Series 7 need to work on bad Flashcards
1
Q
If more than 10% of a bond’s proceeds go to private entities
A
it is considered a private activity bond and is not automatically granted tax exemption
2
Q
For both U.S. Treasury notes and Ginnie Maes quotes are
A
quotes are as a percentage of par, in 32nds
3
Q
calculate conversion price
A
conversion price/100+stock dividend
4
Q
yield shown on bond confirmation
yield shown for discount
yield shown for pre
A bond confirmation for a bond called under an in-whole call provision will show
the event of an in-part call
A
dis-ytm
prem-ytc
ytc
lower of ytc and ytm
5
Q
Under federal law, contributions made into Section 529 plans are considered______ and are deductable or not?
earnings generated each year are_____ and on withdrawal are _______
A
gifts
not
tax deferred
tax free
6
Q
CMO
risks
what needs to be signed
A
issued in 1000 denominations
mortgages back these and these are relatively safe. Susceptibility to interest rate movements and the resulting change in mortgage repayment rate makes these carry risks.
prepayment risks(if rates fall)(refinancing)(trance risk) extended maturity risk(if rates rise)
customer needs to sign suitability statement
7
Q
CMOS and tax
A
taxable at all levels
8
Q
According to the Dow theory, reversal of a primary bullish trend must be confirmed by:
A
the Dow Jones Industrial Average and Transportation Average.
9
Q
Once a variable annuity has been annuitized:
A
each annuity unit’s value varies with time, but the number of annuity units is fixed.
10
Q
When must a new options customer-who has not yet traded options-receive the Options Clearing Corporation’s current disclosure document?
A
At or before the time the account receives approval for options trading.
11
Q
exempt transactions regulations/ rules
A
Regulation A+- small and medium corporate offerings
Reg D- private placements
Rule 147- securities offered and sold exclusivley intrastate
reg s- offeres and sales made outside us.
12
Q
TANs, RANs, GANs, and BANs are issued by municipalities seeking:
A
short-term financing.
13
Q
A buy stop order is placed
a sell stop order is placed
A
above a resistance level
below the resistance level
14
Q
IRA contributions and taxes
A
contributions are tax deductable so if a portion is not, then it is not taxed. but the remaining balance withdrawn is taxed as ordinary income
15
Q
All of the following events will affect the NAV per share of a mutual fund EXCEPT
A
Redemption of shares
16
Q
if you want a dividend, you must purchase
A
2 days before record date(day before ex div date)
17
Q
LEAPS and listed options on the same side of the market, on the same underlying security, must be
A
aggregated and remain within position limits.
18
Q
Western Vs Eastern
A
Western- divided, each underwriter responsible only for its own underwriting allocation
Eastern- responsible for an equal percentage of unsold
19
Q
As on exchanges, short sales on the Nasdaq Stock Market can occur
A
at any time
20
Q
vertical spread
A
Dif SP same exp
21
Q
horizontal spread
A
sam sp dif exp
22
Q
settlements
A
corp muni ex opt= T+3
US GOV/ opt pre= t+1
Reg t = T +4
23
Q
Recapture of deductions is a concern
A
when accelerated, but not straight-line depreciation is used.
24
Q
Premiums on options will only affect the stock’s cost basis or sales proceeds if
A
the option is exercised, or if (on the same day) a customer buys stock and buys a put.
for covered call its just sp
25
parity
market price/common shares
26
class c shares appropriate for investors
who have short time horizons because they become very expensive over a long period of time
27
which orders reduce dividends
BLSS
28
a stop order is designed to
is designed to protect a profit or prevent a loss if the stock begins to move in the wrong direction.
29
A sell stop order
protects a profit or limits a loss in a long stock position and is entered at a price below the current market.
30
quick ratio(acid test)
(Current assets - inventory) / current liabilities.
31
Near-term call
The near-term call would mean that no matter how attractive the bond's other features, the client may not have very long to enjoy them.
32
A control relationship exists if
someone represents both an issuer and municipal securities dealer.
33
Who signs the agreement among underwriters for a municipal bond issue?
All members of the underwriting syndicate.
