SIE TEST TOPIC Flashcards
the following outlines the frbs buying
securities come out of the economy and money goes in
ms goes up
interest rates go down
borrowing and spending for consumers easier
economy expands
selling for frb
securities go into the economy and money comes out
ms goes down
interest rates go up
borrowing and spending becomes more difficult
economy contracts
during the cooling off period underwriters cannot
make offers to sell the securities
take orders
distribute sales literature or advertising material
during the cooling off period underwriters can
take indications of interest
distribute preliminary prospectus
publish tombstone advertisements to provide information about the potential availability of the securities
for investors looking for income through preferred stock, which would be most inappropriate
adjustable rate preferred
are treasury receipts or strips backed in full by us government
strips are
receipts are not
guaranteed bonds are unsecured or secured
unsecured
is an income bond a good recommendation for an investor seeking income
no
why would you place money market securities in a clients portfolio
highly liquid
very safe
a good place to invest money that will be needed soon
risks with money market securities
rate of return is low and not suitable for long term investors
all options accounts must
be approved by a firms Registered options principal
closed end investment companies are the only
investment company security that trades in the secondary market
close end investment companies may issue
common stock, preferred stock, and debt securities
a prospectus may or may not be altered
may not. no highlighting, writing, or taking any measure to bring attention to any specific passage or section.
an owner of reits holds
reits may or may not
may or may not be listed on exchanges
are or are not investment companies
offer dividends and gains to investors but
an undividend interest in a pool or real estate investments
be registered with the sec
cannot
not open or closed
do not pass through losses like LP and therefore are not considered DPP
hedge funds are considered
unregulated as they currently do not have to be registered wit the SEC
no matter how diversified a portfolio
it will still be subject to systematic risk
buy to open position=
long=bullish
sell to open a position
short=bearish
Declaration, record, and payment determined by
ex dividend date determined by
BOD
Finra
margin
is the amount of equity that must be deposited to buy securities in a margin account
marginable
securities that can be used as collateral in a margin account
to open a margin account,
it is mandatory that the customer signs the credit agreement and the hypoythecation agreement. Loan consent form is optional
Joint tenants with right to survivorship
all parties have undivided interest in the account