Investments Flashcards
1
Q
What is a CMO?
A
- Mortgage backed Pools
- Has seperate classes called tranches from A to Z
*A is fast pay, M is medium pay, Y is slow pay plus a Z tranch
- Z tranch is an issue that bears no coupon but has the most risk but recieves the cash flow from the collateral remaing after the other tranches are satisfied
2
Q
What is an accredited investor (Unlimited) for Private placement (Reg D)
A
Remember 1, 2, 3
- Net Worth of $1,000,000 (does not include residence)
- Annuel income of $200,000 Single
- Annuel income $300,000 MFJ
3
Q
A Private placement is only allowed a maximum of 35 non -accredited investors. What is a non- accredited investor?
A
- Sophisticated
- Must sign an investment letter
- Requires the use of a purchaser representative (lawyer or accountant)
