Investment Products
Type of bond is backed by full credit and credit of the U.S Govt
What is a treasury bond?
What is the SEC (Securities & Exchange Commission)?
This type of account is designed for minors and managed by a custodian until the child reaches age of majority
What is a UGMA/UTMA account?
This is the primary market where securities are created and sold for the first time.
What is the primary market?
This type of option gives the holder the right to buy the underlying asset at a set price.
What is a call option?
These funds are passively managed and aim to replicated the performance of a market index
What are index funds?
This act requires full disclosure of material information in securities offerings
What is the Securities Act of 1933?
This document outlines a customer's financial situation and investment objectives and must be completed before an account is open?
What is a new account form?
This type of order executes immediately at the best available price
What is a market order?
This is the term for the price at which the option holder can buy or sell the underlying asset.
What is the strike price?
This type of preferred stock allows missed dividends to accumulate
What is a cumulative preferred stock?
This rule prohibits mutual fund switching without proper justification
What is FINRA Rule 2111 (suitability)?
This type of accounts allows two or more individuals to share ownership, with assets passing to a survivor upon death
What is a joint account with rights of survivorship?
This U.S. exchange is known for its electronic trading and listing of tech companies
What is NASDAQ?
This type of option gives the holder the right to sell the underlying asset.
What is a put option?
This investment product combines features of both stocks and mutual funds and trades throughout the day
What is an ETF (Exchange traded fund)?
This regulation requires broker-dealers to maintain net capital requirements
What is the SEC Rule 15c3-1?
This agreement must be signed before a customer can borrow funds to purchase securities
What is a margin agreement?
This term refers to the spread between the bid and ask price of a security.
What is the bid-ask spread?
This term describes an option that would result in a profit if exercised immediately.
What is in-the-money?
These securities are issued by municipalities and may be exempt from federal income tax
What are municipal bonds?
This act established the framework for investment advisers and mutual funds
What is the Investment Company Act of 1940?
This account type allows a customer to trade options and requires approval based on financial suitability and experience
What is an options account?
This system facilitates trading of securities not listed on formal exchanges.
What is the OTC (over-the-counter) market?
This strategy involves buying a call and selling a put on the same stock with the same expiration date.
What is a synthetic long position?