Across
- 1. An investment company may not issue securities to the public unless it has at least __________ thousand dollars in net assets
- 5. When using dollar cost averaging, if the market price of shares is down, _____ shares will be purchased
- 6. Back-end loads are known as ___________ deferred sales loads where the investor will not pay a chare until shares are redeemed
- 8. This type of fund is said to provide broad market exposure, low operating expenses, and low portfolio turnover.
- 11. If a fund charges a 12b-1 fee, a simple majority of the board must be made up of __________ persons
- 12. For front-end loaded shares, the price for investors is NAV plus ____________
- 15. ________ investment income is the source of an investment company’s dividend payments
- 16. When a shareholder passes away, his shares are assigned a cost basis _________ to the value of the shares on the date of death
- 18. NII = dividends + interest – ________ of the fund
- 20. Mutual funds with a back-end load are called ________ shares
- 21. This word is used to describe bond issued or guaranteed by U.S. federal government agencies and bonds issued by government-sponsored enterprises.
- 23. A ________ period is a period of time where, if shares are sold, an investor may lose the guarantee on the shares and could lose money if the share price has fallen since the initial investment
- 26. Principal-protected mutual funds have higher _________ compared to comparable mutual funds
- 28. This rate on an index annuity will limit the amount that’s credited to the accumulation account. For example, an index annuity with a 7% _____ will only allow 7% credit no matter how much the stock index has gained.
- 29. Whom assumes the risk in a fixed annuity?
- 34. Dividends and capital gains are distributed to investors in ________
- 37. This type of mutual fund is sold without a commission or sales charge. This absence of fees occurs because the shares are distributed directly by the investment company, instead of going through a secondary party.
- 38. Another name for global funds
- 39. A 1035 exchange is a ______ exchange between like contracts
- 40. An investment company must have a clearly defined _________ objective
- 41. An investor’s _______ in mutual fund shares is what was paid to buy the shares plus reinvested dividends and capital gains distributions
- 42. If the separate account performance is less than the AIR, the next month’s payment is ______ than the previous months payment
- 44. This type of fund invests in companies located anywhere in the world including the investor’s own country
- 46. An investor whom reinvests their dividends or capital gains to purchase additional share does not need to pay a _________
- 48. A policyowner who wants a refund within ________ days will receive all money paid
- 53. This type of fund contains a stock component for appreciation and a bond component for income.
- 54. An open-end management company is commonly known as a ____________
- 55. ___________ bond funds generally have a higher credit risk than government issues and can be classified as investment grade or non-investment grade
- 57. After a variable life policy has been in effect for two years, the surrender value of the policy is the _____ value
- 59. This is a significant risk of purchasing a fixed annuity where the fixed payment the annuitant receives loses buying power over time
- 60. Mutual funds that typically have a one-year, 1% CDSC, a .75% 12b-1 fee and a .25% shareholder fee are known as _________ shares
- 61. The purchase price of a fund share
- 62. This type of annuity s a type of insurance contract that promises to pay the buyer a specific, guaranteed interest rate on their contributions to the account.
- 63. In a variable annuity, payments are invested into the _______ account
- 64. For purposes of the sales charge, a life insurance contract is a maximum of _____ years
- 67. This type of fund invests in companies located anywhere in the world outside of its investors’ country of residence
- 69. Closed-end investment companies are also known as _______ traded funds
- 73. The _______ theory is a theory stating that an investment company that passes all capital gains, interest and dividends on to its shareholders shouldn't be taxed at the corporate level like most regular companies
- 75. The ______ guarantee is the insurance company’s guarantee that the annuitant will receive payments as long as he/she lives
- 77. An investor who purchases principal-protected mutual funds may not make new ___________
- 80. A beneficiary of an annuity is guaranteed either the greater of the total value of the annuity or the total amount _____ if the annuitant passes away
- 81. Triple taxation of investment income may be avoided if the mutual fund qualifies under __________ of the Internal Revenue Code.
- 82. This type of mutual fund stresses current income over appreciation
- 86. This type of annuity is purchased with a lump sum and the payout of the benefits usually commences within 60 days
- 87. Shares that are inherited are considered to have a ________ holding period and will be subject to more favorable tax rates
- 88. This type of annuity pays an interest rate based on the performance of a specified market index, such as the S&P 500.
