Series 65 Exam Practice Questions

Series 65 Exam Practice Questions
Uniform Investment Adviser

Below you will find some free Series 65 Exam practice questions. As with all of our books and exam content, they’ve been updated for the current test content. The Series 65 practice questions below will give you an idea of the types of questions you will see when taking the real Series 65 Exam. At the end of the practice test, you’ll find an answer key. Good luck…

10 Series 65 Practice Questions

1) All of the following are considered securities EXCEPT:

A. Limited partnerships
B. Commodities
C. Foreign currency options
D. US Government bonds

2) Which of the following are true regarding Real Estate Investment Trusts?

I. They pass through income and losses generated by the properties owned
II. The securities offered by the trust are not redeemable
III. They must invest all of their money into real estate related projects
IV. Their securities offer less liquidity risk than real estate

A. II only
B. II and IV
C. I, III, and IV
D. I, II, III, and IV

3) An adviser has a client whose main objective is preservation of capital. The adviser recommends to the client to invest in mutual funds. However, the client explains that he is concerned about the safety of mutual funds. The adviser explains that all securities are regulated by the SEC and state governments. Which of the following is true?

A. This is a misleading statement since mutual funds do not have to be registered with states
B. This is a misleading statement since the SEC and states do not regulate the safety of investments
C. This is not a misleading statement since the SEC and states regulate securities trading
D. This is not a misleading statement since mutual funds are suitable for preservation of capital

4) All of the following are examples of fundamental factors regarding a company EXCEPT:

I. earnings trends
II. short interest
III. put/call ratio
IV. management of the company

A. I and III
B. I and IV
C. II and III
D. II and IV

5) Which of the following investments provides the greatest real rate of return?

A. A bond yielding 8% when the inflation rate is 3%
B. A bond yielding 11% when the inflation rate is 7%
C. A bond yielding 9% when the inflation rate is 5%
D. A bond yielding 6% when the inflation rate is 2%

When taking the Series 65 Exam, be aware of key words in the questions like EXCEPT and NOT to help keep you from making careless mistakes.

6) A 55-year-old individual has invested $100,000 into a non-qualified variable annuity over several years. The value of the annuity is now $120,000. The individual wishes to withdraw $40,000 from the annuity. If the investor is in the 31% tax bracket, what amount of taxes would the investor owe if making the withdrawal?

A. 0%
B. $6,200
C. $8,200
D. $16,400

7) All of the following are true about a Letter of Intent EXCEPT:

A. It may be backdated for up to 90 days
B. It may not be used by investment clubs
C. It is valid for 13 months
D. Redemptions cannot be made while the letter of intent is in effect

8) Immediate vesting on business contributions is provided in which of the following retirement plans?

A. Keogh plans
B. 401k plans
D. All of the above

9) An individual buys stock for a price of $30 per share. The investor gives the stock to her husband when the price of the stock is $35. If the husband sells the stock when the price is $38, what is the capital gain or loss per share realized by the husband?

A. $3.00
B. $5.00
C. $5.50
D. $8.00

10) Under which of the following circumstances may a registered rep send a research report to a client about a company offering new securities during the cooling off period?

A. If accompanied by a preliminary prospectus
B. If granted approval by a principal
C. Both A and B
D. Neither A nor B

Answer Key: 1) B 2) B 3) B 4) C 5) A 6) C 7) D 8) C 9) D 10) D

Above is just a sampling of Series 65 practice questions. When purchasing our Series 65 Course Textbook, you will not only get the correct answers, but also detailed explanations. All books were created by Steven M. Rice and Rueben Martinez

Series 65 Exam Outline