9 Flashcards
What is OFAC in charge of?
Maintaining a list of known and suspected terrorists
What do FINRA members not have to maintain regarding account information?
Customer signatures
What do closed-end fund shares sell at?
Below NAV
What percentage of the board of directors members for a mutual fund must be non-interested persons?
40%
What happens with a qualified retirement plan?
Most types of contributions are not taxed until withdrawn
Who uses a prime broker?
Institutional investors
When do cash settlement transactions settle?
The same day as the trade
What are anticipation notes?
Notes that will be paid back from a future source of funds
What type of investment faces more inflationary risk?
Fixed-income investments
What is selling dividends?
When a registered rep encourages the purchase of shares in a fund right before a dividend payment date
What is the real interest rate?
Stated interest rate minus the inflation rate
What type of indicator are stock market prices?
Leading indicators
How do short-term capital gains and long-term capital gains compare?
Short term gains are taxed at higher rates than long term gains
What happens to a registered individual who does not complete continuing education?
They are suspended from their FINRA firm and cannot be paid until their education is complete
How long does shelf registration for seasoned investors last?
3 years
Distributions from Roth IRAs will be subject to a penalty if withdraws within what time?
5 years of the original contribution
What do ERISA rules say?
Investments that are suitable for a retirement account stress the safety of principal
What are examples of marginable securities?
Listed corporate stocks and bonds
What is the compensation for an unregistered hedge fund?
Percentage of AUM + a performance fee based on profits
What is true regarding a mutual fund letter of intent?
- Backdated a maximum of 90 days
- Can cover a maximum of 13 months
What do all mutual funds charge?
An annual management fee
What type of preferred stock moves in price as the price of common stock moves?
Convertible preferred
What is yield to call?
The yield of a callable bond, assuming the bond is held until its first call date
What needs to have occurred for the SEC to set the effective date for a new issue?
Documents have been filed with the SEC
