Term
|
Definition
| Wages salaries tips and other monies from earned employment. Also alimony |
|
|
Term
|
Definition
| Over 50 years of age are allowed to catch up 1000 a year |
|
|
Term
| Coverdell education accounts |
|
Definition
| 2000 per year. Nondeductible. Not sibject to tax provided dist is taken before 30. Income limits are: 95k and 190 begins to phase out. 110k and 220k can not contribute. |
|
|
Term
|
Definition
| Annual dividend/current market price |
|
|
Term
|
Definition
| Typically two days prior to the record date |
|
|
Term
|
Definition
| Annual interest/current market price |
|
|
Term
| What happens if an rr quits |
|
Definition
|
|
Term
|
Definition
| Fund may deduct up to 20% of any one payment. Maximum of 16% of the first four years payments. Msximum of 9% over the life of the plan. |
|
|
Term
|
Definition
| Maximum of 50% of first years payment. Maximum of 9% over the life of the plan. |
|
|
Term
| Refunds. Spread load and front load |
|
Definition
| 45 days. Both refund of sales charges blus current nav. 46 to 18. Front load: refund of all sales charges above 15% plus current nav. Spread load: current nav. After 18 months: both current nav |
|
|
Term
| Front load class A shares |
|
Definition
Sales charges due at time of purchase.
Original investment smaller
Lower annual expenses |
|
|
Term
|
Definition
Available for self employed persons.
Can contribute 25% or 49k whichever is less
Can still contribute to an IRA.
Earnings grow tax deferred. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Member firms and customers |
|
|
Term
|
Definition
| Member to member transactions |
|
|
Term
| National adjuciatory council |
|
Definition
| Is the national committee that has initial apellate authority regarding decisions rendered in FINRA disciplinary proceedings under the Code of Procedure. |
|
|
Term
|
Definition
| Mutual funds can only be capitalized w/ common stock. May invest in any type. IPO never ends. May buy back shares. Sales charges levied. Fixed pricing. |
|
|
Term
|
Definition
| Continuous pricing. Bid and ask. May sell common preferred or debt securities to capitalize. Closed to new investors. Commissions charged in secondary market. May be purchased using margin after 30 days have elapsed. Shares not redeemable. |
|
|
Term
|
Definition
| 75% of board must be disinterested members and may not own more than 5% of the funds shares. |
|
|
Term
|
Definition
| supervisor for investment part. Must file ADV. Contract renewal after 2 years. Subject to board approval every year after. |
|
|
Term
|
Definition
| approves sales literature. must be kept for 3 years. |
|
|
Term
|
Definition
| provides a range of pop. Discloses relevant information about purchasing issue. |
|
|
Term
|
Definition
| elected representatives of funds shareholders. Monitors performance. Does not vote to recieve more dividends. |
|
|
Term
| Unit of investment trusts |
|
Definition
| established under a trust indenture. Fixed portfolio. SBI's shares of beneficial interest. Supervised. |
|
|
Term
| Face amount certificate company |
|
Definition
| investors purchase a debt certificate at a discount and recieve a predetermined rate of interest. Difference between initial purchase price and face value. |
|
|
Term
|
Definition
| taxed at preferential rates no more than 15% |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
| when do RRs have to finish their continuing education? |
|
Definition
| within 120 days of their 2nd anniversary three years after. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| no coupon sold at a discount. virtually free of default risk. |
|
|
Term
|
Definition
| 2 to 10 years semi annually. subject to federal tax. Exempt from state and local tax. |
|
|
Term
|
Definition
| 10 to 30 years. pays semi annually. subject to federal taxation. exempt from state and local taxes. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| backed by issuers promise to pay |
|
|
Term
|
Definition
| backed by promise to pay as well as someone elses back up promise. |
|
|
Term
|
Definition
| may be converted into equity. |
|
|
Term
|
Definition
| conversion ratio x conversion price= 100 |
|
|
Term
|
Definition
| bonds annual interest rate. principal, par value and face value=1000 |