34
If trading is halted in a listed stock, what happens to the trading in the stock's listed options
Options trading is always halted when the trading of the underlying security is halted. Options rely primarily on the underlying market value for premium determination.
35
Scale in a municipal bond underwriting refers to
yields by maturity
The scale, sometimes referred to as the re-offering scale, is a listing by maturity of the price or yields at which a new issue will be offered. A typical scale has earlier maturities with lower yields and later maturities with higher yields.
36
The debt limit is the maximum amount of debt a municipality
can have outstanding
37
The dated date has what effect on marketability.
none, The dated date is the date on which interest begins to accrue.
38
The bond buyer
includes
is published every business day and serves as an authoritative source of information on primary market municipal bonds.
placement(acceptance ratio)
30 day visible supply
Revdex(indexes)
39
Which municipal publication provides the most up-to-the-minute information relevant to the secondary municipal bond market?
Thomson Muni Market Monitor
40
does accrual days include settlement date
no
41
overbought vs oversold
decline=oversold
| rising=overbought
42
SMA to stock
| SMA to cash
double
| dollar for dollar
43
Yield based options settle
in cash
44
discretion and approval with finra and principles
the principal does not have to approve every order. they just need to check to make sure no churning is happening.
discretion does require principal approval but not finra approrval
45
The call provisions of a municipal issue would be detailed most completely in the
bond resolution
The bond resolution is the document that authorizes the issuance of a municipal bond. The resolution also describes the proposed issue's features and the issuer's responsibilities to its bondholders.
46
Section 8 bonds
are municipal revenue bonds backed by the U.S. government issued to help finance low and moderate income public housing. They are also known as Public, (PHA) or New, (NHA) housing authority bonds.
47
When a partial withdrawal is made from an annuity
the earnings are considered to be taken out first for tax purposes (or LIFO). Therefore, ordinary income taxes will apply
When contributions are made with after-tax dollars, these already taxed dollars are considered the investor’s cost basis and are not taxed when withdrawn. The earnings in excess of the cost basis are taxed as ordinary income when withdrawn.
48
non qualified
| qualified
after tax
| pre tax
49
unit investment trust has board of directors or board of trustees
trustees
50
An investor may meet a Regulation T margin call either by
cash equal to the call.
listed marginable securities with a loan value equal to the call.
51
how are dividends and interest credited to sma
dollar for dollar
52
5% markup policy applies to
markups, markdowns, and commissions.
principal and agency transactions
53
when do we add non recourse debt to cb
only when its a real estate partnership
54
real estate property tax
take assessed value without 3 zeros and multiply by mills
55
Sell order tickets must be:
marked as ether long or short
56
When assets are pooled into financial instruments such as Collateralized Mortgage Obligations (CMOs) to better facilitate selling them to the general public, the process is known as:
securitization
57
Which of the different sharing arrangements for limited partnerships between the general partners (GPs) and the limited partners (LPs) is generally considered the most common
functional allocation
58
A working interest in an oil and gas partnership entitles the holder to
a portion of the revenue.
responsibility for part of the expense of extraction.
59
Who insures general obligation bonds?
National Public Finance Guarantee Corp. and AMBAC.
60
Market timing is normally associated with which of the following portfolio management styles?
Tactical asset allocation.
61
Covered call writing normally occurs in a
stable market
62
Members of a syndicate receive notice of their share of the offering through the:
syndicate letter
63
Which of the following types of retirement plans would be most beneficial to a young employee of a corporation
defined contribution plan
64
bans tans gans rans pay interest and principal at
maturity
these are short term in nature
65
The bond resolution includes all covenants between the:
issuer and the trustee acting for the bondholders.
66
Yield quotes on CMOs are based on the
tranches expected life
67
As the price of the VIX (volatility market index) rises investors should expect:
call and put premiums to rise
68
A recession is defined as a drop in GDP for:
2 consecutive quarters
69
You have just received a statement of claim from the Director of Arbitration. One of your customers is claiming that your failure to follow his instructions led to a loss of $36,000. Under FINRA rules, you must respond within:
45 days
70
The most current information on new releases of municipal bonds can be found in
the bond buyer
71
Depletion allowances in oil and gas programs are based on the amount of oil
sold
72
In a municipal underwriting, the order period is the time in which the syndicate:
manager accepts and allocates orders without considering time of submission.
