SIE FINAL review Flashcards
callable preferred
the company buys buck from investors when interest rates go down
convertible preferred
investor converts shares to fixed number of common shares
adjustable rate preferred
usually tied to rates such as treasury bills and money market rates
restricted non insider
6 month
no volume restrictions
restricted insider
6 month
volume restrictions
control stock held by insider
no hold
volume always applies
american depository receipts
created when common shares are purchased in the forign country. Shares are purchased in us dollars. subject to withholding tax in home country
pay dividends in us dollars
bond prices have what relationship with interest rates
inverse
call feature
issuer to call in bond when interest rates are falling .
put feature
always investor to put back bond when interest rates are rising
convertible feature
allows investor to convert the bond into shares of common stock
Treasury bills
issued with maturities of 4,13,26,52
pay NO interest
issued at discount and redeemed at par
Treasury notes
2-10 years
semiannual interest
stated par value and mature at par value
Treasury bonds
10-30 years
semiannual interest
stated par value and mature at par value
Treasury reciepts
BDs buy treasury securites and place them in a trust at a bank and sell separate receipts against the principal and coupon payments
treasury stripes are or are not backed in full by the us gov
they are
government national mortgage assocation are the only
agency securities backed by the full faith and credit of the Federal government
debentures
debt obligation of the corporation backed only by its word and general creditworthiness.
guarenteed bonds
backed by a company other than the issuing corporation such as a part company.
these are unsecured even though they say guarenteed
GO bonds
for capital improvments that benefit the entire community.
some municipal issues are taxable like
build america bonds
negotiable certificate of deposit
some can be traded in secondary market known as negotiable cds. no physcial asset backed, only by full faith and credit.
bankers acceptance
short term time draft with a specified payment date drawn on bank usually between 1-270 days
comerical paper maturity rainge
also 1-270 days
repurchase agreement
bank sells some securities and buys bank later at higher price
reverse repo
dealer BUYS securities and sells them back later at higher price
closed end companies may issue
common, preferred, and debt securities.
open end companies issue
only common stock
mutual funds are ____
redeemable securities
class c shares for investors with _____time horizons
short
tax deductions for
mortgage expense and depreciation allowances
tax credits for
government assisted housing
hedge funds are known as
private investment companies
exchange traded notes
senior unsecured debt securities issued bt a bank or financial institution.
gtc automatically cancled if unexecuted by
last business day of april or october
fill or kill executed
immediately
all or none order executed
not immediately
agent=
broker=commission
principal=
dealer=markup or markdown
regular way=
t+2
declaration date record and payment deteremined by
ex dividend determined by
BOD
Finra
to open margin account you need
credit agreement
hypothitication
no loan consent
cordavel contributions up to
contributions can or cannot be limited for high income tax payers
2000 per year
can
six year records
blotters
ledgers
records
3 year records
u4 u5 ads
trial balances
cistomer confirmations
liftime records
minute bookds
stock certificates
customer complaints held for
4 years
sipc coverage
no more than 500,000 per separate customer, sipc coverage only 250,000 in cash
FDIC
insures deposits
accredited investor
has 200,000 or 300,000 joint annual
carrying firm
(clearing firm) carries customer accounts and accepts funds and securities from customers
fully disclosed firm
also known as introducing firm introduces customers to a clearing firm
a introducing firm recieves customer checks but
they must be made out to clearing firm
fed funds rate
rate that comerical banks borrow from each other
discount rate
rate that the federal government loans to member banks
leading indicators act as
coincident
lagging
predictors
confirm where it is
confirmation for new trend
keyesian theory
beleives government involvement is good
primary offering
proceeds go to the issuing corporation
secondary offering
all or more stockholders in a corporation are selling all or a major portion of their holdings to the public .
coordination
issuer files with state and sec at same time
qualification
must be anything state requires
notice filing
potential fee
firm element
requires members to prepare an annual training
regulatory element
computer based training within 120 days of persons second registration and then every 3 years therafter.
private business transactions also known as
selling away
As an investment vehicle, and regarding the tax consequences, REITS are organized as
trusts
The Advisers Act of 1940 specifically deters gaining political favor via contributions made to candidates, officials, or political parties. As such, if a political contribution is made to any of these entities then under the Act, the firm may NOT provide advisory services to any government these individuals or parties represent for how long?
2 years
warrants or rights can be purchased on margin
warrents can and rights may not
Which of the following is a debt instrument that pays no periodic interest?
treasury strip