|
|
Term
|
Definition
nominal same
current same
ytm same |
|
|
Term
|
Definition
nominal highest
current middle
ytm lowest |
|
|
Term
|
Definition
nominal lowest
current middle
ytm highest |
|
|
Term
|
Definition
| -duration x interest rate change x 100 |
|
|
Term
|
Definition
mergers and aquisitions
a change in the authorized number of shares
stock splits |
|
|
Term
|
Definition
| allow shareholders to maintain their proportionate ownership in the company |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| company buying back their own stock. no rights and no dividends. |
|
|
Term
|
Definition
|
|
Term
|
Definition
is considered equity
trades like a bond
sensitive to interest rates
lacks voting rights
has dividend preferences over common
liquid preference |
|
|
Term
|
Definition
| how much in par value of the preferred they must give u for one share of the common |
|
|
Term
|
Definition
cllcontact owner pays seller premeium for the rght to buy at a set price
put: the buyer paysthe seller a premium for the right t sell at a set price. |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| sales proceeds-cost basis= cap gain or loss |
|
|
Term
|
Definition
| everything of value recieved in reurn for the sale of the asset. return of the sale of an asset. examples: redemption of bonds mutul fund shares and expiation of options |
|
|
Term
|
Definition
| normally the amount of the pai for puchase. Mutal fund basis= originalinvstmen d any additional investments and any reivestmens. |
|
|
Term
|
Definition
| general contraction in economic ativity. disinflation= prices rise at a slower rate. deflation= decline in general level of prices |
|
|
Term
|
Definition
| undewriter purchases all of the securities |
|
|
Term
|
Definition
| right to buy more stock for limited time |
|
|
Term
|
Definition
|
|
Term
|
Definition
| responsible for making investment decisons for a particular fund. |
|
|
Term
|
Definition
| investment advisors fees based on %. Covers research and salaries of IA. |
|
|
Term
|
Definition
perform record keeping
cancels issue shares distributes gains or dividends
shareholder mailings |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Lines up stores to sell. Products selling: fees get paid based on load or 12 b 1 fees. Required to submit sales literature. |
|
|
Term
|
Definition
| Funds "bid" price. It is what customers receive when they redeem (sell) shares. |
|
|
Term
|
Definition
| Funds "ask" or offer price. |
|
|
Term
|
Definition
| Fixed payment plan over a fixed period of time. Front end: sales charge up front. Spread load: deduct 20% of any individual payment. |
|
|
Term
|
Definition
| Help cover costs of distribution must be in writing. |
|
|
Term
|
Definition
| (End nav + dist-initial nav)÷initial nav)x 100 |
|
|
Term
|
Definition
| Covers day to day operational expenses of the fund. Cover legal and accounting costs. Pays for TA and Custodian. |
|
|
Term
|
Definition
| Total annual operating expenses ÷ average assets |
|
|
Term
|
Definition
| Responsible for making investment decisions for a particular fund. |
|
|
Term
|
Definition
Par: nominal
Book: theoretical
Market: todays worth |
|
|
Term
|
Definition
Mergers and aquisitions
a change in the authorized number
Stock splits |
|
|
Term
|
Definition
| -duration x interest rate change x 100 |
|
|
Term
|
Definition
| Annual dividend/current market price |
|
|
Term
| Front load (class a shares) |
|
Definition
Sales charges due at time of purchase
Original investment smaller
Lower annual expenses
Recieves current NAV refund |
|
|
Term
|
Definition
Investors purchase a debt certificate at a discount and receive a pre determined rate of interest.
Difference between initial purchase price and face value. |
|
|
Term
|
Definition
| Established under a trust indenture. Fixed portfolio. SBI's shares of benefecial interest. Supervised. |
|
|
Term
|
Definition
| Approves all sales literature. Must be kept on file 3 years. |
|
|
Term
|
Definition
| Provide a range of pop. Disclose relevant info about purchasing issue. |
|
|
Term
|
Definition
Recieves premium from traditional and fixed annuities.
Investment profile: conservative
Rates of return: guaranteed by insurance company.