- 89. The holding period of one year or less is considered __________
- 90. Investors that buy into a unit investment trust have a ________ right to income and capital gains generated by the funds’ investments
- 91. An _________ gain is a potential profit that exists on paper, resulting from an investment. It is an increase in the value of an asset that has yet to be sold for cash
Down
- 2. Another name for balanced funds
- 3. In a fixed annuity, payments are invested in the ______ account
- 4. This is the maximum sales charge allowed on a fixed-premium variable life contract over the life of the contract
- 7. If the separate account performance is greater than the AIR, the next month’s payment is _____ than the previous months payment
- 9. The investment strategy in which an investor divides up the total amount to be invested across periodic purchases of a target asset in an effort to reduce the impact of volatility on the overall purchase is known as ______________ averaging
- 10. These funds split the investments between stocks for growth, bonds for income and money market instruments or cash for stability
- 13. Loans are not considered _____ receipt of income and are received income tax free
- 14. There is no such thing as a _______ payment immediate annuity
- 17. ____________ is the process of converting an annuity investment into a series of periodic income payments
- 19. This type of fund seeks to invest in stocks that are deemed to be undervalued in price based on fundamental characteristics.
- 22. A hypothetical Illustration can show the maximum gross return (12%) but must provide a ______ percent return as well.
- 24. Indexed annuities often set limits on the potential gain at a certain percentage. This is known as the ___________ rate
- 25. The selling of a security at a loss for tax purposes and, within 30 days before or after, purchasing the same or a substantially identical security is known as __________
- 27. The _________ stage is the period during which an individual receives distributions from an annuity account
- 30. A _________ investment company is qualified to pass-through income under Regulation M of the IRS
- 31. An investor will owe capital gains taxes on the _________ if they sell shares after reinvesting
- 32. Another name for international funds
- 33. An annuity investor may pay a ____________ for early termination.
- 35. ______ months is the minimum amount of time allowed for an exchange privilege for a life insurance policy
- 36. This is the minimum percentage that must be made available for a loan after the policy has been in
- 43. Aggressive growth funds are also known as _________________
- 45. When buying or selling closed-end funds in the secondary market, an investor will pay a __________
- 47. Reinvested distributions purchase __________ shares
- 49. True or false: an investor will be taxed on a mutual fund’s unrealized profits
- 50. This term refers to a stream of payments guaranteed for some period of time
- 51. Mutual funds are required by the SEC to price fund transactions according to the day’s end net asset value. This is known as _______ pricing
- 52. Short-term capital gains are taxed at _______ income tax rates
- 56. These funds offer investors a guarantee of principal, adjusted for fund dividends and distributions, on a set future date while providing opportunities for higher returns through investments in higher risk and higher expected return asset classes such as equities
- 58. Mutual funds with a front-end load are known as _________ shares
- 65. Whom assumes the risk in a variable annuity?
- 66. This type of annuity include benefits, which include enhancement of a buyer’s premium but may come with longer surrender periods
- 68. This is a type of annuity where the value of which can vary based on the performance of an underlying portfolio of mutual funds.
- 70. Annuities are funded with _______ dollars
- 71. Dollar cost averaging results in a ______ cost per share than the average price per share.
- 72. Accumulation units _____ in value based on the separate account performance
- 74. There will be a cost basis ________ when dividends are reinvested
- 76. A voluntary _______ plan offers a mutual fund investor a way to accrue a large number of shares over time by investing a manageable fixed-dollar amount on a regular schedule, usually monthly
- 78. If an investment company does not have the minimum amount in net assets, it may still register a public offering with the SEC if it can meet the requirements within ______ days of the registration
- 79. True or false: the reinvestment of dividends is a taxable event to the investor
- 83. These funds are structured to grow assets in a way that is optimized for a specific time frame. The structuring of these funds addresses an investor's capital needs at some future date
- 84. This is a conservative projection of the performance of the separate account over the estimated life of the contract. It is provided to determine the value of an annuity contract and, therefore, the periodic income payment provided to the annuitant.
- 85. There is no stated ________ sales charges on variable annuities