Chapter 14 preview
Chapter 14: Investment Risks, Returns and Disclosures
Chapter 14 covers investment risk types, cost basis methods, books and records requirements, and senior investor protections. Systematic risk affects the whole market; unsystematic risk is specific and diversifiable. The wash sale rule disallows a loss if the same security is repurchased within 30 days. Long-term capital gains (held >12 months) are taxed at preferential rates; short-term gains are ordinary income. Trusted contact persons are designated for customer wellbeing — they have no account authority.
Chapter summary
Chapter 14 covers investment risk types, cost basis methods, books and records requirements, and senior investor protections. Systematic risk affects the whole market; unsystematic risk is specific and diversifiable. The wash sale rule disallows a loss if the same security is repurchased within 30 days. Long-term capital gains (held >12 months) are taxed at preferential rates; short-term gains are ordinary income. Trusted contact persons are designated for customer wellbeing — they have no account authority.
This public preview shows the chapter scope without exposing the private reader, flashcards, mapped practice, notes, or progress tools. Full chapter study unlocks after access is active.
Key concepts
- Required Disclosures
- Soft-Dollar Arrangements
- Client Notifications
- Books and Records
- Financial Exploitation of Specified Adults - FINRA Rule 2165
- ACATS-Transferring Accounts
- Investment Risks
- Investment Returns
- Cost Basis, Capital Events, and Return of Capital
- Required Disclosures
Unlock the full chapter loop
Full access opens the private chapter reader, section-tagged flashcards, mapped questions, progress tracking, and the timed exam simulation.