Term
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Definition
| Application submitted by the organizers of a corporation in order to incorporate. The application requests an amount of common stock to be authorized by the state and may also request the amount of preferred stock. |
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Term
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Definition
| A legal entity created by filing articles of incorporation with the state. It is recognized as a separate entity from the owners and / or shareholders. |
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Term
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Definition
| The maximum amount of stock that a company may issue without seeking additional authorization from the state and approval of the shareholders. |
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Term
| Shareholders / Stockholders |
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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
| Stock issued (owned) by a stockholder. |
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Term
| Authorized but Unissued Stock |
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Definition
| Shares authorized by the state, but not yet issued by the corporation. (Utilized when the company needs additional capital for its operations). |
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Term
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Definition
| The process by which a securities firm sells stock on behalf of corporations that are issuing securities. |
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Term
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Definition
| The first sale of stock by a corporation to the public. |
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Term
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Definition
| The issuance of new shares to the public. |
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Term
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Definition
| Common stock issued by a corporation that has not been repurchased as treasury stock. |
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Term
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Definition
| Any resale by an owner of previously issued stock. |
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Term
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Definition
| A distribution of securities that have been previously distributed to the public. |
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Term
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Definition
| Common stock repurchased by the issuer. Dividends are not distributed. |
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Term
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Definition
| Group of people, elected by shareholders, to manage a company and appoint the company's president and other officers who manage its day-to-day operations. |
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Term
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Definition
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Term
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Definition
| A security that evidences debt. The most common are bonds, which can be issued by a municipality, state, or corporation. |
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Term
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Definition
| A corporation's total long-term debt and stockholder's equity. |
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Term
| Shareholders are part owners in the company. Bondholders are not. Bondholders lend money to the company. |
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Definition
| Primary difference between shareholders / bondholders |
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Term
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Definition
Who receives a higher priority in recapturing their investments in the event of a company's liquidation?
A. Shareholders
B. Bondholders
C. The Same |
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Term
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Definition
| Term used to describe a company that carries a high percentage of debt to equity. (More risky stock). |
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Term
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Definition
| Arbitrary value assigned when the stock is authorized that establishes its claim to the company's assets in the event of a liquidation. |
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Term
1. Secured bondholders
2. Debentures (Senior, then subordinated)
3. Preferred Shareholders
4. Common Shareholders |
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Definition
| In the event of a liquidation, claims on assets are paid in what order? |
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Term
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Definition
| A non-secured bond issued by a corporation and backed by its good faith and credit. |
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Term
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Definition
| Securities representing ownership in a corporation. Although the most junior type of equity security a corporation can issue, it generally carries voting rights and the opportunity for dividends and capital appreciation. |
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Term
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Definition
| Distribution of corporate earnings in which shareholders receive additional shares of stock rather than cash. |
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Term
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Definition
| An alternative to cash or stock dividends consisting of the corporation's assets. The most common form is a distribution of securities of other companies owned by the corporation. |
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Term
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Definition
| The right of a shareholder to maintain proportionate ownership in a corporation by purchasing a proportionate amount of newly-issued shares before they are made available to non-shareholders. Usually done through a rights offering. |
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Term
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Definition
Which of the two is non taxable?
A. Stock Dividends
B. Property Dividends |
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Term
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Definition
| Right given to shareholders to elect board members and decide on other important issues affecting the corporation. |
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Term
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Definition
| Type of voting where stockholders are accorded one vote per share owned. |
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Term
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Definition
| Type of voting that gives increased representation to minority shareholders by allowing them to have as many votes as there are directors to be elected. |
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Term
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Definition
| Capital stock that has a higher claim to assets and dividend than does common stock. It carries a rate of return stated as a dollar amount or a percentage of par value. |
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Term
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Definition
| Dividends paid on preferred stock which have a higher priority over the payment of the common stock dividend. |
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Term
Common - ownership stake, growth potential, voting rights
Preferred - ownership stake, more likely to receive dividends, priority in bankruptcy, stated rate of retun |
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Definition
Which of these traits belong to Common Stock holders and which of these traits belong to Preferred stock holders?