Investment risk to: insurance company |
|
|
Term
|
Definition
Recieves premium from variable products.
Investment profile: varies by subaccount
Rates of return: not guaranteed
Investment risk: contract owner |
|
|
Term
|
Definition
45 days from execution
10 days from receipt |
|
|
Term
|
Definition
|
|
Term
| Single premium deferred annuity |
|
Definition
| A lump sum investment is made and grows on a tax deferred basis. |
|
|
Term
| Periodic payment deferred |
|
Definition
| Purchased thru periodic payments |
|
|
Term
|
Definition
| Lump sum is deposited and distributions start right away. Usually to fund a known expense. |
|
|
Term
|
Definition
| Contract owner relinquishes control of funds to the insurance company and is promised a lifetime income. Calculated based on principal balance, annuitants age, payout option, air |
|
|
Term
| Annuity single distributions |
|
Definition
|
|
Term
|
Definition
| Regulates aprivate sector retirement plans. Qualifed plans must be eligible to all employees that qualify. |
|
|
Term
|
Definition
Known: benefit
Investment risk: employers bears risk
Responsibility to fund: employer |
|
|
Term
|
Definition
Known: contribution
Investment: employess bears risk
Responsibility of funding: employee or employer |
|
|
Term
|
Definition
Defined benefit
Mandatory contributions made by employer. |
|
|
Term
|
Definition
| A profit sharing plan is a type of defined contribution where employe contributes a portion of the firms profits each year. May be skipped or reduced. |
|
|
Term
|
Definition
Defined contribution
Employee makes pretax contributions thru payroll deductions
Employer may make matching contribution |
|
|
Term
|
Definition
Acceptable: stocks bonds mutual funds
Annuities us minted coins
Unacceptable: insurance collectibles short sales margin trading speculative option |
|
|
Term
| Alternative maximum tax rate |
|
Definition
| Some municipal bonds usually idr or private bonds pay interest that may be taxed by the fed govt. Tax preferred items. Rate traditionally lower than the investore marginal tax rate. |
|
|
Term
|
Definition
45 days to recieve full refunds
front load partial refund 18 months above 15% sales charge. |
|
|
Term
|
Definition
| growth, income, defensive, cyclical, countercyclical, seasonal, blue chips, american depository reciepts |
|
|
Term
|
Definition
| elected reps of a funds shareholders. monitors performance. does not vore to recieve more dividends. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| buy stock sell stock remove money remove securities |
|
|
Term
|
Definition
|
|
Term
|
Definition
| failure to pay for a transaction in a timely basis will result in the acct being frozen for 90 days. |
|
|
Term
|
Definition
| protects consumers from bankers going bankrupt. |
|
|
Term
| basic info when profiling |
|
Definition
| age, time horizon, employment status, tax situation, insurance needs, work benefits, estate planning, attitude |
|
|
Term
| basic info when profiling |
|
Definition
| age, time horizon, employment status, tax situation, insurance needs, work benefits, estate planning, attitude |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| delivered at or before the time of purchase |
|
|
Term
| Statement of additional info |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| Eurodollar. Secured. Mortgage. Equipment trust. Collateral. Money market. Commercial paper. Bankers acceptance. Negotiable cds |
|
|
Term
| back load (class b shares) |
|
Definition
pricing formula. Entire purchase is invested. CDSC-deferrered charge
depens on amount of time customer stays in. Higher annual expenses. |
|
|
Term
|
Definition
| mutual funds that invest in other funds |
|
|
Term
|
Definition
| invested in publicly traded securities or financial futures. |
|
|
Term
|
Definition
designed to compete with mutual funds
trades on stock exchanges
low expenses
tax efficiency
commission for each sale paid |
|
|
Term
|
Definition
long term= more than one year
short term= one year or less |
|
|
Term
|
Definition
no interest boonds
sold at discount
accretion taxed as ordinary income
No reinvestment risk. Tax advantage |
|
|
Term
| Investment company act of 1940 |
|
Definition
