Important Dollar Amounts, Percentages, and Formulas Flashcards
Exempt from Registration:
Rule 144 – Public resale of restricted and control securities under certain conditions. Rule 147 – Intrastate offerings, Reg A – small issue, Reg D (private placements. Rule 504 – raise up to $10M and sell to up to 35 non-accredited. Rule 506c – purchases to accredited ONLY), and Reg Crowdfunding (raise up to $5M)
Insider Trading penalties
three times the profit made or losses avoided. A BD or RR could be fined up to $2M or three times the profit or loss, whichever is greater. Criminal penalties up to $5M and 20 years in jail (BD three times the damages or $25M, whichever is greater
Maximum 12b-1 fee for a no-load fund
0.25%
maximum 12b-1 fee for loaded fund
1%
maximum sales charge for open-end (mutual fund) company
8.5%
penalty for insufficient IRA distribution after age 73
50%
Municipal Member Firms and elections
Not allowed to contribute. RR allowed to contribute up to $250. Violation for both is two years
Institutional communications apply to any entity with
$50M or more of total assets
SIPC Coverage
$500K per account, including up to $250K in cash
Reg D Family Office must have
$5M in AUM to qualify as accredited investor
A company’s equity or net worth =
assets – liabilities. Accounts receivable are not long term assets
Working Capital =
current assets – current liabilities
Current ratio (used to measure liquidity) =
current assets/current liabilities (eg 2:1 or 1.25:1)
Acid Test ratio (Quick Ratio) =
(current assets – inventory)/current liabilities
Debt ratio (debt-to-equity ratio) measure of long-term solvency =
long-term debt/(long-term debt + net worth)
P/E =
CMV of share / EPS
IRA owner penalty free withdrawal for childbirth or adoption expenses up to
$5K
Options Premium =
Time value + intrinsic value
Requirements for SAR/CTR?
greater than $5K in a day, WITHIN 30 days. Also the record must be held for five years / Greater than $10K in a day, CTR within 15 days
Buy stop limit order: Buy XYZ 200 shares 20 stop 19
Order triggered at or above 20 and filled at 19 or lower
How is a bond quoted?
Par value is $1000, quoted as 94.20, with the decimal in 32nds
Preferred stock par value is
$100
Minimum amount of equity for first purchase in a margin account:
Reg T 50%, FINRA the lesser of $2000 or 100%. >$4000, deposit 50%. $2000<X<$4000, deposit $2000. <$2000 deposit 100%
Rule 144
Affiliate needs to file a Notice of Proposed sale with the SEC if the sale involves more than 5,000 shares
CY or Dividend Yield =
annual income (dollars) / current market value. Ex: 6% preferred stock ($100 par) is trading at $120 share. Dividend yield is $6 / 120 = 5%
Do dividends factor into capital gains?
No! Only into total return and income
Example of a quote: 12.00-12.10 [25x10] – buy 2500 shares at 12 and sell 1000 shares at 12.10
Nice! Lol!
How much can a donor give to a UGMA?
Unlimited amount of cash!
How much can be withdrawn from a 529 to pay for a student loan?
$10K
