SIE

ERISA

protects retirement accounts for employees at private companies

Registered representatives have to disclose investment accounts at other companies while being hired within ____ days.

30

Who can join together breakpoints?

Families

What tax credit’s do ADRs receive?

US tax credits (they are created in the USA too)

Broker =

Agent (A next to B)

Dealer =

Principal / Designated Market Maker (DMM)

ETN’s

debt obligations

TOD Account requirements upon death

1. Certified Death Certificate

2. Inheritance Tax Waiver

Series 6/7

Lapses after 2 years w/o MQP

Lapses after 5 years w/ MQP

SIE lapses strictly after 4 years

Immediate or Cancel (IOC) order

immediate execution w/ partial filled allowed

If an issue is deemed effective

It is ready to be publicly sold. (SEC reviews for registration completeness)

Call

gives you the right to buy an asset at a set price

(bullish - you expect the price to go up)
(CALL UP)

Put

gives the buyer the right to sell an asset back to the seller @ strike price (usually par)

(bearish - you buy a put when you expect the price to drop)

(PUT DOWN)

Treasuries

Subject to federal taxes

(exempt from state)

Quoted in 32nds

Munis

Subject to state tax (unless you’re a resident)
(exempt from federal tax)

UTMA (Uniform transfer to Minors Act)

type of custodial account

Cold Call times

Between 8AM and 9PM of the receiver of the call

Gas Wells:

Income (lowest risk)

Developmental (mid risk)

Exploratory (highest risk)

Reg T

50% initial deposit on margin short sales

FINRA requirement for written complaints

must hold onto them for 4 years

Order tickets

must be prepared prior to order submission

How many times a year can insiders sell shares?

4 times a year

Mutual Fund Shares

Class A (lowest 12b-1 fee)

Class B (mid 12b-1 fee)

Class C (highest 12b-1 fee)

Regulation S-P

created to protect customers non-public info

Discretionary Account

POA is required for broker to make decisions

Coverdell ESA age limit

all distributions made before age 30

all contributions must stop at age 18

Marginal Tax Bracket

tax rate applied to the last dollar received

Capital Risk

losing money on an investment

529 Plans

likely subject to gift tax

Control Shares

Held by an affiliate of the company

Volume Limitations

Restricted Shares

Acquired through a private transactions (REG D)

6 month holding period

Guaranteed Bonds

Full faith & credit of a 3rd party (parent company)

Change in tender offer =

10 business day extension

Can registered reps buy IPOs?

No

Registered Rep doing Pro-Bono

Have to notify their firm in writting

TIPS (treasury inflation protected secruity)

no purchasing power risk

Do stock buybacks require shareholder approval?

No

Index Options

European Style & Cash Settlement @ exercise

Elderly Exploitation

Initial 15 business day hold

Extra 10 business day hold

If needed by court - extra 30 business day hold (repeatable)

Keynesian Theory (Demand-Side Theory)

economic growth rises if increased government spending and decreased taxes

Breakpoint Sale

Failure to inform customer of close proximity to next breakpoint

Most applicable Muni Risk

Liquidity risk

Tombstone

Contains names of syndicate members

Reg D Private Placement

Unlimited Accredited Investors

Max 35 non-accredited investors

Customer wants to place an unsuitable trade…..

Explain why its unsuitable then do it

What does a non-affiliated marketer do for a municipal?

Conduct a feasibility study

Sell Stop Limit Order

Stop price is the trigger (trading at or below a price)

Limit price is the floor (sold at price above the limit)

Second Market

where unlisted OTC stocks trade

Tender offers

the offer must be available for a minimum of 20 business days

AIR (assumed interest rate)

conservative estimate of return

Rights

allow for the purchase of shares @ a fixed price

expire within 30-60 days

offered w/ stock (typically APOs)

When does reinvestment risk occur?

When rates fall

Rule 144

Applies to sales of control and restricted stock

Official Statement

muni documentation

Offering Memorandum

private security documentation

Employment records

Kept on file for 3 years after registration

Funded Bonds

long-term corporate debt

Trade confirmations

Kept on file for 3 years

Most recent 2 years readily available

Closed-end funds

security price is below the NAV

529 Plan

AKA QTP

Series Bond

Issued over time

Mature at once

(Seasons of a TV show)

Serial

Issued at once

Mature over time

(Eating a bowl of cereal) (Eating a balloon worth - short amounts than a final large bite)

Shelf registration rule

can sell securities within 48 hours (bypassing the 20 day cooldown period)

Pass through Securities from Ginnie Mae (federal agencies etc.) are most exposed to what risk?

Reinvestment risk (a lot of payments)

Uniform Securities Act is enforced by who?

NASAA

When can a red herring be first distributed?

when the registration statement is filed

Subchapter M

at least 90% of net investment income is distributed to shareholders
(Mutual Fund is considered regulated and avoids taxation)

Fingerprints must be submitted in what timefram?

within 30-days of U-4 Submission

Priority for Liquidation

Unpaid wages and taxes

Secured Bonds

Debentures

Subordinated debentures

Preferred stock

Common stock

If CE (continued education) isnt complete….

the representative is considered inactive

Intrastate offerings may not be resold outside their state of issuance for a period of:

6 months
known as rule 147

DTCC

Depository Trust & Clearing Corporation (non-profit)

BE for a put option

Strike price - premium

Short Swing Progits

made within 6 months

Frontrunning

trading before a large customer order

Trading Ahead

trading before a customer’s order

Currency Transaction Report (CTR)

made within 15 days of the transaction

What type of bond is quoted in terms of yield?

Muni G.O. Bonds

Supply-side theory

decreased government spending and taxation to increase economic growth

SAR (suspicous activity report)

must be filed within 30 days

held for 5 years

BrokerCheck

must be registered with FINRA via U4

Corporate Bond Quotes

1/8ths

Current Yield

Annual Income / Market Price

Pay structure for fund manager at a hedge fund

Capital gains & assets under management

How do bonds pay interest?

Semi-annually

Warrants

offered w/ bonds

issued w/ time vale

Insider Trading Civil Penalty

3 times the amount

Institutions borrow from the fed @ the

discount rate

If you write a security then you are

shorting the security

Stop Order

Triggers first, then fills

Fiduciary (looking out for others) Account

AKA Guardianship account

REITs (Real Estate Investment Trusts)

dont offer qualified dividends

BLiSS

Buy Limit | Sell Stop

fill when market falls

(blissfully fall down)

SLoBS

Sell Limit | Buy Stop

fill when market rises

(slobs get bigger)

What is required to charge maximum sales charge?

Breakpoints

Correspondence

Communications with 25 or fewer people

(don’t need permission from principal)

What is GDP measured in?

Constant dollars

Eurodollar Bond

pay interest & principal in USD

issued outside of the USA

Last day to contribute to last year’s IRA

April 15

Do businesses in early stages have a higher PE ratio?

Yes