Finals- SIE Flashcards
An investor who accumulates 5% or more in common stock of a registered issuer must file what type of form with the SEC?
13D
within 10 business days of the date that the 5% threshold was passed.
A Municipal Finance Professional residing in NYC gives $100 to an election for the Mayor of Boston. Is that ok?
NO! There is a violation of MSRB rule G-37 because he is not eligible to vote in BOSTON. An MFP may contribute up to $250 to an elected official’s campaign they are entitled to vote for.
The components of M-1
M-1 is a measure of the money supply, this is cash in circulation and demand. A Super NOW account is also included in this because it is a type of checking account that pays interest.
What types of plans are covered under ERISA?
ERISA rules cover retirement plans to protect employees from employer mismanagement of pension funds. It includes: Profit Sharing Defined contribution plans Defined benefit tax deferred annuities Payroll deduction savings plans ***FEDERAL GOV'T PLANS NOT INCL.
What is true regarding Mutual Fund Offerings?
Selling group members CANNOT discount mutual funds shares on their own. Selling group members CANNOT sell mutual fund shares for more than the POP.
Barring Extension, under REG T -payment for securities must be received no later than:
4 days after the trade date. The pay date is S + 2 = settlement +2 more days to collect payment.
Business Continuity Plan
Each member firm must prepare this and provide to customers every 36 months after the account is opened. A plan that addresses the possibility of significant business disruptions and how the member plans to respond to the event of increasing severity. A summarized version must be provided at account opening.
Which order guarantee’s execution but not price?
Buy Stops and Sell stops - if a stop order is elected it becomes a market order to be filled at the first price available.
Which order’s guarantee price but not execution?
Buy Limits and Sell Limits - the order is only elected at a specified price but may expire.
A foreign broker dealer, not registered with the SEC is permitted to deal with clients in the US under what circumstances?
ONLY if the clients are major institutional investors. Rule 15a-6 is intended to permit foreign BD’s to engage in limited activities in the US without registering with the SEC.
Serial Bond Issue
Issued on the same date with different maturity dates.
What has been standardized for listed options contracts?
Contract size ie. 100 shares
Expirations Date - 11:59PM on 3rd friday on the motnh
Strike price intervals - generally 5 point intervals
Expiration time - midnight, 3rd friday.
Breakpoint sales charge calculation
ask = Bid /100%- Sales Charge
A registered rep needs to do CE every….
three years after registration and thereafter
RR and member firm go to arbitration, if they are dissatisfied how would they appeal?
NO APPEAL is permitted because any decision reached in arbitration is binding.
On a “transferred and shipped” order, before execution what should the RR verify?
Ascertain the location of the stock and that they can be delivered in 3 business days. After that is verified the trade can be placed.
When do mortgage bonds pay interest and what are they considered?
Semi-annually pay interest and they are a secured debt.
A new Municipal bond investor seeking info about an issuer’s financial condition would examine what?
The official statement. This is the disclosure document similar to a prospectus for new municipal issues.
Prospectuses are only required for non-exempt new issues.
The SEC administrates all “Acts” except this one?
The uniform securities Act - this is known as “Blue Sky” state law and is adopted by the state.
The SEC does however admin Securities Acts of 33 and 34, Trust Indenture act of 39, and Investment Company act of 1940.
What is true of Variable Annuity Contracts?
The Purchaser bears the investment risk and they are non-exempt issues. Fixed annuities are opposite, where the issuer bears the investment risk.