an IC is considered diversified if it invests in a minimum of 75% shares of its total assets in the following manner:
no more than 5% in any one corp. cant own more than 10% of voting stock in any one corp. |
|
|
Term
|
Definition
| companies that distribute a min of 90% will only be taxed on retained earnings |
|
|
Term
| how often can someone take the series 6? |
|
Definition
1st attempt then 30 days
2nd attempt then 30 days
3rd attempt then 180 days |
|
|
Term
|
Definition
|
|
Term
| max sales charge for mutual fund |
|
Definition
|
|
Term
| level load (class c shares) |
|
Definition
| pays fixed percentage each year |
|
|
Term
|
Definition
| tax sheltered annuity public and porocial school systems. religious organization. qualified non profit orgs. hospitals museums. |
|
|
Term
|
Definition
| dollar ammount a person must reach to get a reduced sales charge |
|
|
Term
|
Definition
55k 89k tax deductible
65k 109k non tax deductible |
|
|
Term
|
Definition
| cash divs taxed at preferential rates max 15% stock cost basis is adjusted and taxable upon sale |
|
|
Term
|
Definition
nondeductible
post tax
tax deferred split tax dist |
|
|
Term
|
Definition
anyone with earned income may contribute
pre tax grows tax defereed
distributed taxable 100%
no plan at work-may deduct |
|
|
Term
|
Definition
tax deductible contributions
earning grow
tax deferred
zero cost basis entire amount taxed upon dist |
|
|
Term
|
Definition
not an ira contribution not deductible
earnings grow tax deferred LIFO
cost basis= contributions
tax upon dist as oridinary income |
|
|
Term
|
Definition
post tax grows deferred
dist tax free 59 1/2 and 5 years min
income limits 105k 106k above 120k 176k cant contribute can contribute 5k or lesser of earned income |
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| when the fed buys govt securities it gives banks more money on reserve and vice versa |
|
|
Term
|
Definition
defined contribution: 401k keogh SEP profit sharing
defined benefit: pension |
|
|
Term
|
Definition
| exempt from federal taxation. subject to state and local taxation |
|
|
Term
|
Definition
| federally taxable as income in year recieved exempt from state local tax |
|
|
Term
|
Definition
| Taxable as ordinary income in year received. |
|
|
Term
|
Definition
| Over 50 years of age are allowed to make catch up 1000 a year |
|
|
Term
|
Definition
| A place to park assets while considering |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Peace of mind. No obligation by gov. Not guaranteed |
|
|
Term
|
Definition
| Backed by promise to pay as well as someone elses promise |
|
|
Term
|
Definition
| May be converted into equity. |
|
|
Term
| Principal protected funds |
|
Definition
| Invest without capital risk for specific time period. Invest in zero coupn bonds as well as other stocks and bonds. Dist reinvested. Higher expenses |
|
|
Term
|
Definition
| Option- sell call options against portfolio |
|
|
Term
|
Definition
| Looking to other countries. |
|
|
Term
|
Definition
| Invest exclusively outside the us |
|
|
Term
|
Definition
| All over including the us |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Common stock seek capital |
|
|
Term
|
Definition
| Common stock seek capital |
|
|
Term
|
Definition
| Rapid growth emerging companies |
|
|
Term
|
Definition
S and p 500 passively managed
Low trading activity and low cost |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Common or preferred stocks |
|
|
Term
| Conservative blue chip funds |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| Balances cap appreciation with cap return |
|
|
Term
|
Definition
| Balances equity and debt holdings |
|
|
Term
|
Definition
|
|
Term
|
Definition
Mortgage backed securities
Safety and current income |
|
|
Term
|
Definition
| Tax sheltered income. Not guaranteed by gov. |
|
|
Term
|
Definition
| Issued by private companie§ |
|
|
Term
|
Definition
| Finance a transaction in two separate countries. |
|
|
Term
|
Definition
| Fair market value as of the date of the decendents death. |
|
|
Term
| Who must be registered under the securities act of 1934? |
|
Definition
| Broker dealers and securities exchanges |
|
|
Term
|
Definition
Average price: add all prices divide by how many.
