Info that will make you a fully licensed financial advisor :) Flashcards
What is true about a writer (seller) of call option?
They have the obligation to sell 100 shares of stock.
What are CLOSE-end funds (on an exchange) PURCHASED with?
A commission
What are CLOSE-end funds (on an exchange) SOLD with?
MINUS a commission
How are C Corporation (C Class mercedes) taxed?
Twice
What do buyers of options have?
the right to exercise
What do sellers of options have?
obligations
If A bond is selling at a premium what does this indicate?
Interest rates have decreased since the bond was issued
What is a transaction in which a writer covers a position by purchasing an option called?
A closing purchase
What are ADR’s required to be registered under?
Security’s act of 1933
What debt security expire in a year or less?
Money market instruments
What type of communication can be considered misleading?
Literature with years of performance to support the future.
What is treasury stock?
previously issued stock that has been subsequently repurchased by the corporation
Fee-based accounts are generally suitable for kind of accounts?
An account that’s rebalanced frequently
What fund has market, exchange, and political risk?
International equity fund
What does the SIPC cover?
SIPC covers separate customers.
What does good delivery require?
Good delivery requires that certificates be in 100-share units, multiples of 100, or any combination which adds up to 100 shares.
What is An accumulation unit in a variable annuity contract?
an accounting measure used to determine the contract owner’s interest in the separate account.
How do you find the market cap?
A company’s market capitalization is found by multiplying the market value by the outstanding shares.
Who is required to sign a opening account document of a cash account?
FINRA requires only the PRINCIPAL.
What Is a Notice of Sale?
For a competitive offering of municipal bonds, the Notice of Sale is created by the issuer to provide potential bidders with information regarding the general characteristics of a proposed bond offering.
What is The Efficient Market Hypothesis (Theory)?
Theory) states that financial markets are efficient and that the prices of securities reflect all known information; therefore, it is impossible to outperform or time the market.
A customer has recently closed her account. How long is her broker-dealer required to keep records related to her account?
6 years
According to current regulations, if a client redeems his mutual fund shares, the fund company must send the payment within:
7 days
What is the CTR for?
+$10K in Cash
If interest rates are lower in the U.S. than they are overseas what will investors do? Why?
typically lead to U.S. investors investing overseas. This will decrease the demand for the dollar, which results in a weaker dollar and foreign goods being less attractive.
What is a specialty fund?
A specialized or specialty fund is a type of a fund that invests primarily in a particular industry or geographical area.
What approval is required before a municipality can begin making payments on a moral obligation bond?
Approval by the state legislature
