Placing a trade
If a person believes that a given market or stock is likely to go up in value rather than down
Bullish
Entitles existing common stockholders to maintain their proportionate ownership
Preemptive rights or stock rights
2 or more adults are named on the account as co-owners, with each being allowed some form of control over the account
Joint Account
created as a way of encouraging people to save for retirement
IRA
Allows customers to increase their trading capital by borrowing either cash or securities through their BD's
Margin Account
A quote on a given security consisting of a bid and an ask
Offer
allows stockholders to purchase common stock below the cmv price
Rights offering
a designation that an owner may add to an account that allows the owner to pass all or a portion of the account to a named beneficiary or beneficiaries at death.
Transfer on death
when a customer withdraws and takes possession of IRA assets and the returns the assets back to an IRA (or other qualified account) within 60 calendar days
Rollover
Credit agreement, Hypothecation agreement, Consent to Loan agreement
Forms for Margin Accounts
The highest amount someone is currently willing to pay for the security. Always less than the ask price
Bid
A certificate granting its owner the right to purchase securities from the issuer at a specified price
Warrant
A trust that is created and funded by the grantor during the grantor's lifetime
Living trust
What is the age limit for making IRA contributions???
There is none
The pledging of customer securities as collateral for margin loans
Hypothecation
FOK, IOC, AON
Fill Restrictions
A company divides each existing share of its stock into several new shares but the total value of all shares remains the same
Stock split
Grants the appointed person the power to deposit or withdraw cash or securities and make investment decisions for the account
Full Power of Attorney
an account holder must have held a Roth IRA for atleats 5 years before the distribution and the account holder must be age 59 1/2 or older
Qualified distribution
A customer may grant trading authority to an RR to place trades in their account without preauthorization from the customer
Discretionary Trade
Sell to Open, buy to close
Short Position
A corporation forms a subsidiary company out of some of the corporation's assets and operations
Spin-off
UTMA & UGMA
Custodial Accounts
401(k), Money Purchase, SIMPLE
Defined contribution plans
Accounts for which firms provide a group of services for a single fee
Wrap Account