Average cost: add all prices then divide into total investment amount |
|
|
Term
|
Definition
| Must be submitted within ten days of first use |
|
|
Term
|
Definition
| Correspondence and subject to spot checks prior to distribution. |
|
|
Term
|
Definition
Must be calculated at least annually
Cash value must be calculated at least monthly |
|
|
Term
| Conduit theory of taxation |
|
Definition
| Distribute at least 90% of its net investment income. |
|
|
Term
| Change of fund investment policy |
|
Definition
| A majority of the funds outstanding shares must appove of the change |
|
|
Term
|
Definition
| Interest rates go up bond prices fall and vice versa |
|
|
Term
|
Definition
| Used to help determine the amount of an annuitants first monthly payment. |
|
|
Term
|
Definition
|
|
Term
|
Definition
Actively traded stocks have narrow spreads
Thinly traded stocks have wide spreads
Wide spreads are disadvantageous to retail investors |
|
|
Term
|
Definition
| Good up to 13 months. Customers who fail to honor will lose escrowed shares. |
|
|
Term
|
Definition
| Can claim only if they sell shares for less than she paid for |
|
|
Term
| Finra hearing panel has how long to file a decision |
|
Definition
|
|
Term
| How do stock dividends affect cost basis |
|
Definition
| Dividend increases number of shares therefore lowering cost basis |
|
|
Term
| Statute of limitations to initiate arbitration proceedings against an RR |
|
Definition
|
|
Term
| Ways to verify customer identity |
|
Definition
Copy of customers passport
Copy of customers drivers license
Contact the customer |
|
|
Term
| Types of investment companies |
|
Definition
Management companies (open ended closed ended)
Unit investment trusts
Face-amount certificate companies |
|
|
Term
| Capital gains are distributed by mutual funds |
|
Definition
|
|
Term
|
Definition
Also known as the current yield
It does not include capital gains dist in the calculations |
|
|
Term
|
Definition
| Accumulation is considered when calculating sales charge. |
|
|
Term
|
Definition
| Selling stock to the customer out of its inventory and charging a price above the current offer. |
|
|
Term
| How long may finra file a complaint after RR is terminated? |
|
Definition
|
|
Term
|
Definition
|
|
Term
|
Definition
| The simultaneous purchase and sale of the same or related securities to take advantage of inefficiencies in the market place. |
|
|
Term
|
Definition
| A benchmark that is designed to reflect movement of the overall market |
|
|
Term
|
Definition
| Expansion peak recession trough |
|
|
Term
|
Definition
| A form of illegal and manipulative activity whereby selling pressure is placed on a security to stop its price from moving higher. |
|
|
Term
|
Definition
| A feature of permanent life insurance whereby money builds up. |
|
|
Term
| Coincident economic indicators |
|
Definition
| Economic measurements that occur simultaneously with the current pace of economy. |
|
|
Term
|
Definition
| A short term debt obligation of an issuer that does not exceed 270 days. |
|
|
Term
|
Definition
| A service that delivers real time trade info on securities trading on the New York stock exchange. |
|
|
Term
|
Definition
| When the holder is in possession of an equity that will be delivered if the option is excercised. |
|
|
Term
|
Definition
| When a board announces the amount of the next dividend |
|
|
Term
|
Definition
| A reduction in a common stocks earnings per share. |
|
|
Term
|
Definition
| All relevant knowledge about a security is known by the marketplace and reflected in the instruments market price. |
|
|
Term
|
Definition
| The ammt of an annuity dist thatis considered return of capital. |
|
|
Term
| SEC exempt securities include |
|
Definition
| US gov. And municipal issues as well as many short term securities |
|
|
Term
|
Definition
| When the owner of a preemptive right warrent or option uses the derivative instrument to acquire or liquidate the underlying security. |
|
|
Term
|
Definition
| Enforces money laundering regulations |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Maximum allowable commision or sales trade that may be levied on an OTC trade. |
|
|
Term
|
Definition
| Method of mutual fund pricing in which all purchases and sales are based on next calculated price. Once per day as of 4pm |
|
|
Term
|
Definition
| A method of securities valuation which employs data collection. |
|
|
Term
|
Definition
| Municipal isse that is backed by corporate lease payments. |
|
|
Term
|
Definition
| Any individual with 10% or greater equity position in a company. Or senior management or board of directors of a corp. |
|
|
Term
|
Definition
| The unregulated international market for the trading of foreign currencies. |
|
|
Term
|
Definition
| The right of a creditor to attach to the physical assets of a debtor that is secondary to that of other lenders. |
|
|
Term
|
Definition
| Supports govt intervention |
|
|
Term
|
Definition
| Long term equity options that may have a life of up to two or three years. |
|
|
Term
|
Definition
| The use of borrowed funds (debt) in an attempt to increase investments returns |
|
|
Term
|
Definition
| A firm that provides a two sided quote at all times. |
|
|
Term
|
Definition
| A reverse repurchase agreement. When the gov transacts a matched sale it is selling securities and agreeing to buy them back at a later date. |
|
|
Term
|
Definition
| Us govt can steer economy clear of extreme recession |
|
|
Term
|
Definition
| Self reg org responsible for regulating broker dealers and dealer banks in the business of buying and selling muicipal securities. |
|
|
Term
|
Definition
| Short term municipal securities for the purpose of providing temp financing |
|
|
Term
|
Definition
| A stock index that is comprised of securities either in a single industry market segment or geographic location |
|
|
Term
|
Definition
| A ratio used by fundamentalists to determine the relative value of an equity security. It is calculated by taking a stocks market price and dividing it by the companys earnings per share. |
|
|
Term
|
Definition
| Securities sold to a specific group. Exempt from SEC. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| Measure of the purchasing power of an investment |
|
|
Term
|
Definition
| The time frame in which a securities transaction will settle. |
|
|
Term
|
Definition
| Manages a portfolio of real estate in order to earn profits. |
|
|
Term
|
Definition
|
|
Term
|
Definition
| an economic condition marked by a weak economy and high unemployment but in which inflation persists at high levels |
|
|
Term
| statutory disqualification |
|
Definition
