Settlement Dates
Corporate or Municipal Bonds
Second business day following the trade (T + 2)
you have 1000 shares how many shares after 2-for-1 Stock split
2000 shares
By signing a ____, shareholders give another person the authority to vote on their behalf
Proxy
The placing of a trade into the system either using either a print or electronic ticket
trading process
A broker-dealer is required to promptly forward all issuer-related financial information to its customers who own the stock. The information includes ___ filings (annual reports) and ____filings (quarterly reports).
10-K
10-Q
U.S. Government Securities
Next business day (T + 1)
you have 50,000 shares reverse stock split 3-1 happens what is number
16,666.66
Generally if two companies combine, it’s referred to as a _____
merger
The occurrence of a trade or fill in the secondary market (i.e., on the NYSE or Nasdaq)
Execution
Explain why a firm would charge issuers
A member firm may charge issuers for forwarding materials to the beneficial owners. The reimbursement rates are standardized under FINRA rules.
Cash Trade/Settlement
Same day (T)
you own 20,000 shares at 10$ per share company does 4 for 1 stock split . what is new shares and cost
80,000 shares 2.50 per share
An _____implies that one company is purchasing the other
acquisition
Agreement by executing firms as to the details of a trade
Clearing
Explain why a firm would charge customers
A member firm may also charge its customers for services, including safekeeping of securities, collection of dividends and interest, and exchange or transfer of securities.
Negotiated settlement not earlier than two business days after the trade is referred to as ?
Seller’s Option
you own 40,000 shares at 10$ per share company does 2 for 4 reverse stock split . what is new shares and cost
20,000 at 20 per share
a group of rights offered to existing shareholders to purchase additional stock shares, known as subscription warrants, in proportion to their existing holdings.
Rights Offerings
The swapping of securities for funds that completes the transaction between firms
Settlement
what is a Objecting Beneficial Owner (OBO)
client instructs her broker-dealer to keep her personal information confidential, it may not be provided to issuers
Municipal Bonds purchased on Thursday would settle when?
Monday
a company may want to raise the price of its stock. will Executing a stock split or reverse stock split ?
reverse stock split
the distribution by a business to its stockholders of particular assets and especially of stock of another company also : the new company created by such a distribution
Spinoffs
put in chronological order
Custody and Safekeeping
Execution -
Order Entry -
Clearing -
Settlement -
Order Entry -
Execution -
Clearing -
Settlement -
Custody and Safekeeping -
Non-Objecting Beneficial Owner (NOBO)
gives permission to her broker-dealer to release her name and address to the issuer