General Flashcards
If an investor is long a stock, what option strategy generates the most income?
Writing covered calls
Call protection is most advantageous to bondholders when
Bond prices are rising, and interest rates are falling
Regulation Best Interest (BI) has what components?
Disclosure, care, conflicts of interest, and compliance
If the investor is long a stock, what option strategy offers the most protection of profit?
Buying puts
Difference between REITs and DPPs?
REITs don’t pass on losses to the investors (LPs) while DPPs do
What do variable life policies NOT guarantee?
Cash values
If the investor is the writer of an option (short), how does he close his position?
By buying an options contract
What are the highest and lowest yielding CMO tranches?
Z tranche (riskiest) and PAC (least risky)
What’s another term for private placement stock?
Restricted or unregistered stock
Opening and closing a long position
Buy to open and sell to close
Opening and closing a short position
Sell to open and buy to close
How is a REIT taxed?
As a conduit
What does an Exchange traded note usually track?
An index
FinCEN enforces what?
The Bank Secrecy Act
