Test 3 Flashcards
Which investment is not eligible for a 403b plan?
Limited partnership
If an individual is considering moving to the payout phase of a variable annuity, she should understand that the payments will:
Be based on the performance of the sub account products in the separate account
A client has a short stock that’s trading at $35 and wants to buy, but only If he can buy at $34 or lower. He should place a:
Buy limit order
A member firms business continuity plan is designed to address:
The procedures that will be followed in the event of a catastrophe
Municipal bond rating organizations are conceded primarily with the risk of
Default
Which term is used for a member of a stock exchange that’s responsible for providing liquidity by buying and selling throughout the trading day?
Market maker
A person who distributes interest in a DPP is referred to as the
Syndicator
Can warrants be perpetual?
Yes
What calculation describes the payout on a variable annuity?
A fixed number of annuity units multiplied by a variable dollar amount
What fund is the least likely to provide income?
Sector fund
If an investor writes (sells) a covered call, what are the potential profit and loss outcomes?
Limited profit and limited loss
If a corp goes bankrupt. What securities issued by that corporation has seniority in the liquidation process?
Mortgage bonds
During periods of easy money when interest rates are declining, yield curves tend to:
Slope upward from the shorter to the longer maturities
What disclosure document is used for a public offering of corporate securites?
Prospectus
Are official statements required to be approved by a regulator?
No
If a temporary hold has been placed on a customers account, the firm:
Must provide notice to the account owner and the trusted contact person
A corporation wants to offer its shareholders the ability to obtain shares at a fixed price l. What security should the corporation use?
Rights
The investment banking department of a B/D is generally involved in which activity?
Coordinating the offering of securities between the issuer and investors to raise capital.
What is a considered a leading economic indicator?
Manufacturing new orders
What recommendations will protect assets if there’s an impending large market decline?
Move investments into cash and equivalents
What is the typical maturity for an ETN?
10 to 30 years
Who enacts fiscal policy?
Congress
