SIE

SRO

Self regulatory Organization, not the sec, must be non-governmental organization that enforce industry regulations

Securities Investor Protection Corporation

Protects investors with insurance for owned stock in case of bankruptcy

Issuer

An entity that creates and sells securities to raise capital, such as governments or companies.

Primary and Secondary Market

1. Newly-issued shares (shares are created, like in an ipo) and sold to insitutional investors

2. Re-selling shares between investors (stock market) within the NYSE

ADR

American Depositary Receipt, allows american buyers to trade foreign shares in the U.S.

Treasury Stock

Company buys their stock back for tax efficiency

Third-Market Transaction

trades between institutional investors and broker-dealers off the nyse floor, still tracked by nyse

equation for balance sheet

total assets - total liabilities = networth

exempt

exempt from listing/registering with the sec

Financial Crimes Enforcement Network

detect and prevent money laundering

Fiscal & Monetary Policy

Fiscal: Congress/President set tax rates + policies
Monetary: Fed cuts/Increases fed funds —> increase = decrease in interest rates

money market instrument

short-term debt from issuers

Rule 147

Single state offerings — go public, but sales confined to one state, to avoid costs of official ipo

Rule 144

allows investors to resale unregistered/registered securities

unit 2

how is s-corp different from c-corp

s-corp are for smaller companies with >100 shareholders, and can only issue common stock, unlike c-corp where u issue common stock, but when requested can issue perefered stock in addition to common stock

perferred stock

fixed dividend payments, priority of common stock, no voting rights

When a company goes bankrupt…

because of the sipc, shareholders are paid their assets, but all liabilities/debt/creditors/bondholders must be paid first

municipal revenue bond

projects that are not paid through taxes that benefit the public (bridges, airports, tunnels)

Callable Bond Option

Call Fall — buy if rates fall; (investor pov) — from issuers pov, issue callable bonds if rates

Puttable Bond Options

Rise Put — sell if rates drop; sell unattractive bond at a lower rates (investor pov)