EJ - Acronyms Flashcards
1
Q
FSPend
Identify
“FSPEND”
A
- Field Supervision Pending
- FSPend is a notification generated by the Field Supervision Director asking for additional information to provide clarity on a particular transaction.
- Contact your Field Supervision Director prior to responding to an FSPend should you have any questions.
2
Q
Identify
“ACH Transfer”
(AKA Electronic Funds Transfer)
A
Automated Clearing House is a way to transfer money electronically and securely between accounts at different financial institutions.
3
Q
Identify
“Letter of Intent”
A
- LOI is signed by the purchaser of MFs that states the purchaser will purchase a specific amount of shares over a 13-month period.
- By agreeing to the purchase, the purchaser will be entitled to a reduced sales commission charge.
- The letter may be backdated 90 days from the initial purchase.
- If the investor fails to meet the stated sum, the reduced sales charges will be reverted back to the normal sales charges and the investor must pay the sales charge adjustment.
4
Q
Identify
“ROA”
A
- Rights of accumulation (ROA) are rights that allow a mutual fund shareholder to receive reduced sales commission charges when the amount of mutual funds purchased plus the amount already held equals a rights of accumulation (ROA) breakpoint.
5
Q
Identify
“Money Due”
A
- Money due is the money that the client will be receiving in the near future.
- For example, money becomes due when a CD matures or life insurance pays out the death benefit.
6
Q
Identify
“Net Asset Value”
A
- The net asset value (NAV) represents the net value of an entity.
- It’s calculated as the total value of the entity’s assets minus the total value of its liabilities.
- Most commonly used in the context of a mutual fund or an exchange-traded fund (ETF), the NAV represents the per share/unit price of the fund on a specific date or time.
- NAV is the price at which the shares/units of the funds are traded (invested or redeemed).
7
Q
Identify
“CUSIP”
(pronounced: Q-SIP)
A
- CUSIP stands for the Committee on Uniform Securities Identification Procedures
- The CUSIP is composed of a 9 alpha-numeric combination of characters which acts as the DNA for the security by identifying the company or issuer and the type of security.
- The following explains what each character represents:
- The first six characters identify the issuer and are assigned alphabetically.
- The seventh and eighth characters—which can be alphabetical or numerical—identify the type of security.
- The ninth and last digit is used as a check digit.
- A check digit is a form of redundancy check used for error detection on identification numbers, such as bank account numbers, which are used in an application where they will at least sometimes be input manually.
8
Q
Identify
“TAP Trip”
A
- Travel Award Program trip
9
Q
Identify
“IPC”
A
Investment Policy Committee
