Stock Market Rules Flashcards
1
Q
Initial Cash Balance
A
$100,000
2
Q
Interest earned on positive cash balance
A
0.75%
3
Q
Interest charged on negative cash balance
A
7%
4
Q
Tradable stocks
A
NASDAQ and NYSE
5
Q
Prohibited stocks
A
OTC or “pink sheets”
6
Q
Tradable bonds
A
Investment-Grade (“BBB” or higher)
7
Q
Prohibited bonds
A
High-Yield or “junk” (lower than “BBB”)
8
Q
Minimum Market Capitalization
A
$25 million
9
Q
Minimum share price
A
$3 per share
10
Q
Minimum Stock/Mutual Fund Share Size
A
10 shares
11
Q
Bond Increments
A
$1,000 – municipal and corporate
$100 – Treasury (government)
12
Q
Prohibited Transactions
A
bond and mutual fund short shares
13
Q
Market Hours
A
Monday – Friday, 9:30am – 4pm ET
14
Q
Commissions and fees
A
$5-per-trade on all transactions
SEC fee on sell transactions
