Series 14 - Ch. 3

periodic plan

any written authorization allowing a broker to act as a customer’s agent to purchase or sell specific securities in specific amounts and at specific time intervals, and stipulating the commissions or charges the customer will pay

Form 13F

Quarterly report filed by large investment managers disclosing their holdings (if they exercise discretion over $100 mn or more in section 13f securities)

section 13(f) securities

equity securities that are traded on stock exchanges or nasdaq

Form 3

Initial statement of beneficial ownership. insider must file form within 10 days of becoming a director, officer, or more than 10% beneficial owner of the issuer

Form 4 

discloses changes in beneficial ownership of securities. must be filed within 2 business days after any transaction that results in a change of the insider’s business ownership  - when an insider buys or sells securities he must file a form 4

Form 5

annual statement of changes in beneficial ownership that were not reported on Form 4. Included transactions that should have been reported but were not, small transactions that did not need to be reported on form 4. Form 5 not needed if there are no previously unreported transactions. If form 5 is required, must be filed within 45 days after the end of the company’s fiscal year

schedule 13D

• report by beneficial owner of more than 5% of a voting class of securities of a public company

• contains info abt purchaser, source of funds for transaction, interest held, agreements with purchaser, and purpose of transaction

• filed within 10 days after purchase

Schedule 13G

• Simplified alternative to Schedule 13D available to institutional investors

• filed within 45 days after end of calendar year of purchase (within 10 days of purchase for non-institutional)

Form 13F

Quarterly report filed by large investment managers (investment discretion over more than $100 mn in exchange traded equities)

Mark on Close order entry TIME requirements

3:50 pm unless expiration day, then 3:40

Limit on Close (LOC)

limit order entered for execution at the closing price, provided the closing price is at or within the limit specified

LOC orders must be entered by

3:55 pm, on expiration days: may only be entered when they offset MOC imbalances that have been published on the tape after 3:40 pm.

trading suspension

occurs when SEC halts trading of a security due to questionable corporate practices or financial troubles.

has authority to suspend trading for up to 10 business days for any reason

level 1 halt

a 7% drop in S&P 500 prior to 3:25 pm ET will result in a 15 minute cross-market trading halt.

Maximum of 1 level 1 halt per day

level 2 halt

a 13% drop in S&P 500 prior to 3:25 pm ET will result in a 15-minute cross-market trading halt.

Maximum of 1 level 2 halt per day

level 3 halt

a 20% drop in S&P 500 at any time during the day will result in a cross-market trading halt for the remainder of the day

the SEC can suspend market-wide trading on any national exchange for up to

90 calendar days