Trading & Markets
This order type executes immediately at the best available price.
What is a market order?
These three IRA types can generally receive annual contributions from eligible investors.
What are Traditional, Roth, and Rollover IRAs?
This tax form reports distributions from retirement accounts.
What is Form 1099-R?
Vanguard founder John Bogle popularized this type of fund.
What is an index fund?
A client asks how a mutual fund has performed over time. This conversation is generally appropriate for this group of representatives.
Who are licensed representatives?
This order type only executes if a security reaches a specified price or better.
What is a limit order?
This required distribution typically begins later in retirement and may trigger penalties if missed.
What is an RMD?
This tax form reports dividends, interest, and capital gains from brokerage accounts.
What is a 1099-Consolidated?
Unlike mutual funds, these securities trade throughout the trading day on exchanges.
What are ETFs?
Comparing two mutual funds' objectives, risks, and historical performance falls into this category.
What is a fund discussion?
A client buys a security and sells it before paying for the original purchase, creating this violation.
What is a freeride violation?
Moving assets from a Traditional IRA to a Roth IRA is known as this transaction.
What is a Roth conversion?
This tax concept represents the original value of an investment for gain or loss calculations.
What is cost basis?
A mutual fund's per-share value calculated after market close each business day.
What is NAV (Net Asset Value)?
A client asks whether a mutual fund or ETF may better fit their objective. The representative should begin by exploring these.
What are the client's goals and objectives?
These three fixed-income investments are commonly available through brokerage accounts.
What are bonds, CDs, and Treasuries?
This process corrects an IRA contribution made to the wrong type of retirement account.
What is a recharacterization?
Selling an investment for more than its purchase price generally creates this taxable event.
What is a capital gain?
This investment principle involves spreading money across different asset classes.
What is diversification?
This financial measure represents income generated by an investment, usually expressed as a percentage.
What is yield?
The difference between the price a buyer will pay and a seller will accept.
What is the bid-ask spread?
A withdrawal of excess IRA contributions plus any associated earnings is called this.
What is an excess contribution removal?
This IRS form reports the amount contributed to an IRA during the year.
What is Form 5498?
Funds managed to beat a benchmark rather than track it are known as these.
What are actively managed funds?
Before discussing a recommendation or suitability-related topic, the representative must understand this profile.
What is the client's investment objective, time horizon, and risk tolerance?