Ownership stake, more likely to receive dividends, priority in bankrupcy, growth potential, voting rights, state rate of return |
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Term
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Definition
| A provision on a bond or stock that allows the issuer to repurchase the bond or stock. |
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Term
1. The right to vote in electing members of the board of directors (except in bankruptcy).
2. Preemptive rights to purchase new shares of stock |
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Definition
| What rights do common shareholders have that preferred shareholders do not? |
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Term
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Definition
| The act of calling back a stock. |
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Term
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Definition
| A fixed dividend amount authorized by a company's board of directors and received by preferred stockholders. |
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Term
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Definition
| a tax-free exchange of one annuity contract for another, one life insurance policy for another, or one life insurance policy for an annuity. The contracts DO NOT have to be issued by the same company |
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Term
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Definition
| Annual fee deducted quarterly from a mutual fund's assets to cover distribution costs, e.g., selling, mailing, printing. An operating expense. |
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Term
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Definition
| Qualified defined contribution plan offering employer-matched contributions. |
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Term
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Definition
| qualified plan for tax-exempt, non-profit organizations. |
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Term
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Definition
| education savings plans offer tax-deffered growth and tax-free distributions at the federal level for qualified educational expenses. |
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Term
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Definition
| a neat trick under IRS tax code allowing people to take money from retriement plans including annuities without paying penalties. |
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Term
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Definition
| diversification formula for a fund advertising itself as "diversified". |
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Term
| In a diversified corporation, 75% of the the portfolio must have no more than 5% of the assets invested in any one security, and no more than 10% of a company's outsnding shares may be owned. |
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Definition
| What does the 75-5-10 stand for in the 75-5-10 Rule? |
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Term
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Definition
| Another name for a registered representitative or agent. |
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Term
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Definition
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Term
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Definition
| mutual fund shares sold witha front-end sales load / charge. Lower annual expenses than other shares. |
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Term
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Definition
| Large institutional investors, and individuals meeting certain income or net worth requirements allowing them to participate in a private placement or hedge funds. |
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Term
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Definition
| the interest that the buyer ofa debt security owes the seller. |
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Term
| Accumulation Stage / Period |
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Definition
| the period during which contributions are made to an annuity. |
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Term
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Definition
| what the purchaser of an annuity buys during the pay-in or accumulation phase, an accounting measure representing a proportional share of the seperate account during the accumulation / deposit stage. |
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Term
| Adjustable Rate Preferred Stock |
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Definition
| preferred stock whose dividend is tied to another rate, oftehn the rate pain on T-bills. |
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Term
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Definition
| earned income plus passive income, portfolio income, and capital gains. The amount upon which we pay income tax. |
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Term
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Definition
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Term
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Definition
| 1. the securities regulator of a particular state 2. a person or entity authorized by the courts to liquidate an estate |
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Term
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Definition
| American Depository Receipt / Share. A foreign stock on a domestic market. i.e. Toyota and Nokia |
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Term
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Definition
| What is the added risk of owning foreign stock on a domestic market? |
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Term
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Definition
| communications by a member firm directed at a general, uncontrolled audience, e.g., billboard, radio/TV/newspape ads, website. |
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Term
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Definition
| Anyone in a position to influence decisions at a public corporation, including board members, officers, and large shareholders. |
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Term
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Definition
| a debt security issued by an agency authorized by the federal government but not directly backed by the federal government. |
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Term
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Definition
| a securities transaction in which the broker-dealer acts as an agent for the buyer or seller, completing the transaction between the customer and another party. |
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Term
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Definition
| an individual representing a broker-dealer or issuer in effecting / completing transactions in securities for compensation. |
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Term
| Agreement Among Underwriters |
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Definition
| a document used by an underwriting syndicate bringing an issue of securities to the primary market. This document sets forth the terms under which each member of the syndicate will participate and details the duties and responsibilites of the syndicate manager. |