73
Capital gains distributed by a mutual fund to shareholders are reported and taxable for the year:
accrued
74
which entity guarantees a listed yield-based option
occ
75
All listed options trades with resulting gains or losses are treated
capital gains or losses
76
In an undivided syndicate, liability for unsold securities rests with the:
syndicate members on a pro rata basis.
77
are REITs redeemable
no
78
Which of the following order types are available to customers for use in NYSE equity markets?
Immediate or cancel
| order cancels others
79
When a bond issue is prerefunded which yeild is used
yield to call
80
A head and shoulders bottom formation is an indication of:
a head and shoulders top formation is indication
the reversal of a downtrend.
reversal of upward trend
81
If a 42-year-old customer has been depositing money in a variable annuity for 5 years, and he plans to stop investing but has no intention of withdrawing any funds for at least 20 years, he is holding:
accumulation units
82
short term interest rates or long term more volatile
short term.
83
federal funds rate volatile
yes because it changes daily
84
price volatility. long term or short term more volatile
long term
85
are nondiscrimination rules applicable in non qualified plans
do they need to deal with erisa requirements
no
| no
86
what if a non qualified plan is funded by something that is tax deferred
this is okay and the employee contributions can be tax deferred in invested in something like an annuity
87
As a general rule, the interest income from U.S. government and agency securities is subject to federal taxation only; it is generally exempt from state and local taxation. However what is fully taxable
the interest income from mortgage-backed securities is fully taxable.
88
With the exception of ____, all agency securities are obligations of the U.S. government.
ginnie mae
indirect
89
When making a noncharitable gift of securities, the donor's cost basis
is passed to recipient
90
Income bonds pay interest only
if earnings are sufficient and declared by the board of directors.
91
75 basis points is
.75% and 7.50
92
Treasury STRIPS
U.S. government securities that are deposited with a trustee and against which certificates are sold representing principal payments only on the securities
These are zero-coupon bonds issued by the U.S. government and are subject to annual taxation on the per-year accreted amount.
93
tax rules if put is exercised
However, the tax rules require that, if exercised, the cost basis of stock purchased or sales proceeds of stock sold, is adjusted to the breakeven point of the option.
94
If an investor buys a LEAPS contract on issuance and allows it to expire unexercised, what is the investor's tax consequence at expiration?
A LEAPS contract has an expiration of more than one year. Upon expiration, the buyer incurs a long-term capital loss equal to the amount of the premium paid.
95
for interest rate options if manager beleives rate falls do what?
if he beleives rates rise do what
fall- buy puts write calls
| rise- buy calls write puts
96
holders of yield-based call options profit if
rates rise. Prices of debt securities fall if rates rise.
97
index options settle in
Exercise settlement value is based
settlement is when
cash
on the closing index value on the day exercise instructions are tendered.
next day
98
If a covered call writer is exercised, the cost basis for tax purposes is
purchase price of the stock
99
Closing sales or purchases treated as capital gain or loss or ordinary income
capital gain or loss
100
short sales and margin requirements
For every $1 decrease in market value in a short account, $1.50 of SMA is created.
101
mv for long
DR/.75
102
mv for short
CR/1.3
103
Reg 2 for short below 5$ per share
The industry requirement to short stocks below $5 per share is 100% of market value or $2.50 per share (whichever is greater).
104
things that don't effect sma in long
interest charges
fall in long mv
stock div or split
105
effect on sma
```
3 ds
Dividends interest
deposit of marginable securities
deposit of cash
sale of securites
rise in mv
```
all increase
purcahse of securities and withdrawal of cash decrease
106
How much would SMA's price increase if marginable securities deposited in long account
50% of amount of securites
107
when is equity effected
Equity is only affected by changes in market prices and never by sales of securities in the account.
108
SMA is a line of credit with one restriction
it may not be used if account equity would fall below minimum maintenance.
109
cash dividends effect on sma
Cash dividends and interest are considered nonrequired deposits to a margin account and are credited in full to SMA
110
dividends and the orders
Unless the customer has given DNR, (do not reduce) instructions, open buy limit orders and open sell stop orders are reduced on the ex-dividend date by the amount of the dividend.