| the porhibition of a registered rep from conitued association with a self-regularoty organization |
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Definition
| a method of holding customer securities in the name of the brokerage firm as nominee for the customer. The customer is considered the beneficial owner of the securities. |
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Definition
| omvestment options in a separate account of an insurance company into which purchasers of a variable annuity or variable life insurance contract may allocate all or part of their investment. |
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Definition
| determining which securities to buy or sell and when to buy or sell that relies on market data about stock prices and volume of trading. |
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Definition
| a breif announcement of an upcoming sale of new securities or of a sale that is in process. |
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Term
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Definition
| thte location on an exchange designated as the area in which transaction in a certain stock must be executed through an open out cry process. |
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Term
| trust indenture acto fo 1939 |
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Definition
| issuance of corp bonds by requiring the issuer to create a written doc describing the terms of issue. |
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Term
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Definition
| an individual who owns or leases a seat on the new york stock exchange and who does not execute orders exclusively for the customers of one member firm. |
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Term
| Securities exchange act of 1934 |
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Definition
Registration and regulation of securities exchanges
Registration and regulations of broker dealers
Formation of Finra |
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Term
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Definition
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Term
| What's the penalty for for insider trading? |
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Definition
| Up to three times the amount gained or loss avoided. |
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Term
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Definition
| Up to 20 years in prison and a fine up to 5,000,000. |
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Term
| Investment company act of 1940 |
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Definition
| An investment company must have more than 100 investors. |
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Term
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Definition
| Must be approved by a majority of outstanding votinng shares and again in 2 years. Then renewed annually. |
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Definition
| Written or electronic communication that is targeted to one individual. Letters individual emaol and text messaging. May do spot checks. |
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Term
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Definition
| Directed to a specific group of ppl. targeted audience. |
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Term
| Securities exchange act of 1934 |
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Definition
Registration and regulation of securities exchanges
Registration and regulations of broker dealers
Formation of Finra |
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Term
| How long does a respondent have to reply to a complaint |
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Definition
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Term
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Definition
| No appeals decisions are final |
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Term
| Simplified arbitration is used |
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Definition
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Term
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Definition
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Term
| Assistants may not be paid |
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Definition
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Term
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Definition
| The same premium will buy a variable amount of accumulation units. |
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Term
| A qualified retirement plan must |
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Definition
| Permanent in nature. Must be funded. Must have benefits and agreements in writing. |
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Term
| During an inflationary period |
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Definition
Fed will tighten money supply
Increasing interest rates
Slows down economy
Bond prices will decrease |
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Term
| Capital gains distribution |
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Definition
| Open end management must sell a security out of its portfolio at a gain and distribute the gain to each shaeholder according to his proportional interest in the fund. |
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Term
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Definition
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Term
| What happens if a persons life policy lapses |
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Definition
| The customer must pay the amount of the premiums and provide evidence of insurability. |
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Term
| What happens to shares if interest rates increse |
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Definition
| Share value decreases and income stays stable |
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Term
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Definition
| Can cause net income to decrease |
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Term
| Stock trades of regular corporations |
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Definition
| Occur in full shares in the secondary market |
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Term
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Definition
| Fractional or full shares |
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Term