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Term
|
Definition
| Assumed Interest Rate. Determined by an actuary, representing his best estimate of the monthly annualized rate of return from the separate account. Used to determine value of annuity units for annuities and death benefit for variable life contracts. |
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Term
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Definition
| A type of underwriting in which the syndicate will cancel the offering if a sufficient dollar amount is not raised as opposed to being responsible for the unsold shares. |
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Term
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Definition
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Term
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Definition
| a private, not-for-profit corporation that handles roughly 20% of all securities trades in the U.S. A secondary market. |
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Term
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Definition
| tax computation that adds certain tax preferance items back into adjusted gross income. |
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Term
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Definition
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Term
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Definition
| a broker-dealer's annual compliance meeting that is mandatory for principals and registered representatives. |
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Term
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Definition
| a formal statement issued by a corporation to the SEC and shareholders discussing the company's results of operations, challenges / risks facing the company, any lawsuits again the company, etc. |
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Term
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Definition
| A person who receives an annuity contract's distribution. |
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Term
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Definition
| the process of changing the annuity contract from the payin or accumulation phase to the pay out or distribution phase. |
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Term
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Definition
| A contract between an individual an an insurance company that generally guarantees income for the rest of the individual's life in return for a lum-sum or periodic payment to the insurance company. |
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Term
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Definition
| what the annuitant holds during the pay-out phase. |
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Term
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Definition
| the increase in an asset's value that is not subject to tax until realized. |
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Term
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Definition
| Taking advantage of the disparity of two things. i.e. Buying stock in a small company when it is about to be bought out by a big company |
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Term
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Definition
| Settling a dispute without actually going to court |
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Term
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Definition
| the decision rendered through FINRA arbitration |
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Term
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Definition
| the higher price in a quote representing what the customer would have to pay / what the deal is asking the customer to pay. Also called Offer / Offered. |
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Term
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Definition
| something that a corporation or individual owns, e.g., cash, investments, accounts receivable, inventory, etc. |
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Term
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Definition
| maintaining a percentage mix of equity, debt, and money market investments, based either on the investor's age (strategic) or market expectations (tactical) |
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Term
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Definition
| a registered representative or principal of a FINRA member firm |
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Term
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Definition
| the NYSE, for example, where buyers and sellers simultaneously enter competitive prices. Sometimes called a double auction market because buying and selling occur at the same time. |
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Term
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Definition
| number of shares a company is authorized to issue by its corporate charter. Can be changed by a majority vote of the outstanding shares. |
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Term
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Definition
| a feature offered by mutual funds allowing investors to automatically reinvest dividend and capital gains distributions into more shares of the fund, without paying a sales charge. |
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Term
|
Definition
| a method of figuring cost basis on securties for purposes of reporting capital gains and / or losses. |
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Term
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Definition
| mutual fund shares charging a load only when the investor redeems / sells the shares. Associated with contingent deferred sales charges. |
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Term
|
Definition
| pre-dating a letter of intent for a mutual fund in order to include a prior purchase in the total amount stated in the letter of intent. |
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Term
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Definition
| a violation in which a market maker fails to honor a published firm quote to buy or sell a security at a stated price. |
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Term
|
Definition
| a commission / sales fee charged when mutual fund or variable contracts are redeemed. Associated with B-shares and, occassionaly, C-shares. |
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Term
|
Definition
| a fund that maintains a mic of stocks and bonds at all times. |
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Term
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Definition
| a financial statement of a corporation or individual showing financial condition (assets vs. liabilities) at a particular moment in time. |
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Term
Assets - Liabilties = Shareholders Equity
OR
Assets = Liabilities + Shareholder's Equity |
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Definition
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Term
|
Definition
|
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Term
|
Definition
| money-market security that facilitates importing / exporting. Issued at a discount from face-value. A secured loan. |
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Term
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Definition
