Chapter 3 Investment Information and Securities Transactions Flashcards

1
Q

Descriptive Information

A

Presents factual data on the past behavior of the economy, the market, the industry the company, or a given investment.

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2
Q

Analytical Information

A

presents projections and recommendations about potential investments based on available current data.

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3
Q

Fair Disclosure Rule

A

a rule requiring senior executives to disclose material information such as earnings forecasts and news of mergers and new products simultaneously to investment professionals and the public via press releases or SEC filings.

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4
Q

Stockholder’s (Annual) Report

A

published yearly by publicly held corporations containing wide range of information, including financial statements, along with summarized statements for several prior years.

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5
Q

Standard and Poor’s Corporations

A

offers a large number of different financial reports and services.

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6
Q

The Value Line Investment Survey

A

one of the most popular subscription services used by individual investors.

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7
Q

Quotations

A

include current price data and statistics on recent price behavior.

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8
Q

Financial Portals

A

are supersites that bring together a wide range of investing features, such as real time quotes, stock and mutual fund screens, portfolio trackers, news, research, and transaction capabilties, along with other personal finance features.

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9
Q

Averages

A

Reflect the arithmetic average price behavior of a representative group of stocks at a given point in time.

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10
Q

Indexes

A

measure the current price behavior of a representative group of stocks in relation to a base value set at an earlier point in time.

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11
Q

Dow Jones Industrial Average

A

made up of 30 stocks selected for total market value and broad public ownership.

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12
Q

Standard and Poor’s Indexes

A

calculated each business day by dividing the sum of the market values of all stocks included in the index market value of the stocks in the base period and then multiplying the resulting quotient by the base value for the respective S&P indexes.

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13
Q

Value Line Composite Index

A

includes the about 1700 stocks in the value line investment survey that are traded on the NYSE, NYSE Amex, and OTC markets.

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14
Q

Bond Yield

A

the return an investor would receive on a bond if it were purchased and held to maturity.

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15
Q

Dow Jones Corporate Bond Index

A

include 96 bonds, 32 industrial, 32 financial, and 32 utility/ telecom bonds.

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16
Q

Stockbrokers

A

account executives, investment executives, and financial consultants- act as intermediaries between buyers and sellers of securities.

17
Q

Full Service Broker

A

offers investors a full array of brokerage services: providing investment advice and information, holding securities in street name, offering online brokerage services, and extending margin loss.

18
Q

Premium Discount Brokers

A

focus primarily on making transactions for customers and charge low commissions and provide limited free research information and investment advice.

19
Q

Basic Discount Brokers

A

online brokers or electronic brokers, are typically deep-discount brokers through which investors can execute trades electronically online vis a commercial service, on the internet, or by phone.

20
Q

Churning

A

causing excessive trading of their clients’ accounts to increase commissions

21
Q

Custodial Account

A

parent or guardian must be part of all transactions.

22
Q

Cash Account

A

the customer can make only cash transactions.

23
Q

Margin Account

A

an account in which the brokerage firm extends borrowing privileges to a creditworthy customer.

24
Q

Wrap Account

A

allows brokerage customers with large portfolios to shift stock selection decisions conveniently to a professional money manager, either in house or independent,

25
Q

Round Lost

A

a 100 share unit.

26
Q

Market Order

A

an order to buy or sell stock at the best price available at the time the investor places the order

27
Q

Limit Order

A

an order to buy at or below a specified price.

28
Q

Stop Order

A

broker tells the market maker to sell a stock when its market price reaches or drops below a specified level.

29
Q

Day Traders

A

buy and sell stocks quickly throughout the day, focused on making quick profits.

30
Q

Mediation

A

an informal, voluntary approach in which you and the broker agree to a mediator, who facilitates negotiations between the two of you to resolve the case.

31
Q

Street Name

A

Brokerage house issues the securities in its own name and holds them in trust for the client.

32
Q

Form 10-K

A

a statement that firms with securities listed on a securities exchange or traded in the OTC market must file annually with the SEC.