111
nasdaq level 1
is available to registered representatives through a variety of public vendors. Level 1 displays the inside market only, the highest bids and the lowest asks for securities included in the system, and other basic information such as last sale and volume. Normal market price fluctuations prevent a registered representative from guaranteeing a Level 1 price to a client.
112
nasdaq level 2
is available to approved subscribers only. Level 2 provides the current quote and quote size available from each market maker in a security in the system. To list a quote on Level 2, a market maker must guarantee that the quote is firm for at least 100 shares.
113
nasdaq level 3
provides subscribers with all the services of Levels 1 and 2 and allows registered market makers to input and update their quotes on any securities in which they make a market.
114
Unless the order is specified as AON or FOK
it may be partially filled
115
An official notice of sale is the issuer's method of inviting
competitive bids
116
MSRB rules require only that municipal securities dealers effect trades for customers at prices
that are fair and reasonable in current market conditions.
117
According to MSRB rules, if a customer purchases a municipal bond from your firm, the confirmation must disclose
whether your firm acted as agent or principal.
| your firm's address.
118
Dealers can publish quotations only for
bona fide bids or offers
119
Scale in a municipal bond underwriting refers to
yields by maturity.
120
Term bonds, or dollar bonds, are quoted
as a percentage of par. All other municipals are quoted in basis.
121
The only information the underwriter must furnish to the issuer for a municipal GO is
The dollar amount.
| The coupon rate.
122
the MSRB does not regulate
issuers
Rather, it regulates the underwriting of municipal securities and subsequent secondary market trading. Disclosure requirements for issuers are mandated by the SEC.
123
Members of the syndicate buy the bonds at the
nonmembers buy at
offering price minus the takedown,
offering price minus a concession. The basis price is the yield to maturity.
124
he true interest cost (TIC) is different from the net interest cost (NIC) because it
reflects the time value of money
125
When a member of the syndicate sells a bond they are entitled
to the total takedown
126
Remember that the concession would only go to
those who are not members of the syndicate but are part of the selling group instead.
127
Interest on funds borrowed to purchase municipal bonds
| deductible or not
not tax deductible
128
MSRB rules require that when a call date has been fixed by a prerefunding, what is shown
resulting yield to call
129
Sales to retail investors, trading between institutions, trading between dealers, and trading on behalf of other brokers all occur in the
secondary market
130
Bidding on new issues and establishing underwriting spreads have to do with the
primary market
131
The syndicate letter lists
the terms under which members will conduct the sale of the bonds.
132
the order period is
a short period of time following the award of a municipal issue to the winning syndicate. During the order period, orders for an issue of municipal bonds are allocated in accordance with the priority defined in the syndicate letter, not on a first come-first served basis.
133
who is not permitted to write calls against their own stock.
Corporations are not permitted to write calls against their own stock.
134
The formula to calculate the value of one right before the ex-date is follow
CMV − subscription price / Number of rights to purchase 1 share + 1
135
The capitalization structure of an open-end investment company can include:
common stock only
136
The tax treatment for LEAPS writers at expiration is unique.
Although investors may have held the contract for more than 12 months, LEAPS writers must report short-term capi- tal gains at expiration. LEAPS buyers will report long-term losses and gains if the contact is held for more than 12 months.
137
Which of the following could an analyst use to establish the rate of return on a direct participation program
Present value.
| Internal rate of return.
138
Under Rule 144, after holding the fully paid restricted shares for 6 months, the affiliate can begin selling.
the higher of
ether 1% of total shares or the
the average weekly trading volume in the stock over the past four weeks on all exchanges
or as reported through Nasdaq.
139
FINRA requires prior written notification be made, and prior written consent be received before any employee can open a brokerage account with other members or financial institutions. Exceptions include
accounts where the only activity will be in 529 plans, mutual funds, or variable annuities.
140
The call premium on a municipal bond trading above par is best described as the difference between:
par and the call price.