| the most severe sanction that FINRA can impose on an individual, effectivly ending his / her career. |
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Term
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Definition
| a way of measuring bond yields or other percentages in the financial industry. |
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Term
|
Definition
| 2% equals how many basis points? |
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Term
|
Definition
| the price at which a debt security can be bough or sold, based on the yield. |
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Term
|
Definition
| an investor who takes a position based on the belief that the market or a particular security will fall. They profit when stocks go down. |
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Term
|
Definition
| a market for stock or bonds in which prices are falled and / or expected to fall. |
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Term
|
Definition
| an unregistered bond that pays principal to the bearer at maturity. Bonds have not been issued in this way for over two decades, but they still exist in the secondary market. |
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Term
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Definition
| the one who benefits. Person to whom an insurance policy pays benefits. |
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Term
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Definition
| a type of underwriting leaving the syndicate at no risk for unsold shares, and allowing them to keep the proceeds on the shares that were sold subscribed to. |
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Term
|
Definition
| a way of measuring the volatility of a security or portfolio compared to the volatitily of the overall market. |
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Term
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Definition
| another way of referring to beta |
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Term
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Definition
| what a dealer is willing to pay to a customer who wants to sell. |
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Term
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Definition
| a fund that can't decide if it wants to be a growth fund or a value fund. |
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Term
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Definition
| stock in a well established company with proven ability to pay dividends in good economic times and bad. |
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Term
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Definition
| state securities law, tested on the the Series 63 exam |
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Term
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Definition
| a short term municipal debt security backed by the proceeds of an upcoming bond issue. Often found in tax-exempt money market funds. |
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Term
|
Definition
|
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Term
|
Definition
| a mutual fund with an objective of providing income while minimizing capital risk through a portfolio of - get this - bonds |
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Term
|
Definition
| 1% of a bond's par value. Equals to $10. |
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Term
|
Definition
| an evaluation of a bond issue's chance of default published by companies much as Moody's, S&P, and Fitch. |
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Term
|
Definition
| a security maintained as a computer record rather than a physical certificate. All US treasuries and many mutual funds are issued in this manner. |
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Term
|
Definition
| any location identified by any means to the public or customers as a location at which the member conducts an investment banking or securities business. |
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Term
|
Definition
| a discounted sales charge or volume discount on mutual fund purchases offered on A-shares at various levels of investment. |
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Term
|
Definition
| preventing an investor from achieving a breakpoint. A violation. |
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Term
|
Definition
| An index such as the S&P 500 or the Value Line Composite Inc that represents companies from many industries. |
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Term
|
Definition
| an individual or firm that charges a commission to execute securities buy and sell orders submitted by another individual or firm. |
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Term
|
Definition
| a person or firm in the business of completing transactions in securiteis for the accountsof others (broker) or its own account (dealer). |
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Term
|
Definition
| interest rate that broker-dalers pay when borrowing on ehalf of margin customers |
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Term
|
Definition
| an investor who takes a position based on the belief that the market or a particular security will rise. Buers of stock and call options are bullish. |
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Term
|
Definition
| a market for stocks or bonds in which prices are rising and / or expected to rise. |
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Term
|
Definition
| OTC stocks too volatile and low-priced for NASDAQ |
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Term
|
Definition
| a progression of expansions, peaks, contractions, troughs, and recoveries for the overall economy. |
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Term
|
Definition
| the risk that the company whose stock or bond you own will not be successful as a business. I.e. competition, poor management, obsolete products... |
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Term
|
Definition
| often called "level load" because of the high 12b-1 fee. Usually involve no front-end load, sometimes have a contingent deffered sales charge for 1 to 1.5 years. Appropriate for shorter term investing only. |
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Term
|
Definition
| a contract that gives the holder the right to buy something at a stated exercise price. OR to buy. |
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Term
|
Definition
| the price paid and received on a call option. Or the amount aove the par value paid by the issuer to retire a bond. |
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Term
|
Definition
| the period during which a secuirty may not be called or bought by the issuer, usually lasting 5 years or more. |
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Term
|
Definition
| a security that may be purchased by the issuer as of a certain date. |
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Term
|
Definition
| Do the owners of common stock have a right to earnings and dividends? |
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Term
Decleration - March 16
Payable Date - April 15
Record Date - March 31
Ex Date - March 29 |
|
Definition
March 16 - Equity Office Properties trust, a publicly held office building owner and manger, has announced today that its Board has declared a first quarter cash dividend in the amount of $0.50 per common share. The dividend will be paid on Friday 15 April 2005, to common shareholders of recrd at the close of business on Thursday 31 March 2005.
