15 Question Study Guide Flashcards
1
Q
Load
A
Mutual funds commission
2
Q
Cash value
A
Cash available to person who cancels insurance policy
3
Q
Interest on what can be deducted on income taxes?
A
Mortgage
4
Q
Street name security certificates
A
Shows broker’s name rather than client’s name (most likely will show “street name” when going through broker)
5
Q
Yield
A
Return on investment in terms of interest/dividends
6
Q
Which type of stock receives dividends first?
A
Preferred
7
Q
Convertible bonds
A
Can be converted into a certain amount of shares of common stock
8
Q
Debenture bonds
A
Not asset-backed (no collateral), backed by creditworthiness of issuer
9
Q
Secured bonds
A
Backed by collateral
10
Q
Speculative bond
A
Low-rated bond
11
Q
Investment grade bond
A
High-rated bond
12
Q
Churning
A
Excessive trading in client’s account to increase brokerage commissions