141
Declining inflation means what for interest rates
ir goes down
| prices go up
142
Balanced funds
Balanced funds, also known as hybrid funds, invest in stocks for appreciation and bonds for income.
suitable for investor who seeks a conservative balance between stocks and bonds
143
In a new municipal bond offering talk about the sequence with PGDM
A presale order is entered before the date that the syndicate wins the bid
A group order is placed after the bid is awarded.
The next highest priority for orders received during the order period is assigned to desig- nated orders.
A member firm enters such an order for its own inventory or related accounts, such as for a dealer-sponsored unit investment trust (UIT).
144
All of the following are fixed option contract terms EXCEPT the:
premium
145
If either side is displeased with a Code of Procedure decision, an appeal must be made within
25 days of decision date
146
is the maximum political contribution allowed under MSRB rules for those eligible to vote in the municipality issuing debt on a negotiated basis.
$250 is the maximum political contribution allowed under MSRB rules for those eligible to vote in the municipality issuing debt on a negotiated basis.
147
working capital=
current assets- current liabilities
148
For tax purposes, cash dividends are taxable to stockholders as of the:
payable date
149
Which of the following statements regarding fixed municipal unit trusts are TRUE?
The trust is managed.
trust not managed and portfolio can't be traded
150
The interest that municipal securities pay is:
Interest paid on securities issued by municipalities is generally exempt from taxation at the federal level. It may also be exempt from state and local taxation if the purchaser resides in the issuing state.
151
The breakeven point for covered call writing
the cost of stock purchased less the premium
152
control relationships and discretionary accounts
without the customer's consent, the broker/dealer cannot effect transactions in the customer's account for municipal securities in which a control relationship exists between the broker/dealer and the issuer. To effect such transactions, the broker/dealer must make full disclosure of the relationship and obtain the customers consent, but termination of the relationship is not required.
153
A recourse note means that
the limited partner agrees to pay the note no matter what happens. This means that this is included in tax basis
154
Upon receiving a customer request for a copy of the signed predispute arbitration agreement, the member firm has
10 days to supply it
155
If selling-group members liquidate into the stabilizing bid, they may be required to return
the concession they were originally paid
156
OTC trading practices in corporate securities are supervised by
SEC and FINRA
157
Even in a discretionary account, a registered representative may not exercise discretion when a control relationship exists between the issuer and the dealer without
first receiving the customer's permission.
158
may be used to pay the debt service on a general obligation bond.
General revenues of a city municipality such as real estate taxes or licensing fees
159
The locate requirement is applicable to
all short sales of equity securities.
160
when selling a bond at a lower yield what happens.
capital gain because as yields decrease price increases. so he's selling at a higher price.
161
Debt service is
Debt service is the total of interest and principal payable by the issuer plus any amount required to be deposited into a sinking or surplus fund.
162
The Trust Indenture Act of 1939 is applicable to
corporate debt issues that are nonexempt
offering over $50 million to be issued within 12 months
are offered interstate
have maturities of 9 months or more.
163
purpose of the Trust Indenture Act of 1939
This act was passed to protect bondholders and requires that issuers of these bonds appoint a trustee to ensure that promises (covenants) between the issuer and the trustee who acts solely for the benefit of the bondholders are carried out. The document is filed at the office of a custodian so that investors may review it if they choose.
kind of like a bunch of promises between issuer and trustee for benefit of bondholder
164
A corporation buys back its stock on the open market to do what
use it for stock options.
use it for future acquisitions.
increase earnings per share.
reduces total dividends paid
165
private placements and advertisements
in order to solicit or advertise private securities offerings, all purchasers of the advertised securities must be accredited investors or the business must reasonably believe that the investors are accredited investors at the time of the sale.
166
Whenever a bond trade settles on a payment date(1rst)
it trades flat (with no interest)
167
TRACE
is the FINRA-approved trade reporting system for corporate and government agency bonds trading in the OTC secondary market.
168
trace eligible
asset backed securities (ABS)
corporate bonds
CMOS
169
Investment banks or bankers
assist corporations in raising capital
assist municipalities in raising capital
do not accept deposits
do not make loans to individuals
170
Which of the following permits the highest annual contributions
A SEP IRA.