What is the declaration date, payable date, record date, and ex-date? |
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Term
| the US dollar should be weak |
|
Definition
| Would the owner of an ADR (foreign stock) prefer for he US dollar to be weak or strong when converting currency? |
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Term
| Annual Dividend / Market Price = Yield |
|
Definition
| How do you calculate Yield? |
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Term
|
Definition
| If the dividend paid on XYZ common stock remains stable while the market price falls, current dividend yield will increase, decrease, or remain stable? |
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Term
| legend or restricted stock |
|
Definition
| What is another name for private placement securities? |
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Term
|
Definition
| firm commitment underwriting for a rights offering |
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Term
| Quite Period, Cooling off period, Effective Date |
|
Definition
| What are the three stages of underwriting? |
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Term
|
Definition
| What happens during the quite period of underwriting? |
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Term
| sales are confirmed and final prospectus is delivered. |
|
Definition
| What happens during the effective date of underwriting? |
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Term
|
Definition
| Word Association: auction |
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Term
|
Definition
| Word Association: specialist |
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|
Term
| It means they are ready to BUY 100 shares at $20.00 or SELL 100 shares at $20.11 |
|
Definition
| What does it mean if a dealer says their market maker quote is 20.00-20.11? |
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Term
|
Definition
Indicitate which market the following belong to:
1. NASDAQ
2. OTC transaction of NYSE
3. NYSE
4. Direct institutional trading i.e. INSTINET |
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Term
| Current Yield = Annual interest / bond price |
|
Definition
|
|
Term
|
Definition
| Do rising interest rates indication inflation or deflation? |
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|
Term
| yields rise and prices of outstanding bonds drop |
|
Definition
| What happens to bonds during inflation? |
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|
Term
AAA - Highest
BBB - Lowest |
|
Definition
| What is the highest and lowest investment grade rating for S&P? |
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|
Term
Highest - Aaa
Lowest - Baa |
|
Definition
| What is the highest and lowest investment grade rating for Moody's? |
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Term
| Par / Conversion Price = # of common shares |
|
Definition
|
|
Term
|
Definition
| If a bond is convertible into 25 shares of IXR common stock, and IXR is trading @ 50, what is the bond's price at parity? |
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Term
|
Definition
| If a bond is priced at 102 3/8, how much does the bond cost in dollars and cents? |
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Term
| 7.92% yield / 792 basis points |
|
Definition
| What is the yield and basis points of a bond trading at 7.92 basis. |
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Term
|
Definition
|
|
Term
|
Definition
| What is the minimum denomination for a T-bill, T-note, or T-bond? |
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Term
|
Definition
| Treasuries have no _______ risk, but do have various levels of ________ risk. |
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Term
|
Definition
| Zero coupons allow investors to avoid ________________________. |
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Term
|
Definition
| Which securities are backed by the full faith and credit of the U.S. government? |
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|
Term
mortgage backed securities
prepayment risk |
|
Definition
| Ginnie, Freddie, and Fannie all issue ____________ and all carry _______. |
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|
Term
Nonmarketable - EE, HH, I bonds
Marketable - T-bills, T-notes, T-bonds, and Treasury strips |
|
Definition
Which group is nonmarketable and which can be sold on the secondary market?
