SIE Final Flashcards
Rights
Short-term and exercisable below current market price
Warrants
Long-term and exercisable above current market price
ADRs
Foreign securities traded in U.S market
Statutory Voting
Allows one vote per share
Cumulative Voting
Voter is allowed to place as many votes on each voted on topic as they wish
Rule 144 Volume Limitation
The amount of securities that can be sold in any three-month period for listed companies is limited to the greater of one percent of the shares or other units of that class outstanding, or the average weekly trading volume during the four calendar weeks preceding the filing of a Form 144
What Ginnie Mae has that other agencies don’t
Full faith and credit of the U.S. government
What General Obligation Bonds Are Backed By
Taxing authority
What revenue bonds are backed by
User fees
What bankers acceptances are used for
Facilitating foreign trade
Commercial Paper
Large unsecured borrowing by corporations
2 instruments with 270 day max maturity
Banker’s acceptances, commercial paper
What coupon value is also called
Nominal yield, fixed rate of return
What is relationship between price and interest rate
Inverse
When can you exercise stock American style
Anytime
When can you exercise stock European style
Upon expiration
Options Disclosure Document
Informs one of all the risks before account approval, must be returned within 15 days
What do closed-end funds traded based off of
Supply and demand in secondary market
What do open-end funds do
Continually offer new shares to the public
Variable annuity
Supplemental income to retirement
What 12b-1 fees cannot exceed
.75% basis points
How often NAV is calculated
Every day
Main characteristic of right of acccumulaton
No breakpoint on initial investment
How long letter of intent is good fo
13 months
No breakpoints for investment clubs
Maximum sales charge of a mutual fund
8.5%
Characteristics of Coverdells
Allow savings for K-12, income limits, funds must be used by age 30
Characteristics of 529 Plans
Just for college, no income limit, no age requirement for transfer
Main Con of Partnerships
Illiquid
REIT
Publicly traded investment product that passes income but not losses through to investors
Qualifications of a REIT
75% of income and assets in real estate, 90% of income is put through to shareholders
Equity REIT
Income-producing real estate such as rents, etc.
ETN
Debt instrument (put 100,000 in, might get a huge gain, or risk that creditor can’t pay
Cost basis of inherited mutual fund
NAV of shares when owner dies
Action that violated rules regarding selling away
Engaging in private securities transactions without permission
Willing to buy and sell at all times
Market maker
Direct Participation Program
Pooled entity that offers investors access to a business venture’s cash flow and tax benefits
UTMA Account
Custodial account
Potential outcome of covered call
Limited profit and limited loss
Function of Regulation T
Control margin requirements for stocks
Required BD action in anti money-laundering program
Designating compliance officer
Syndicate Desk
Team of individuals who research, market, and price larger deals on the sell-side, particularly stocks of companies
Transaction that covers a position by purchasing an option
Closing purchase
Agent
Broker-dealer that charges a commission
Act FinCEN enforces
Bank Secrecy Act
Greatest risk in variable life insurance policy
Market risk
When interest on Treasury notes is paid
Semi-annually
A firm repurchasing shares at no less than original sales price is being
Manipulative
Blue-sky laws
State-level, anti-fraud regulations that require issuers of securities to be registered and to disclose details of their offerings
