Amnesia
Outstanding Shares x CMV
Market Cap
“Front-end” Load, Lowest 12b-1 fees
Breakpoints and Rights of Accumulation
Letter of Intent(LOI) = Best for Long Term investors
A - Shares
Almost always all-cash offers are treated as a sale of the security resulting in a capital gain or loss
Buybacks and Tender Offers
Increases the number of shares and reduces the price without affecting the total market value of shares outstanding
Forward Split
Must be signed and dated before any initial penny stock trades may be placed
Suitability Statement
Allows stockholders to allocate their total votes in any manner they choose
Cumulative Voting
The interest rate the bond issuer has agreed to pay the investor
Coupon Rate or Nominal Yield
issued by the US Treasury Department they break apart a Treasury (Note or Bond) into separate interest payments as zero-coupon bond
Treasury STRIPS
AKA Blue Chip Stocks
Large Cap Stocks
The date a BOD approves a dividend payment
Declaration Date
a pool of investors’ money invested in different securities as determined by the fund’s stated objective.
Mutual Funds
Open end fund and closed end fund
Management Investment Companies
Has held an account with the BD for at least 1 year & has made 3 penny stock purchases of different issuers on different days
Established Customer
can be impacted by supply and demand
Bond Prices
The right to maintain your proportionate share of ownership
Preemptive Right
All shares that a company has issued and are in the hands of investors
Outstanding Stocks
A long term instrument that gives the investor the option of buying shares at a later date at the specified price
Warrant
This feature allows an insurer to call in a bond before maturity
Call Feature
allow investor to convert the bonds to common stock
Convertible Feature
The annualized return if bond is held to maturity
Yield To Maturity
Sold directly to public. Does not charge any type of sales charge, shares purchased at NAV. BUT, they are permitted to charge purchase fees, account fees, exchange fees and redemption fees.
No Load Shares
They are issued by cities, state or local governments, US territories
Government Issued Bonds
Bonds rated in the top four categories
Investment Grade Bonds
backed only by the full faith and credit of the company
Unsecured Bond
FCS (Farm Credit)
FNMA (Federal National Mortgage Association) “Fannie Mae”
FHLMC (Federal Home Loan Mortgage Corporation) “Freddie Mac“
Government Sponsored Enterprises