Practice Quiz

FINRA Series 7

Category - Series 7

Start a Study Session Sign up for Question of the Day
Which of the following is not true about mutual funds and variable annuities?
  1. each is regulated under the Investment Company Act of 1940
  2. the holder of each must pay income taxes on the dividends received each year
  3. the registered representative must have FINRA registration to solicit either one
  4. the payout of each depends on the investment results of the securities owned in the portfolio
Explanation
Answer: B - the holder of each must pay income taxes on the dividends received each year. Only the holder of mutual fund shares must pay income tax on annual dividends. This is “not” true of annuity owners. The other choices are true statements.
Was this helpful? Upvote!
Login to contribute your own answer or details
Start a Study Session Sign up for Question of the Day

Top questions

Related questions

Most popular on PracticeQuiz