10th Set Flashcards
Are contributions to a 529 plan tax deductible?
No
Sovereign debt
Debt issued by national governments >Example: US treasuries
Eurodollar bond
Issued by foreign entity but denominated in USD
Tender offers must be open for how many business days from the first publication of the offer?
20 business days “If the terms are changed, the offer must be open for at least 10 business days from the date of change but never for less the original 20 business days.”
T/F: Tatical asset allocation attempts tp capitalize on short term market swings
True short term swings “Tactical asset allocation, which attempts to capitalize on short-term market swings, is a market timing strategy.”
The term high-yield bond would apply to a bond with a Moody’s rating of ____
Ba >same as S&P BB rating >below rating of “High-yield bonds are those whose ratings fall below investment grade. Investment grade is the top four. Using Moody’s descriptions, ratings run from Aaa to Aa to A to Baa to Ba to B and then below. The first rating below the top four is Ba. That is equivalent to a BB rating from Standard & Poor’s (but the question asks specifically about Moody’s).”
On a muni bond trade is the ID of the contra broker needed on the confirmation?
No >Not needed >But have to state that name is available upon request
A municipal firm acts in an agency capacity to execute a purchase order for a customer. All of the following are required to be on the customer’s confirmation of purchase except A) a description of the securities. B) the identity of the contra broker. C) the capacity of the broker-dealer. D) the settlement date.
B) ID of Contra broker >Don’t need contra broker on muni confirmation >Just have to say name is available upon request “The identity of the contra party (the other side of the trade) is not necessary, as long as it is stated that the name is available upon request.”
Are jumbo CDs part of the money market or capital market
money market
T/F: partial execution is allowed in an immediate or cancel (IOC) order type
True Immediate or cancel doesn’t have to be filled all the way
Are contributions to 529 plan (education savings) tax deductible?
No
T/F: Tactical asset allocation is a market timing strategy
True Tactical asset allocation, which attempts to capitalize on short-term market swings, is a market timing strategy.
A bond below what S&P rating would be considered speculative
BBB >BBB is the lowest “investment grade” >below that is speculative
A summary statement of all interest and dividends credited to a customer’s account must be sent to the primary accountholder each year in ____
January >Firms send IRS Form 1099 in Jan >Customer uses for tax return
YTM is another word for
BASIS FUCKING BASIS!!!!!!!
