Term
| Automated Customer Account Transfer Service (ACATS) |
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Definition
| automates the transfer process of customer assets from one broker-dealer to another |
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Term
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Definition
| A report summarizing all transactions and positions that a customer has w/a broker-dealer. MUST be issued quarterly, and sometimes monthly |
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Term
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Definition
| The accumulated interest on a bond sincce the last interest pmt date up to, but not including, the settlement date. Generally added to the purchase price of the bond |
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Term
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Definition
| An accounting measure used to determine an annuitant's proportional interest during the accumulation phase. Instead of Share, it's this. |
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Term
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Definition
| A method of assessing taxes on property or goods |
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Term
| Adjusted Gross Income (AGI) |
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Definition
| Income on which an individual computes federal income tax. used as a benchmark for computing most allowable tax deductions. |
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Term
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Definition
| corporate bond on which interest pmts are contingent upon the issuer creating sufficient earnings |
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Term
| American Depositary Receipts (ADRs) |
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Definition
| represent shares of a foreign security that trade in the US. These securities are deposited in a US bank and the receipts trade on US exchanges and the OTC mkt |
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Term
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Definition
| putting money into an account after federal income tax has been deducted |
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Term
| Agent/Broker/Broker-Dealer |
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Definition
| effects txns for customers w/o assuming risk. Act as a middleman. Compensation earned is commission. |
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Term
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Definition
| mutual fund that invests in emerging growth companies that have above avg earnings growth potential. |
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Term
| Assumed Interest Rate (AIR) |
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Definition
| the rate of interest that an insurance company uses to determine that initial payout on a variable annuity |
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Term
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Definition
| an offering that gives the issuer the right to cancel the deal if the underwriting is not fully subscribed |
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Term
| Alternative Minimum Tax (AMT) |
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Definition
| a separate, but parallel income tax system that ensures that individuals pay @ least a min. amt of tax. Individuals are required to pay the greater of their regular income tax or this... |
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Term
| American Stock Exchange (AMEX) |
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Definition
| One of the largest national securities exchanges in the US. Best known for trading exchange-traded funds (ETFs) |
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Term
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Definition
| relinquishing control of a lump-sum of money in return for a guaranteed series of pmts for the life of the contract |
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Term
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Definition
| a contract offered by an insurance company that guarantees the purchaser a stream of income for the life of the contract. Variable & Fixed |
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Term
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Definition
| An acctg measure used to determine the amt of each pmt duringg the annuity payout phase |
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Term
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Definition
| the simultaneous purchase and sale of the same or related securities. designed to take advantage of inefficiencies in the marketplace |
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Term
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Definition
| process for settling securities industry disputes between member firms, members and their RRs, and member firms/RRs and their customers |
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Term
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Definition
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Term
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Definition
| balancing of investment risk by determining the appropriate percentages to allocate to various asset classes. the objective is to achieve the max return for an acceptable level of risk |
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Term
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Definition
| categorizing of investments into various categories (cash equivalents, large co. stocks, small co. stocks, international stocks, corporate bonds, US gov't bonds, etc.) |
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Term
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Definition
| a market in which securities are bought and sold through brokers on the securities exchanges (eg NYSE) |
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Term
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Definition
| the max # of shares that a co. may create under the terms of its corporate charter |
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Term
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Definition
| requires taxes withheld on earned income and investment income if a SSN is not provided by the taxpayer |
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Term
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Definition
| a financial report representing the value of a company's assets, liabilities, and owners' equity on a specific date |
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Term
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Definition
| mutual fund that purchases both stocks and bonds. Objective is to obtain the highest return consisstent w/a low-risk strategy |
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Term
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Definition
| an act that requires financial institutions to maintain records of personal financial transactions & report any suspicious txns to the Financial Crimes Enforcement Network (FinCEN) |
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Term
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Definition
| A check drawn on and accepted by a bank. A source of financing used extensively in international trades |
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Term
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Definition
| Yield Measurement used in the bond market. 1/100 of 1% |
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Term
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Definition
| type of bond where the bondholder's name is neither imprinted on the bond nor on the books and records of issuer |
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Term
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Definition
| the expectation that the market as a whole or individual securities are going to decline |
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Term
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Definition
| occurs when there is a market decline of 20% or more |
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Term
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Definition
| an underwriting arrangement whereby investment bankers act in an agency capacity, and do not accept the risk of owning unsold securities. |
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Term
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Definition
| an indication or willingness to purchase a security. The price a client can sell a security at in the mkt |
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Term
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Definition
| a well-established company having a long history of stable earnings and dividend payments |
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Term
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Definition
| a group of individuals that carry out tasks that are spelled out in a firm's corporate charter. 75%/25% |
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Term
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Definition
| A debt security whereby an issuer promises to repay bondholders P&I. Issuers are Corporations, Municipalities, and the Fed. Gov't |
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Term
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Definition
| security issuance w/o physical certificates. evidence of ownership is maintained on the books & records kept by a central agency |
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Term
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Definition
| a measure of the net worth/share of common stock. an indication of the value of a company in liquidation |
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Term
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Definition
| a schedule by which mutual fund investors are offered a reduced sales charge based upon the amt of $$ invested |
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Term
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Definition
| Violation of the FINRA's Conduct Rules. intentional act of a RR where $$ invested in a mutual fund by a custommer is just below the amt needed to qualify for a reduced sales charge |
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Term
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Definition
| a benchmark that is designed to reflect the movement of the overall market (eg S&P 500) |
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Term
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Definition
| issued by a bank which a BD purchases in bulk to obtain a better Rate of Interest. |
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Term
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Definition
| the expectation or outlook that the market as a whole or for individual securities is going to rise |
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Term
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Definition
| Expansion, Peak, Recession, Trough |
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Term
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Definition
| an option contract giving the holder the right to buy the underlying security at a specific price, until a specific date |
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Term
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Definition
| the price exceeding par value that a bond issuer must pay a bondholder for redeeming her bonds prior to maturity |
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Term
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Definition
| provision stating that the issue cannot be called for a certain period of time |
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Term
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Definition
| a feature in a bond that allows the issuer to redeem its bonds prior to maturity |
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