reporting to SEC
Annually Variable contract death benefit calculated on this basis
13 months Maximum time frame to complete a letter of intent (LOI)
16 months Maximum shelf life of a prospectus
2 years Maximum time to convert a variable life policy to a whole life policy
2 years Registered representatives (RRs) who leave the business longer than this period must retest.
2 years Maximum length of initial investment advisory contract
5 years Required holding period for a qualified (tax-free) distribution form a Roth IRA
10 years Maximum time period associated with statutory disqualification
10 years Maximum maturity of a T-Note
20 years Maximum jail term for insider trading violation
30 years Maximum maturity of a T-bond
59.5 years Minimum age to begin taking retirement plan distribution without penalty
70.5 years Age at which required minimum distributions from retirement plans must begin
.01% Value of a basis point
.25% Maximum 12b-1 fee that may be levied by a no load fund
6% Tax penalty on excess IRA contributions
8.5% Maximum sales charge allowed under FINRA rules on a single purchase of investment company securities
9% Maximum sales charged that may be levied over the life of a contractual plan
10% Penalty for early withdrawal (under 59.5) from retirement plan
12% Maximum interest rate that may be used in a illustration for variable life contracts
15% Maximum tax rate assessed against long-term capital gains
15% Preferential rates for cash dividends on stock
16% Maximum average annual sales charge that may be levied in a spread load plan (1970) over the first 4 years
20% Maximum annual sales charge that may be levied in a spread load plan
50% Failure to take required minimum distribution (RMD) tax penalty on traditional IRAs
50% Maximum sales charge that may be levied in year one of a front load plan (1940)
70% Minimum score needed to pass the Series 6 exam
75% Minimum percentage of the Board of Directors (BOD) that must be disinterested
90% Minimum distribution of net investment income fir a regulated investment company
300% Minimum asset to debt coverage ratio for an investment company engaged in bank borrowing
1% 100 basis point, 100BPs
American Depository receipts (ADR) also called American Depository Shares
Annual return also called Holding period return
Ask also called Offer
Authorized stock also called New Stock
B shares also called Back end load
Back end sales charge also called Contingent deferred sales charge (CDSD)
Bondholder also called Creditor
Broker also called Agent
Created by: coderman
Popular Finance sets




Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
restart all cards