AWMA EXAM PRACTICE QUESTIONS WITH GUARANTEED ACCURATE ANSWERS |VERIFIED
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Course
AWMA
Institution
AWMA
What are the 4 rules in terms of investing in a small firm? - ACCURATE ANSWERS Time frame of at least 3-5 years, diversify among 20-30 different issues, avoid turnover of 30% annually, and sell if and when 40% of company's shares become owned by institutional investors.
What is a characteristic ...
AWMA EXAM PRACTICE QUESTIONS
AWMA EXAM PRACTICE QUESTIONS WITH GUARANTEED ACCURATE ANSWERS |
VERIFIED
What are the 4 rules in terms of investing in a small firm? - ACCURATE
ANSWERS✔✔ Time frame of at least 3-5 years, diversify among 20-30
different issues, avoid turnover of 30% annually, and sell if and when
40% of company's shares become owned by institutional investors.
What is a characteristic of an unfunded excess benefit plan? -
ACCURATE ANSWERS✔✔ The plan generally need not comply with
either the disclosure or reporting requirements of ERISA.
Unfunded excess benefit plans need not comply with ERISA disclosure
or filing requirements.
What is a correct statement regarding federal transfer taxation of the
transfer of wealth? - ACCURATE ANSWERS✔✔ The generation-
, skipping transfer tax (GSTT) can be applied to transfers of wealth
between parties who are not related to each other.
If the transferor and transferee are not related to each other in any way,
the GSTT can still apply if the transferee is more than 37.5 years
younger than the transferor. The gift tax is tax exclusive. Direct payment
of tuition expenses is exempt from gift tax and GSTT, but is not exempt
from estate tax. The marital deduction merely delays application of the
gift or estate tax until the recipient spouse dies.
According to the investment pyramid, what sequence is correct in terms
of increasing safety of principal (least to most safety of principal)? -
ACCURATE ANSWERS✔✔ *futures contracts, balanced mutual funds,
EE bonds
In terms of increased safety of principal, of the four sequences given, the
investment pyramid in the study materials shows futures contracts (least
safety), balanced mutual funds, EE bonds (most safety with principal
guaranteed by the U.S. government) is the correct sequence.
Three years ago, Kerri received a gift of 1,000 shares of Mica Inc.
common stock from her parents. The fair market value of the stock on
the date of the gift was $20,000. Kerri's parents purchased the stock
several years earlier for $40,000. She sold this stock for $31,000 last
week. What is the amount of gain or loss, if any, from Kerri's stock sale?
- ACCURATE ANSWERS✔✔ $0
Where the fair market value on the date of gift is less than the donor's
adjusted basis, and the asset is sold at a price between the fair market
value on the date of gift and the donor's adjusted basis, there is no gain
or loss recognized on the sale.
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