Capital Markets
Quiet period
What is the greatest risk in a variable life insurance policy?
Market Risk
Upon expiration, an in-the-money S&P 100 index call option is settled by delivering what?
Cash
What law created and established the Securities and Exchange Commission(SEC)?
Securities Exchange Act of 1934
Who is the advisor for FSA?
Wenling Lu
How many consecutive quarters of declining GDP are typically used to define a recession?
2 Quarters
What are the possible outcomes for a writer/seller of a covered call? (Profit & Loss)
Profit Limited and Loss Limited
In the Over-The-Counter market, spread refers to what?
Bid and Asked prices
An accredited investor has to have an income of ____ for the last 2 years.
(single or Married)
$200,000 or $300,000 jointly
How many meetings did we have last semester?
10 Meetings
Underwriting arrangement requires the investment bank to purchase the entire issue from the issuer and assume full financial risk.
An investor owns 100 shares of XYZ common stock with the current market price of $50 per share. If XYZ conducts a 1-4 reverse stock split, what is the investor's current position?
(Number of shares and price per)
25 shares at $200 per share
Call provision of a bond stipulates what factor of the bond?
Call date and call price
Blue-sky laws are regulated by what entity?
State securities regulators
What is the old name of FSA?
(Not Abbreviated)
Financial Services Club (FSC)
This document is used during the waiting period and includes a red legend stating that the info is not yet final.
Preliminary prospectus or Red Herring
Collateral trust bond
This documentation requirement protects the firm when a customer initiates a trade that may be unsuitable.
Marking an order unsolicited
What act tightened financial regulations to combat money laundering and terrorism financing?
2001 USA Patriot Act
Who was the President of FSA in 2023-2024?
Charles Stroup
This exemption allows companies to raise an unlimited amount of capital from accredited investors without registering with the SEC, but prohibits general solicitation.
Regulation D (Rule 506 b)
This type of pooled investment passes through income, gains, and losses directly to investors, who are taxed regardless of whether distributions are received.
Direct Participation Program (DPP)
This type of risk arises when a thinly traded security causes a large difference between the expected execution price and the actual fill price of an order.
Liquidity risk
This regulation prohibits the selective disclosure of material nonpublic information to certain parties without making it available to the public.
Regulation FD (Fair Disclosure)
What year was FSA founded?
2010