Economics 101
A country has a trade ___ if it has a higher credit balance and exports more than it imports
Surplus
These types of bonds are quoted in 1/8th increments
Corporate bonds
The IRS requires REITS must invest at least this percentage of their total assets in real estate (for equity REITS)
75%
(Current assets – inventory) / Current liabilities
Quick Ratio (acid test)
This form must be filled out to begin the registration process for a new FINRA representative
U-4
In a deflationary environment, the purchasing power of a fixed income investment would ____
Increase
A company has a market cap of $290,978,427.69 typically falls under this “size” classification
Micro-Cap
SEC defines anyone with beneficial ownership of at least this percentage of a company’s voting shares
10%
Market Risk Premium
(Rm - Rf)
This important SEC bylaw provides the conditions for public companies who wish to raise funds through a private placement
Regulation D
Derivatives and bonds are most typically traded through this type of exchange
OTC
These represent ownership in the shares of a non-US company that trades in U.S. financial markets
American Depositary Receipts
An individual with financial assets of $33MM would be classified as which of the following: poor net worth; large net worth; high net worth; very high net worth, or ultra high net worth;
Very high net worth
NOI / Annual Debt Payment
Debt Coverage Ratio
Form S-4 is a filing by publicly traded companies used to register any material information related to these types of business activities
Mergers & Acquisitions
Examples of this type of economic indicator include GDP, industrial production index, and capacity utilization index
Coincident indicator
Dividend Payment process – arrange the following dates in the correct order: Record Date; Ex-Dividend Date; Declaration Date; Payable Date
Qualified Institutional Buyers include insurance companies, investment companies, employee benefit plans, investment advisors, investment companies and trust funds holding at least $_______ MM of securities
$100MM
This financial formula is used to derive return on equity, serving an important purpose in DCF analysis
CAPM
This form is used to notify the public of current events within the company
Form 8-K
_____ _____ is a tactic used to influence and pressure, but not force, banks into adhering to policy
Moral Suasion
Equation for Yield to Maturity
YTM =
(annual interest + (discount or premium/Years to Maturity))
/
(Par value + Market Price)/2
A reverse triangular merger is the formation of a new company that occurs when an acquiring company creates a subsidiary, the subsidiary purchases the target company and the subsidiary is then absorbed by the target company. As long as at least ___% of the consideration is paid in stock, the selling shareholders are only taxed on the cash portion of the consideration
80%
EBIT – Taxes + Depreciation + Amortization - CAPEX + Change in Working Capital
Free cash flow
In order to qualify for the Rule 147 intrastate offerings exemption, this percentage of the company’s gross revenues, assets, and offering proceeds must be domiciled within the state
80%