Key Facts Flashcards
The rating of a municipal bond may be withdrawn if the rating service is not furnished ______ by the issuer.
Financial Information
If a bond sells for less than its par value, the difference is called the “______”.
Discount
A(n) “______” computes the yield if the dollar price is known; it computes the dollar prices if the yield is known.
Basis Book
If the basis price is higher than the coupon rate, the market price will be ______ par.
Below
Long-term bonds are ______ sensitive to interest rate changes than short-term bonds.
More
If a bond appreciated from 20% above par or increased 20 points above par, its current market value is ______.
$1,200
Refunding convertible bonds with nonconvertible bonds will ______ the dilutive effect on the common.
Reduce
REIT securities are marketable but not ______.
Redeemable
Historically, the ______ was the source for secondary market information on municipal securities. Named for the blue paper it was printed on, it showed the par value of all of the municipal securities that are being offered for sale in the secondary market.
Blue List
Today, the MSRB operates ______, which provides investors access to official statement, advance refunding documents, and trade prices.
Electronic Municipal Market Access (EMMA)
On a new municipal issue, bonds go out of the syndicate for member orders at ______.
Net Price
The ______ of a new municipal issue is the most complete source of information as it describes the bonds and their security (similar to a prospectus).
Official Statement
The ______ describes the method of award.
Official Notice of Sale
When computing a bid, the syndicate considers the date of ______ and the date of the ______.
- Issue
2. First Coupon
Any premium paid to the issuer by the ______ is subtracted from the total interest the issuer has to pay.
Syndicate
Municipal issuers may use ______ to lower the interest cost.
Bond Insurance
The ______ contains the date that syndicate price restrictions will be lifted.
Agreement Amongst Underwriters
The NASDAQ National Market System Price Reporting does not include ______ transactions.
Odd-Lot
An odd lot is an order amount for a security that is less than the normal unit of trading for that particular asset. Odd lots are considered to be anything less than the standard 100 shares for stocks.
The NASDAQ Level ______ Service shows the following quotes: highest bid, highest ask, lowest bid, and lowest asked.
II (2)
A security may be suspended from trading on the NASDAQ if the ______ requests it, if a(n) ______ is about to be disclosed, or if the net worth of the company becomes ______.
- Issuer
- Material Fact
- Negative
A(n) ______ gives the seller the option to deliver the security during any time period ranging from 6-60 business days. It also locks in the right to buy and sell the security at a specific price.
Seller’s Option
Stopping stock is done for ______ only.
Customer Orders
If the investor changes the duration of an order, the order’s ______ will be changed.
Priority
______, not orders, contain the amount of commission.
Confirmations