1
The sale of a call (obligation to sell) without owning the stock
What is an uncovered call position?
Municipal notes and tax-exempt commercial paper
What are examples of tax-free money-market instruments?
Mortgage bonds, equipment trust certificates, collateral trust bonds and asset backed securities
What are types of secured corporate bonds?
They are after-tax contributions that may possible grow tax-free
What is the tax treatment of contributions made to a 529 plan?
Unemployment claims, housing permits, orders for consumer goods, M2, S&P 500, average work week, interest rate spread
What are some leading economic factors?
Writer and short
What is terms that are synonymous with seller, in regards to options?
Only on the expiration date
What is when European-Style options may be exercised?
Federally tax-exempt, but may be subject to state and local tax
What is how interest on municipal bonds are treated for tax purposes?
A municipal note is issued in anticipation of future real estate taxes
What is a Tax Anticipation Note (TAN)?
Unpaid workers, IRS, secured creditors, unsecured creditors, preferred, common
What is the proper order of liquidation for a corporation at bankruptcy?
At or prior to account approval
What is when must a firm provide a copy of the Option Disclosure Document (ODD) to a client?
Stocks and/or commodities (e.g., gold)
What is what should investors buy if they're worried about inflation?
1) Expansion
2) Peak
3) Recession / Contraction
4) Trough
What is in proper order, the four phases of the business cycle?
Random selection
What is the method the OCC uses when issuing an exercise notice to a BD?
Asset backed security
What is the type of bond that's backed by credit card receivables or home equity loans?
Purchased at a discount and mature at par value
What are zero coupon bonds?
SP-1
SP-2
SP-3
What are Standard & Poor’s three ratings for municipal notes?
T-bills, T-notes, T-bonds, T-STRIPS, TIPS and Cash Management Bills
What are some examples of marketable Treasury securities?
Beta
What is the measure of an asset's volatility compared to the market as a whole?
They are not mutual funds, a client's goals should be long-term, and surrender charges apply due to early redemption
What is some of the specific product disclosures that are required for variable contracts?
Market price x shares outstanding (including restricted shares and those held by retail investors or institutions)
What is how is a company's market capitalization calculated?
Prepayment risk
What is risk primarily associated with mortgage-backed securities?
270 days
What is the maximum maturity of commercial paper?
Total Assets = Total Liabilities + Shareholder's Equity
What is a balance sheet equation?
The technique that can be used to roll assets from one annuity into another without taxation.
What is a 1035 Exchange