A corporation or trust that pools investors' $ & then invests into securities on their behalf
What is An Investment Company
100
Traded in the 2ndary market
What is closed end
100
Who is the most quiet person in our group?
Who is Bao
100
An investment CO. must identify when registering with the SEC
What type of Mngmnt company it intends to be (open or closed end company)
Plans the company has to raise money by borrowing
Companies intention to concentrate it's investments in a single industry
Plans for investing in real estat or commodities
Conditions under which investment policies may be changed by a vote of shares
Does not need the full name & address of affliated person
That is WRONG
100
What is the asset-to-debt ratio when mutual funds borrow from banks?
What is 3:1 or 300%
200
How many investment companies are listed in the Investment Act of 1940? And what are they?
There are 3
FAC Yippeekayaa mutual fund investor!
Management Investment Company
UIT Unit Investment Trust
200
Does not hold common stock, preferred stocks or bonds.
What is open end
200
Who else besides Beth watches the Real Housewives series in our group?
Who is Moses
200
Mutual funds must always be sold with a prospectus
That is RIGHT-O
200
Which mutual fund trading activities may be prohibited by the SEC?
What is Margin account trading
short selling
joint account trading
and naked (uncovered) options trading strategies
300
Are classified as Investment Companies
Pay a fixed rate of return; and
do not trade on the 2ndary market but are redeemed by the issuer
What is FAC (face amount certificates)
300
Can be purchased in fractional shares
What is open end
300
What other nickname does Evil Back Stabber Dan have?
What is Weather Nerd
300
Closed end funds require a prospectus
That is WRONG
300
A majority vote of what kinds of shares is required to approve such actions as sales loads or investment company objective changes?
What is A majority vote of outstanding shares
400
These do not:
Have a board of directors
Employ investment advisors; or
Actively Manage thier own portfolios (trade securities)
What is UIT (unit investment trust)
400
The prospectus is used in the IPO otherwise no prosepective will be issued.
What is closed end
400
Who does not have a nickname yet in our group?
Who is Steve, Jim, Bao, & Beth
Robert is known as the Brain
400
The Securities Act of 1933 states that information in a prospectus must be current and no older than 24 months
That is WRONG-O
it states if in use for more than 9 months the information cannot be older than 16 months
400
I am...
generally a comerical bank
safekeeper of the assests
maintain asset records
I periodically audit the fund
and I am paid a fee from the income of the fund
I am the CUSTODIAN
500
Can be either Closed or Open end funds
What is a management investment company
500
FINRA sets the......
What is X DATE
500
How many questions will be on the test from chapter 2?
The number is 26
500
The Managment fee of a MF is generally the least expense of the MF?