FIN 9781 MARGIN ACCOUNTS (Economics) SERIES 7 EXAM QUESTIONS AND ANSWERS RATED A.

FIN 9781 MARGIN ACCOUNTS (Economics) SERIES 7 EXAM QUESTIONS AND ANSWERS RATED A.
Securities can be gifted to charity and deducted at, if
Verified Answer -their fair market value, as long as they have been held
more than 1 year. The fair market value of the deduction allowed for 200
shares is 200 multiplied by the current market price of the stock, or
$18,000.
Original issue discounts are
Verified Answer -accreted, which allows for a step-up in cost basis.
Accretion on original issue discount municipal bonds is not taxed.
The scale, or reoffering scale, represents the
Verified Answer -prices and/or yields at which new issue securities are
offered for sale to the public by the underwriter. The syndicate uses this
scale to determine its bid on the issue.
Call options are in-the-money whenever the
Verified Answer -market price of the stock is greater than the strike price.
If a withdrawal from a Roth IRA is a qualified distribution, the withdrawal
is
Verified Answer -tax free, A qualified distribution is made after a 5-year
holding period and after the taxpayer has reached age 59½.