Series 65 Glossary Terms Flashcards
A tax-free exchange between like contracts. This provision applies to transfers from annuity to annuity, life to life, and life to annuity. It cannot be used for transfers from an annuity to a life insurance policy.
1035 Exchange
A section of the Investment Company Act of 1940 that permits an open-ended investment company (mutual fund) to levy an ongoing charge for advertising and sales promotional expenses. This fee may not exceed .75% and, if above .25%, the fund may not describe itself as no-load.
12b-1 fee
A tax-deferred defined contribution retirement plan offered by a private-sector employer.
401(k) plan
A tax-deferred retirement plan available to employees of public schools and certain non-profit organizations.
403(b) plan
Plans designed by states to provide tax-advantaged means of saving for eligible education expenses.
529 savings plan
Those persons required under an investment adviser’s code of ethics to report their personal securities transactions and holdings on a quarterly basis.
access person
Any institution or individual meeting minimum requirements for the purchase of securities qualifying under the Regulation D registration exemption.
accredited investor
The period during which contributions are made to an annuity contract.
accumulation stage
An accounting measure used to determine an annuitant’s proportionate interest in the insurer’s separate account during a variable annuity’s accumulation (deposit) stage.
accumulation unit
A measure of a corporation’s liquidity, calculated by adding cash, cash equivalents, and accounts and notes receivable, but not inventory, and dividing the result by total current liabilities. It is a more stringent test of liquidity than current ratio.
acid-test ratio
Active managers believe they can identify industries that are undervalued or overvalued in order to weight them appropriately and achieve returns in excess of the market.
active management style
_____ _____ is used to compute the gain or loss on the sale or other disposition of the asset or security.
adjusted (cost) basis
Gross income from all sources minus certain adjustments to income, such as deductible contributions to an IRA and net capital losses. It is the amount of income that will be subject to tax.
adjusted gross income (AGI)
(1) The official or agency administering the securities laws of a state. (2) A person authorized by a court of law to liquidate an intestate decedent’s estate.
administrator
A firm’s endorsement or approval of the social media content of a third-party site.
adoption
A technical analysis tool representing the total of the differences between advances and declines or security prices. The ____/____ ___ is considered the best indicator or market movement as a whole.
advance/decline line
Any promotional material where the firm has little control over the type of individuals being exposed to the material.
advertisement
An account through which a registered investment adviser (RIA) or investment adviser representative (IAR) of the RIA provides investment advice to her clients for a fee.
advisory account
Anyone in a position to influence decisions made in a corporation, including officers, directors, principal stockholders, and members of their immediate families. Their shares are often referred to as control stock.
affiliate / affiliated person
For an advisory client, a transaction in which a person acts as an investment adviser in relation to a transaction in which that investment advisor acts as a broker for both an advisory client and for another person on the other side of the transaction.
agency cross transaction
A debt security issued by an authorized agency of the federal government. Such issues are backed by the issuing agencies themselves, not by the full faith and credit of the U.S. government (except GNMA and Federal Import Export Bank issues).
agency issue
allow individuals to invest in large-scale, income-producing real estate
real estate investment trusts (REITs)
A transaction in which a broker-dealer acts for the accounts of others by buying or selling securities on behalf of customers.
agency transactions
(1) An individual or firm that effects securities transactions for the accounts of others. (2) A securities salesperson who represents a broker-dealer or issuer when selling or trying to sell securities to the investing public; this individual is considered an agent whether he actually receives or simply solicits orders.
agent
