Misc Flashcards
Sector Fund
A sector fund is an investment fund that invests in one type of industry or sector.
There is more volatility in sector funds because they focus on only one area of the economy, therefore they have no diversification.
NOT for income objectives
Balanced Funds
typically contains stocks and bonds.
Could be for income objectives
Can Common Stock holders Vote to elect CEO?
NO
Yellow Sheets
A Daily Publication that gives quotes for Corporate Bonds
Pink Sheets
A Daily publication that gives quotes for unlisted securities
Intrest rates rise = what to bond prices
Bonds Prices FALL
Bond Indenture
A bond indenture is a contract associated with a bond. The terms of a bond indenture include
a description of the bond features, restrictions placed on the issuer,
and the actions that will be triggered if the issuer fails to make timely payments.
The bond indenture is the core legal document referenced by the bond issuer and investors when there is a dispute regarding bonds.
Parity Price
CMV of Bond / number of shares you can buy = parity price
Participating preferred stock
receives the preferred stock interest as well as any common stock dividends
Specialist
Another term for DMM (Designated Market Maker)
Limited Partnership
an Association of 2 or more partners where at least one of them is responsible for the management of the partnership
Euro Dollar Bonds
Issued by a US Corporation
Paid out in US Dollars to investors
Issuing Company has no currency risk
SEC has no jurisdiction over them
Is FNMA backed by the US government
No its a publically owned corporation
A warrant on a bond entitles the holder to what?
purchase a set number of shares of common stock at a set price over a period of time not on a set date
Adjustment Bond
Another name for Income Bond
