Winning 65 Flashcards
The Form 8-K
used to report significant events of importance to investors
Form 8-K must be filed with the SEC no later than four business days after the event
The Form 10-K
company’s annual filing and that is due, depending on the size of the company, 60 to 90 days after the end of the fiscal year.
Standard deviation
Measures security’s volatility versus its own historical performance.
Wrap fee
Wrap fee disclosure documents must be filed with the Administrator.
Nonmaterial changes filed with the within 90 days of fiscal year end.
The disclosure document must contain the information required by Appendix 1 of Form ADV Part 2A.
flat fee account
Net redemptions
The number of shares being liquidated by investors exceeds those being purchased
annual expenses /average annual assets
Brady Bond is
Common is zero-coupon US Treasuries, selected to mature at roughly the same time as the specific Brady Bond. An investor purchasing a Brady with collateralized principal knows that at maturity, a third-party paying agent will receive a payment from the US Treasury that will be used to repay the principal on the Brady issue. In the event of default, the bondholder will receive the principal collateral on the maturity date.
Safe harbor under 404(c)
In order to qualify for the safe harbor under 404(c), the portfolio selections must include at least three different asset classes, such as equity, debt, and cash equivalent.
Treasury bills
All Treasury securities are issued in book entry form. Treasury bills are always issued at a discount and are never callable.
Formula for the cash flow from operations
The most common formula for the cash flow from operations computation is net income plus the depreciation expense taken for the year.
net income plus the depreciation expense
ODD
options disclosure document (ODD)
at or before account approval
Agent transfers employment from a broker-dealer registered with the SEC
the agent, the former broker-dealer, and the current broker-dealer must all notify the Administrator.
Income tax filing due date
For partnership, LLCs, S corporation returns March 15. C corporations, April 15th for a calendar-year filer.
Futures
Futures contracts are traded on exchanges and, therefore, have standardized terms.
Forwards
In forwards, the terms of each contract are separately negotiated.
The price-to-earnings ratio PE
The 2 components of the price-to-earnings ratio are the current market price and the earnings per common share. When a company has a high P/E ratio, it means that investors are placing greater value on expected growth in earnings.
The price-earnings (PE) ratio is a valuation ratio used to calculate the value of a stock. For example, if a stock has a PE of 20, it means that the security is priced at 20 times earnings.
Rights offering
Rights offerings are usually very short-lived (30 to 45 days). The subscription price is below the current market value. It is issued to current stockholders. The rights are marketable.
Government National Mortgage Association (GNMA)
Government National Mortgage Association (GNMA) obligations are mortgage-backed securities that pass-through principal and interest and are backed by the U.S. government. However, the interest is taxed on all levels; federal, state and local.
Government National Mortgage certificates
Government National Mortgage certificates carry higher interest rates than U.S. Treasury securities because of prepayment or reinvestment risk.
The Federal National Mortgage Association (FNMA
The Federal National Mortgage Association (FNMA) is a publicly held corporation that provides mortgage capital in much the same fashion as GNMA. However, Fannie Maes are backed by the general credit of the FNMA and not by the full faith and credit of the U.S. government,
The Federal Intermediate Credit Banks (FICBs)
The Federal Intermediate Credit Banks (FICBs) lend money to credit companies, agricultural institutions, and commercial banks which in turn lend the money to farmers.
A large-cap growth fund
A large-cap growth fund is the most appropriate choice for a moderate-risk client because large capitalization stocks are generally less volatile than small-cap stocks and provide long-term capital growth
Dodd-Frank Act of 2010
Pension consultant’s AUM reaches $200 million, it has the choice of state or SEC registration. Under the USA, the District of Columbia (along with Puerto Rico and any U.S. territory or possession) is included in the definition of state. If an investment adviser only gives advice on securities issued or guaranteed by the U.S. government, it is excluded from the definition of investment adviser and doesn’t register anywhere, but that is not the same as having the government as your only client.
Form ADV Part 2 as its brochure = Advisory Contract
The Investment Adviser Registration Depository (IARD) is an electronic filing system that facilitates investment adviser registration, regulatory review, and the public disclosure information of investment adviser firms. The IARD is used for filing Form ADV Parts 1 and 2.
Debt-to-equity ratio
Financial leverage is the use of debt capital. The best way to see the extent to which that exists is through the debt-to-equity ratio.