Prudent investor rule - Study guides, Class notes & Summaries

CRPC Chapter 9 Test Questions with Correct Answers Prudent Investor Rule - Answer-Updated in the Uniform Prudent Investor Act of 1994 Any investment as part of total portfolio Risk vs return No categorical restrictions on types of investments Diversify investments Delegation of trust Inv and management functions Detailed records - Answer-Recommendation and decision All data from client- need to have to make sure looking out for best interest of client Fiduciary as defined b...

A firm must give a customer----days to implement any opt-out provision in the privacy notice correct answers 30 Settlement Date correct answers the buyer delivers the cash and the seller delivers the securities. Commissions must be disclosed on what statement? correct answers On the confirmation in the case of an agency transaction Representatives participating in chat rooms should treat such communication as correct answers Public forum or speaking engagement If customer fails to pr...

PRE14A (preliminary proxy) correct answers must be filed with the SEC at least 10 calendar days prior to filing a definitive proxy with the SEC (DEF 14A) Preliminary proxies can be kept from public disclosure until they become definitive, but only if they adhere to certain rules. They must be marked confidential and public communication must have been limited to a basic Rule 135 announcement. Confidentiality is not allowed in going private and rollup transactions. DEF 14A (definitive proxy) ...

The rule addressing the required disclosures to investors in a corporate transaction is known as correct answers Regulation M-A. Regulation M-A requires investors to receive a summary terms sheet with a series of plain English disclosures regarding the proposed transaction. It applies to issuer tender offers and certain going-private transactions. Net new shares under treasury stock method correct answers = number of shares to which option holders are entitled * (mkt price - exercise price / ...

Principle of Substitution - correct answer a prudent buyer will pay no more for a property than it would cost to acquire a substitute property with the same utility How is a Fairness Opinion different than a FMV? - correct answer A Fairness Opinion goes further than a FMV by assessing whether a transaction is fair between all ownership entities. It also serves as an insurance policy for the transacting parties. Which two valuation methods are based on the principle of substitution? - corre...

Life and Health Insurance Cliff Notes 100% Pass Multi-line insurer - Correct Answer ️️ -An insurance company selling more than one line of insurance Commercial Insurers - Correct Answer ️️ -are in the business of selling insurance for a profit. Commercial insurance is divided into two main groups: stock and mutual insurers. Lloyd's of London - Correct Answer ️️ -is not an insurance company. Members of the association form syndicates to underwrite and issue insurance- like cove...

Life and Health Insurance Cliff Notes 100% Pass Multi-line insurer - Correct Answer ️️ -An insurance company selling more than one line of insurance Commercial Insurers - Correct Answer ️️ -are in the business of selling insurance for a profit. Commercial insurance is divided into two main groups: stock and mutual insurers. Lloyd's of London - Correct Answer ️️ -is not an insurance company. Members of the association form syndicates to underwrite and issue insurance- like cove...

Life and Health Insurance Verified Multi-line insurer ️An insurance company selling more than one line of insurance Commercial Insurers ️are in the business of selling insurance for a profit. Commercial insurance is divided into two main groups: stock and mutual insurers. Lloyd's of London ️is not an insurance company. Members of the association form syndicates to underwrite and issue insurance- like coverage. This is a group of investors who share in unusual risk. Risk reten...

CTFA - Fiduciary & Trust Activities Questions with complete Answers 2023 Constructive Trusts A fraud rectifying trust, imposed by a court to protect those who lose property to a wrongdoer Resulting Trust An intent enforcing trust based upon the presumed intent of a transferor of property Implied Trust An implied trust is an element of trust law, and refers to a trust that has not been "expressly created by the settlor."[1] There are two types of implied trust: Construc...

A 68 year-old client of yours indicates that he is interested in changing the portfolio mix of his IRA to become largely invested in noninvestment grade bonds. You would probably infer from this that the client: - ANSWER-A) has insufficient retirement savings. Most studies have indicated that seniors with insufficient retirement savings attempt to compensate by being tempted to reach for higher yields to maximize retirement income without full consideration of the increased risk that comes a...