1. EE, HH, and I-bonds
2. T-bills, T-notes, T-bonds, and Treasury strips |
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Term
|
Definition
| Who can charge taxes on a Resident of Topeka, KS who buys a Toledo, Ohio municiple bond? |
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Term
|
Definition
| Who can charge taxes on a resident of Topeka, KS who buys a Wichita, KS municple bond? |
|
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Term
|
Definition
| Who can charge taxes on a resident of Topeka, KS who buys a Topeka, KS municiple bond? |
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Term
| The issuer's (ABT) nominal yield is 4 3/4 paid semiannually. The bond will mature in 2017 unless the issuer calls it back for 103 1/8% in 2012. |
|
Definition
What does the following mean:
ABT 4 3/4S debentures of '17 callable @ 103 1/8 in '12 |
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Term
|
Definition
| Early tranches have the most |
|
|
Term
| Planned Amortization Class |
|
Definition
|
|
Term
| Targeted amortization class |
|
Definition
|
|
Term
|
Definition
| Which has more risk? PACs or TACs? |
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|
Term
| Real Estate Mortgage Investment Conduit |
|
Definition
|
|
Term
|
Definition
| offers mortgage pools seperated into different risk class as opposed to maturity classes |
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Term
|
Definition
| If Orville Olmeyer has an investment that grows 6% while the CPI rises 3%, what is Orville's real rate of return? |
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Term
|
Definition
| Do bond prices rise or fall during an inflationary period? |
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Term
|
Definition
| Which is better for exports: a weak dollar or a strong dollar? |
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Term
|
Definition
| Do high or low interest rates attract foreign investment? |
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Term
|
Definition
| Monetary policy makers can not _________ |
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Term
|
Definition
An investor purchases a bond for more than its par value. Therefore:
A. the investor's nominal yield will be lower than the current yield
B. the investor's yield to maturity will be higher than the nominal yield
C. the investor's current yield will be the same as the nominal yield
D. the investor's yield to maturity will be lower than the current yield |
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Term
|
Definition
What is true of the difference between BID and ASK prices for secondary market transactions?
A. customers sell at the ask price, buy at the bid price
B. customers buy at the ask price, sell at the bid price |
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Term
|
Definition
| the risk that a callable bond or preferred stock will be forcibly called when interest rates fall. |
|
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Term
|
Definition
| a fancy word for money. When a corporation raises cash by offering stocks / bonds to investors on the primary market. |
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Term
|
Definition
| the rise in an asset's market price. The objective of a "growth stock investor". |
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|
Term
Capital Gain
i.e. If you sell a stock that you bought for $10 for $22, you have a capital gain of $12. |
|
Definition
| the amount by which the proceeds on the sale of a stock or bond exceed your cost basis. |
|
|
Term
| Capital Gains Distribution |
|
Definition
| distribution from fund to investor based on net capital gains realized by the fund portfolio. Holding period determined by the fund and assumed to be long-term. |
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|
Term
Capital Gain
i.e. If you sell a stock that you bought for $10 for $22, you have a capital gain of $12. |
|
Definition
| the amount by which the proceeds on the sale of a stock or bond exceed your cost basis. |
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Term
|
Definition
| loss incurred when selling an asset for less than the purchase price. |
|
|
Term
|
Definition
| the make-up of a corporation's financing through equity (stock) and debt (bonds) securities |
|
|
Term
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Definition
| an investment account in which the investor must pay for all purchases no later than 2 business days following regular way settlement. Not a margin account. |
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Term
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Definition
| money paid to shareholders from a corporation's current earning or accumulated profits. |
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Term
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Definition
| a security that can readily be converted to cash e.g. T-bills, CDs, and money market funds |
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Term
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Definition
| same-day settlement of a trade requireing prior broker-dealer approval. Not the regular way of doing things. |
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Term
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Definition
| the value of an insurance policy that may be tapped by the policyholder through a loan or a surrender. |
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Term
| CEO / Corporate Executive Officer |
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Definition
| Individual ultimately responsible fora corporations results. |
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Term
| Corporate Executive Officer |
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Definition
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Term
| CFO / Chief Financial Officer |
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Definition
| Individual in charge of a corporation's financial activities. |
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Term
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Definition
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Term
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Definition
| a privilege offered by mutual funds, especially oney market funds, by which investors can automatically redeem shares by writing checks. |
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Term
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Definition
