Regulations and Markets Flashcards
Dealer
Broker-dealer buys a security using its own funds and places the security into its inventory
Charged mark-up/mark-down
Agent
Firm locates other side of the trade for its customer
Charges a commission
Discount rate
Rate that’s charged when a member bank borrows from the Federal Reserve
Prime Rate
Rate that commercial banks charge their best corporate clients
Federal Funds Rate
Rate charges for overnight loans between member banks
Bank Secrecy Act
Law designed to protect against abuses of financial crimes like financing terrorism and money laundering
Currency Transaction Report (CTR)
Filed for transactions over $10,000 by one customer
Suspicious Activity Report (SAR)
Filed when broker-dealer suspects the client is violating the law
Investment Advisors Act of 1940
Regulates firms that are established as investment advisors.
Regulates anyone providing investment advice regarding securities - including accountants
Form U4
Registrant agrees to use arbitration as a means of resolving disputes - waived right to litigation
Form 10K
Annual filing with SEC by companies who have issued securities
Form 10Q
Quarterly audited financial statements of corporate issuers
First market
Trading exchange listed securities on the exchange
Second market
OTC market where securities that are not listed on an exchange trade
Government and agency bonds, municipal bonds, most corporate bonds, and non-NASDAQ (OTCBB and Pink markets)
Third market
OTC firms that trade exchange listed securities