171
municipal bond rating service would consider all of the following when evaluating a revenue bond
debt service coverage ratio,
feasibility studies,
and projected operating revenues
172
A corporation issues rights to existing shareholders to
allow them to purchase enough stock, within a short period and at less than current market price, to maintain their proportionate interest in the company. Rights need not be exercised but may be traded in the secondary market.
173
rights or warrants used to sweeten debenture
warrants
174
who issues commercial paper
Corporations.
broker dealers
Finance companies
175
A taxpayer's most advantageous tax benefit is:
tax credit
176
when you see it asking about mv in margin think
dr/.75
| cr/1.3
177
margin call applies
on initial purchase
178
position-trading firm
Position trading is simply trading as principal, or dealer, for a firm's own account.
The opposite role is that of a broker, or an agent, purchasing or selling securities in the secondary market for customers.
179
Good Delivery Clearing Rule
When one BD delivers stock to another BD, single round lots and odd lots are cleared separately. However, odd-lot certificates can be used to clear round lot trades provided the odd-lot certificates add up to single round lots (100 shares).
180
revenue bonds and debt limitations
hey are not subject to the statutory debt limitations of the issuing jurisdiction.
181
The priority of filling municipal orders is established by
the managing underwriter in the release terms letter sent to the syndicate once the bid is won. This letter is an amendment to the agreement among underwriters. The priority is also disclosed in the official statement.
182
A customer purchases a 6% municipal bond in the secondary market on a 7% basis. The effective after-tax yield is
because its discount its going to be in between
183
When a reverse split takes place
the number of outstanding shares is reduced. Because the split has no effect on earnings of the company, dividing those earnings by fewer shares will cause an increase to the earnings per share.
184
BE for multiple options
CAL PSH
185
If the securities are advertised in private placement
purchasers must be accredited or the company must reasonably believe they are.
if non accredited then can't advertise.
186
Limit orders and stop orders are entered on book order as ether
Gtc or day orders
Time frame orders will be gtc
187
Margin and reg t
U need to apply the 50% to marginsblr securities only
Remember that options aren’t and mutual funds have to wait 30 days
188
When buying options and margin
100% must be deposited
Leaps are an exception(over 9 month maturities and can be bought on margin)
189
Long term rates in yield options and projection
Buy calls if you expect rates to rise in future
190
Net overall debt of muni is
Net direct debt+overlapping debt
191
Nh order
Customer agrees that floor broker can decide best time and price when to execute trade. Not placed with specialist
192
1 mill=
.001
193
Moody’s investment grade used for
Short term revenue anticipation notes
194
Primary tax benefit for income and gas program is
Depletion
195
In functional allocation talk about who picks up what drilling costs
General gets tangible
Limited gets intangible
196
Corporate
Muni
Gov
Use what days
Corp muni use 30 day
Gov uses actual days
197
Syndicate member getw
Total takedown which is concession and add takedown
198
Official statement
Responsibility of issuer
Identifies purpose
The source which interest and principal paid
Information regarding issuers background and credit worthiness
199
Control relationship exists when
Broker dealer controls, or is in control with the issuer of the security
200
Pacs
| Tacs
Reduced prepayment and extension risk
Lower yields than tacs
Tacs are protected against prepayment but not extension risk
201
CMOs might look at historical data where
PSA
202
In competitive bid who is the winning bid
One with the lowest bet interest cost. With premiums over par
203
Do Warrents give holder voting rights
Or ownership
No
204
Standard leaps contract
100 shares
205
What is not included on notice of sale
Bond rating and underwriters name
206
75 5 10 tear
75 % invested in securities issued by companies other than the investment company
No more than 5% in any one company
No more than 10% of outside corporations voting securities owned by the investment company
207
an exchange
an auction market in which securities listed on that exchange are traded. No minimum price is set for securities. Rather, the highest bid and the lowest offer prevail.