| the separation that is supposed to exist between the investment banking department and the traders and registered representatives in order to prevent insider trading violations. |
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Term
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Definition
| excessive rading in terms of frequency and size of transactions designed o generate commissions without regard for the customer. |
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Term
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Definition
| an investment company that offers a fixed number of shars that are not redeemable. Shares are traded on the secondary market at a price that culd be higher or lower than NAV. |
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Term
| CMO / Collateralized Mortgage Obligation |
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Definition
| A complicated debt security that few people actually understand. Based on a pool of mortgages or a pool of mortgage-backed securities. Pays interest monthly but returns principle to one tranche at a time. |
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Term
| Collateralized Mortgage Obligation |
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Definition
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Term
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Definition
| FINRA method of resolving disputes (usually money) in the securities business. All decisions are final and binding on all parties. |
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Term
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Definition
| FINRA system for enforcing member conduct rules |
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Term
| Collateral Trust Certificate |
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Definition
| a bond secured by a pledge of securities as collateral. |
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Term
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Definition
| allows investors to combine purchases of many funds within the mutual fund family to reach a breakpoint / reduced sales charge. |
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Term
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Definition
| a short-term unsecured loan o a corporation. Issued at a discount from the face value. |
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Term
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Definition
| A service charge an agent earns for arranging a security purchase or sale. |
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Term
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Definition
| the principals and supervisors of a broker-deal responsible for making sure the firm adhere to SEC, exchange, and SRO rules. |
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Term
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Definition
| an SRO's rules for member conduct that, if violated, may lead to sanctions and fines. |
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Term
| Fixed annuities, whole life / term life, bank CDs insured by the FDIC, and Commodities futures contracts |
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Definition
| What types of investments are NOT securities? |
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Term
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Definition
| You will likely receive a statutory disqualification if you have received a felony or securities-related misdemeanor within the last ________ years. |
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Term
1. manage accounts
2. sell he services of the firm
3. determine recommendations for clients
4. make recommendations to clients
5. supervise those who do any of the above |
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Definition
| Representatives of an advisory firm do what 5 things? |
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Term
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Definition
| What percentage of a companie's total assets must be tied up in security investments in order for the company to be considered an investment company? |
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Term
1. Management Company
2. Face Amount Certificate Company
3. Unit Investment Trust |
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Definition
| What are the three types of investment companies? |
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Term
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Definition
| After how many years of being out of a representative position are you required to retake the series 6? |
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Term
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Definition
| What form do you fill out to be a registered agent and what form do you fill to be unregistered? |
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Term
| martial status and education |
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Definition
| What 2 things do not need to be disclosed on your U4? |
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Term
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Definition
| Does an agent's registration transfer from one firm to another? |
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Term
| CRD / Central Registration Depository |
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Definition
| Where is the place that maintains records on all persons registered with FINRA? |
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Term
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Definition
| persons who supervise registered representatives, review correspondence and other communications going out to investors, approve every account, initial order tickets, handle written customer complaints, and make sure there's a written supervisory manual for the office to use to stay in compliance with regulations. |
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Term
| the fees are based on the number of registered representative employed by the firm and the number of branch offices the firm has |
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Definition
| How does FINRA determine the amount that member firms must pay in fees? |
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Term
| the regulatory element would be based on his initial registration date |
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Definition
