Units 14 (Economics), 15 (Fin Mkts), & 16 (Report & Eval)

An inverted yield curve signals …, a flat yield curve, signals…

inverted recession, flat transition

Widening yield spreads indicate a … is expected and investors should invest in …

recession, defenstive stocks

During periods of …, the economy experiences severe recession and rising unemployment because … prices signal collapsing demand, reduced production, and widespread job cuts.

deflation, falling prices

The money supply is a … indicator

leading

Employment levels in industrial production are … indicators

coincident

The average duration of unemployment, corporate profits, GDP are all … indicators

lagging

Fiscal policy centers on federal

spending, taxation and budgets

The most readily available type of money is

M1

The Federal Open Market Committee conducts the US government open market operations. When the FOMC purchases securities this … the money supply.

increases

The federal funds rate is thenterest rate charged

between banks for loans overnight of their excess reserves

The discount rate is the interest rate charged by the

federal reserve to member banks for short-term loans

Tight monetary policy means … interest rate rates to … borrowing, spending, and inflation.

raising, slow

Weak US dollars will … US exports and … US imports

increase exports, decrease imports

Under Rule 144, Rrstricted stock (unregistered shares)→ 6

-month holding period for reporting issurers, 12-month for non-reporting issuers; and volume limit for insiders holding restricted stock

Under Rule 144, control stock resale is limited to just the … limit, which is

the greater of 1% outstanding shares or average weekly trading volume of the prior 4 weeks, per 90-day period

A … order protects a profit or limits a loss in a short stock position

buy stop

Orders that are entered below the current market price

below, BLISS: Buy limits, sell stops and sell stop limits

What are the people accredited investor thresholds?

Income: $200K+ each of last 2 years ($300K+ joint) with expectation this year. OR net worth >$1M (alone or joint), excluding primary residence.

What institutions qualify as accredited investors?

Banks, insurance companies, registered investment companies, SEC/state-registered IAs, exempt reporting advisers. Entities with >$5M in assets (not formed to buy the offering), or entities where all equity owners are accredited.

A SPAC is a blank-check company that … to later acquire a … company, usually within ~… years. …proceeds are … until a deal closes or investors redeem.

raises money in an IPO, acquire a priavte company within 2 years, and the IPO proceeds are held in trust until a deal closes or investors redeem.