208
Regulation T applies only
non exempt securities
209
Dividends from American Depositary Receipts (ADRs) held by U.S. investors are declared in
the foreign currency but paid in U.S. dollars
210
he amount paid into a defined contribution plan is set by the:
trust agreement
211
visible supply does not include
short term notes
212
Unless the customer instructs you otherwise, not-held orders must be executed
on the day received
213
5% markup applies in primary or secondary
secondary
214
a growth and income portfolio invests in
blue-chip stocks and growth stocks
215
customer confirm or official statement needs location of trust indenture
official statement
216
When must a new options customer return a signed option agreement
within 15 days of account approval
217
Margin requirements on exempt securities (U.S. government securities and municipal securities) are set by:
the dea
218
When determining a position limit, a member firm aggregates which of the following customer positions?
options on same side (bullish or bearish)
219
tax consequences if option exercises
draw chart
| page 285
220
There are few restrictions on who may be the first beneficiary of a Section 529 plan. However, if the beneficiary is redesignated, the new beneficiary must be
a close family member of the first bene
221
Mutual fund performance statistics must show results for
1, 5, and 10 years, or the life of the fund, whichever is shorter.
222
An insured municipal bond is purchased by your client in the secondary market. After the sale, MSRB rules would require you to:
make delivery of the certificates accompanied by evidence of insurance, either on the face of the certificates or in a separate document.
223
An intrastate offering is exempt from:
federal registration
224
settlements
451
225
double barrled bond
bond that is backed by more than one municipal revenue source.
226
any municipal securities dealer involved in the sale of a new issue must deliver a final official statement to every customer who has purchased the issue,
at or before settlement
227
raw land for
appreciation potential
not considered a tax shelter
228
for uneven split
figure it out online somehow #16 on phone
229
what accounts need to be opened as cash accounts
retirement accounts and custodial accounts
230
employer stock purchase programs tax and deductability
after tax and not deductable
231
short interest indicator
high short interest is bullish
| low short interest is bearish
232
dilution occurs
through issuance of additional shares of common stock and the conversion of convertible securities
233
G-23 in relation to BD or municipal securities dealer who serves as a financial advisor to a municipal issuer
can't do it in ether a negotitated or competitive bid
234
unit investment trust and management companys are considered
investment companies
235
Nonpublic arbitrators are
any persons who have worked in the financial industry for any duration during their careers including persons associated with a mutual fund or a hedge fund, and persons associated with an investment adviser.
236
leverged etfs and margin
the leveraged ETF may be purchased on margin.
| Securities within the leveraged fund portfolio may be purchased on margin.
237
Upon redemption of a bond, whatever current interest rates may be, the investor receives
par ($1,000) plus the final semiannual interest
238
options agreement vs disclosure doc in terms of when its needed
The OCC Options Disclosure Document must be provided at or before the account approval.
options agreement
Customers do not have to complete (sign) the options agreement prior to entering an order, although, under exchange rules, the agreement must be signed and returned by the customer within 15 days of account approval.
239
Which of the following statements regarding callable municipal bonds are TRUE in terms of call premiums
they tend to decrease over time
240
T-bills, T-notes, and T-bonds are sold through
Agency securities are sold through
auction
selling groups
241
exempt issues 1933
The U.S. government
■ U.S. municipalities and territories
■ Nonprofit religious, educational, and charitable organizations
■ Banks and savings and loans
■ Public utilities and common carriers whose activities are regulated as to rates and other items by a state or federal regulatory body
Commercial paper—maturity less than 270 days
■ Bankers’ acceptances—maturity less than 270 days
■ Securities acquired in private placements—restricted stock
242
An order confirmed for the entire underwriting syndicate's benefit is called a:
group net order
243
```
GANs.
B)
CLNs.
C)
BANs.
D)
TANs.
```
grant anticipation notes -are issued with the expectation of receiving grant money from the federal government.
Construction loan notes (CLNs) are issued to provide interim financing for the construc- tion of housing projects.
Bond anticipation notes (BANs) are sold as interim financing that will eventually be converted to long-term funding through a sale of bonds.
Tax-exempt commercial paper is often used in place of BANs and TANs for up to 270 days, though maturities are most often 30, 60, and 90 days.
244
An early withdrawal from an IRA is taxed as
ordinary income +10% penalty
245
you can declare a loss under the wash rule sale if options are bought after
30 days
246
Dark pools
diminish market transparency for public retail customers
accommodate large-volume transactions for institutional traders