| What would happen if a registered rep left his firm, and then re-associated with another firm 15 months later. When would he need to complete the regulatory element? |
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Term
| Anything about 8.5% of the public offering price |
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Definition
| What is considered an excessive sales charge? |
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Term
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Definition
| Are cash dividends taxable? |
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Term
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Definition
| Which gains are taxed at a higher rate? Short term or long term? |
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Term
| There is a 60 day window - 30 days before and after |
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Definition
| How many days after realizing a loss, must you wait to repurchase the companies stock? |
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Term
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Definition
| An accounting method used in selling stock to determine capital gain or loss whereby the thing we just sold is the thing we bought first. |
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Term
Dead People
Minor Children
Individuals declared mentally incompetent by the court |
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Definition
| What three types of persons are not LEGAL persons? |
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Term
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Definition
| How long is an estate open for? |
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Term
1. Funderal / administrative expenses
2. Debts owed at the time of death
3. Any charitable gifts made after death
4. the marital deduction |
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Definition
| What four things can reduce the value of the gross estate? |
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Term
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Definition
| What is the lifetime credit for estates to avoid taxes? |
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Term
1. Gifts made to a spouse
2. Gifts that do not exceed current exclusion amount
3. Paying tuition costs for someone else - payable directly to the institution
4. Paying medical costs for someone else - payable directly to the care provider
5. Political, chartiable donations |
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Definition
| What are the 5 instances that no gift taxes are due? |
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Term
1. Faster, less costly way to transfer property upon death
2. Elliminate challenge to estate
3. Keep transfer of property private
4. Reduce amount of estate taxable to heirs |
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Definition
| What are 4 advantages to a trust? |
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Term
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Definition
| What type of municiple bonds are subject to AMT? |
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Term
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Definition
| Mr. Jeffries sets up a trust for the benefit of his adult daughter, Amber from which his wife may withrdaw only if necessary. Threfore, income on the trust will be taxed to: |
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Term
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Definition
| Darlene has made the following gifts for Tax Year 2009: a $14,500 check to her brother, Virgil, for tuition at a state college, $8,000 to her husband, Cletus, for a second hand four-wheel-drive pickup truck, $17,000 to her girlfriend, Becky Sue, and a $15,000 check to her mother's primary physician. How much is subject to gift taxes? |
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Term
| $10,000 of long-term gain |
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Definition
| One of yoru clients, Rachel, has inherited securities through her Aunt Jessica's will. Aunt Jessica purchased 1,000 shares of Harley-Davidson for $5,200 twenty years earlier. On the day Aunt Jessica died, the fair market value of Harley-Davidson common stock was $30 per share. If Rachel sells all shares four months later for $40 per share the tax implications will be: |
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Term
| There is no effect on this account because she purchased the shares with her IRA. |
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Definition
| Within her IRA, Maria Mathers purchased 1,000 shares of ABC @ 14 on January 12th, 2007. The nex day, she also purchased 1,000 shares of XYZ @15. On January 11th, 2009, se sells all her ABC stock for $19 per share and all her XYZ stock for $7 per share. What are her tax implications? |
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Term
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Definition
Which of the following statements is / are accurate concerning wash sale rules?
I. It is illegal to sell common stock at a loss and then repurchase it within 30 days
II. If a loss is disallowed due to wash sale rules, the investor adds the loss to the cost basis on the re-purchase
III. An investor may sell MSFT ommon stock at a loss and purchase MSFT preferred stock within 30 days and still clain the loss on the common stock
IV. Wah sale rules do not apply to Traditional IRA or Roth IRA |
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Term
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Definition
| Melody has invested $10,000 into the Argood Aggressive Growth Fund and reinvested dividends of $2,000. What is her cost basis? |
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Term
| LIFO or Last-in, First-Out |
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Definition
| When dealing in annuities, this term refers to the fact that the IRS considers all of the money out out to be the earning portion first. |
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Term
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Definition
In a simplified employee pension (SEP-IRA) who makes the contributions?
1. Employee
2. Employer
3. Both |
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Term
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Definition
| What is the maximum length of time it can take an employee to become fully invested? |
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