| When assets are distributed |
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Definition
| The funds nav will decrease |
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Term
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Definition
| Dealer commission. Distribution fees and advertising fees |
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Term
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Definition
| Tax free exchange form from one company to another |
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Term
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Definition
| A majority of the outstanding common stock shares approve |
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Term
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Definition
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Term
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Definition
| An investor wants his dollars to buy the same amount of goods next year. |
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Term
| Variable life policy may not |
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Definition
| Add additional riders without additional premiums |
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Term
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Definition
| Money left over after an investor has paid all his monthly expenses out of his monthly income |
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Term
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Definition
| Must be filed for all transactions involving currency or bearer instruments greater than 10k which r physically transported into or out of the us. |
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Term
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Definition
| Judicially approved restructuring |
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Term
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Definition
| Finra then naj then sec then fed courts |
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Term
| Anti money laundering program |
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Definition
| An independent audit function that will monitor and evaluate the firms anti money laundering program |
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Term
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Definition
| Must be filed within 15 calendar days for all deposits exceeding 10k |
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Term
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Definition
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Term
| What fees are detailed in the prospectus |
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Definition
| 12b1 fees are detailed in a funds prospectus. |
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Term
| What term best describes production |
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Definition
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Term
| How often are long term capital gains distributions typically paid out by a mutual fund |
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Definition
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Term
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Definition
| increase interest rates bond prices decrease |
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Term
| which are safer stocks or bonds |
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Definition
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Term
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Definition
| allows separate account to transfer to investment alternatives |
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Term
| do 12b1 charges include legal fees |
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Definition
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Term
| can close ended funds sell below nav |
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Definition
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Term
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Definition
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Term
| ex dividend date for a mutual fund |
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Definition
| the next business day after a record date |
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Term
| what are mutual fund managers prohibited from doing |
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Definition
buying on margin
selling naked options
selling short stock |
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Term
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Definition
| are derivatives from common stock |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| winning or losing position that has not yet been sold |
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Term
| eligible for qualified annuities |
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Definition
| pub school tax exempt religious |
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Term
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Definition
| mv changes and distributions |
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Term
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Definition
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Term
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Definition
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Term
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Definition
| insured lives longer, insurance company denies settlement, insurance company becomes insolvent |
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Term
| what kind of risk do bonds primarilly have |
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Definition
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Term
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Definition
| apply to all broker dealer employees |
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Term
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Definition
| exposed to nonsystematic risk |
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Term
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Definition
| max of 100 employees ira set up for each eligible employee |
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Term
| performance pre dating inclusion |
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Definition
| may be used if the fund has not dramatically altered its investment strategy |
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