Regulatory Issues & Ethics
A registered representative sends a note to 22 prospective customers touting the value of investing in the Windmill Value Fund. what is this an example of?
Correspondence
What account does b/b/a pertain to?
sole proprietor accounts
Economic headlines state that the consumer prices are rising while unemployment remains high. This indicates the economy is experiencing
List investment-grade bond ratings for S&P
AAA
AA
A
BBB
Who are investors in LGIPs?
other government entities, not retail investors
What are three things found on a trade confirmation?
Trade date
description
commission
Yield
Price
Amount
tax liability is that of a minor
What can the Federal Reserve do to slow the economy?
When is interest from a bond tax free?
Bonds issued by or from a territory of the United States
What do DPPs use to reduce taxable income?
Depreciation and depletion
the act of inflating the price of an owned stock by perpetuating false and misleading rumors to sell at a higher price
When can the first RMD be delayed until?
April 1st of the following year
What is the most volatile interest rate in the economy?
What is the federal funds rate
Which agency security can you receive monthly payments from?
Government National Mortgage Association
a conduit
What constitutes communication as correspondence?
distributed or made available to 25 or fewer retail investors within any 30-calendar-day period
when is full payment required in a cash account?
T+4
What are four leading economic indicators?
money supply
building permits
average weekly initial claims for state unemployment
stock prices
changes in business and consumer borrowing
machine tool orders
Government zero-coupon bonds
Treasury receipts and STRIPS
What are the taxes for 529 plan?
Withdrawals for nonqualified expenses will be subject to taxes on any gains and 10% penalty on the gains.
Taxes aren't applied if under federal tax law
When is a client referred to as a consumer?
If the relationship is one time and limited
What cannot be bought on a margin but can be used as collateral after being held for 30 days?
mutual funds
One of the most important FRB diagnostic tools of the FRB is the measure of money supply - list each and what they consist of.
M1 - cash and demand deposits
M2 - M1 + Consumer savings deposits
M3 - M1 + M2 Large-denomination time deposits
List four money market securities
CD
Banker's Acceptance
Commercial Paper
REPOs
What are ETNs primary risk
default risk