Series 66 Flashcards
-company or person that offers advice or analyses concerning securities
-is in the business of offering such advice (even if it is not the primary service offered)
-receives compensation for offering these services
-must register in any state they do business in
Investment Advisor
- when an IA has no place of business in the state and has no more than 5 non institutional clients in the sate within preceding 12 months
De Minimis exception
-a person who effects securities transactions for its own account or for the accounts of others
-hire agents
Broker Dealer
-an investment that pools money from several different investors who expect to make a profit derived from the efforts of someone else
Security
-a court judgement, decree, or order for a retirement plan to pay all or part of a retirement allocation to a spouse, former spouse, or child of the plan participant
-provides benefits that are taxed at the rate of the receiver of the benefits
QDRO
-services provided and fees charged
-any conflicts of interest
-methods on analyzing investment
For ADV (Brochure)
-the tax rate on the last dollar of income earned
Marginal Tax Rate
-average
Arithmetic Mean
-central tendency known as the compound annual growth rate
-calculated by diving final value by original value
Geometric Mean
-seek best low latency
-increase has lowered transaction cost for retail investors
-more liquid, narrow spreads, lower volatility
High-frequency Traders (HFT)
-measure amount an investor should be willing to pay today for projected future cash flows
Discounted Cash Flow
-serious violation that involves soliciting a client to purchase a security or investments not otherwise available through your firm
Selling Away
- must include consent to service process, copies of prospectus, and a copy of the articles of incorporation and bylaws
Registration by Coordination
Stock Price = Dividend / (Required Rate of Return - Growth Rate)
Dividend Discount Model
determined by discount all forecasted future cash flows to present value, add those discounted cash flows, subtract net debt, and then divide by number of shares outstanding
Discounted Cash Flow
More stringent measurement of liquidity than the current ratio
Acid Test Ratio
-immediate tax deduction and deferred donation to chosen charities
-used to asses the current fair market value of a dividend paying stock
Donor Advised Funds
an investment in a common enterprise for profit, w/ management provided by a third party
Security
-offers personal liability protection, no limits to number of investors, and pass through taxation
LLC
a person who issues or proposes to issue a security
Issuer
-must be given to an investment advisor client when a client begins his relationship with an AI and upon client request
Form CRS
-shareholders equity or net worth
Book Value
-holders cant borrow against
-earnings within are not taxed
-contributions to HSA are tax deductible contributions can be withdrawn tax free for qualified medical expenses
HSA
-owners report profits as income on their individual tax return
S-Corp
Modern Portfolio Theory
