green light

Question 1

close out

transmittal

Answer 1

When a close-out is re transmitted to a selling dealer who owes the securities the date the close-out may be executed is extended by one business day. Subsequent close-outs transmittals do not extend the period any additional days.
Must be completed in 10 business days
buyer may grant a 10 business day extension
can not exceed 20 business days total

Question 2

what is a repruchase agreement

Answer 2

buying securities with seller agreeing to repurchase

Question 3

How does the fed adding money to the system affect interest rates

Answer 3

they trend lower

Question 4

The term foreign exchange rate can BEST be defined as the:

Answer 4

Price the currency of one nation trades in relation to the currency of another country

Question 5

moodys rating in decreasing

Answer 5

the more number of letters following the higher
Aaa is higher than aa which is higher than a1
aa1 is higher then a1

Question 6

IF the fed fund rate is increasing

Answer 6

the fed is tightening money

Question 7

Actions if fed is tightening money

Answer 7

sell securities so money supply declines

Question 8

IF an issue has a call and is prerefunded what will happen

Answer 8

it will be called on the first call date.

Question 9

spread of govt vs corporate bonds

Narrowing yield

Answer 9

as yields on govt securities increase that means there price is decreasing.
As yields on corporate bonds decreases as prices increase
this narrows the yield between the two

Question 10

paid first under a gross revenue pledge?

Answer 10

Debt service expenses

Question 11

capital risk
same coupon
which bonds to buy

Answer 11

risk investment is lost

bonds trading at a premium

Question 12

Interest rates

Long term bonds

Answer 12

price

Question 13

Interest rates

short term bons

Answer 13

yield

Question 14

The Federal Reserve is considering pursuing a tight money policy.

Answer 14

raises interest rates
Bond prices and the stock market will fall
the dollar value will rise

Question 15

selling group

Answer 15

gets total take down minus syndicate amount

they get the selling concession

Question 16

Undivided account

Redistribution of unsold shares

Answer 16

The original % of the original allocation is applied to the unsold shares.
I.e. If I was allocated 25% and then I am allocated to the new pool of unsold shares it will be 25% again.

Question 17

markup clients

Answer 17

On a confirmation statement, dealers are required to disclose any markup or markdown it acts in a principal capacity with a non-institutional customer. The calculation should be based on the prevailing market price as defined under MSRB Rule G-30. The markup or markdown should be expressed as a total dollar amount and as a percentage of the prevailing market price.
Not required for institutional clients.

Question 18

A dealer-to-dealer transaction on a when, as and if issued transaction
confirmation

Answer 18

The next business day