Unit 1
another name for red herring
What is a preliminary prospectus
The amount of days after the customer's request must the statement of additional interest be made available
What is 3 days w/o charge to the customer
This legal entity is responsible for paying taxes & does not pass on liabilities to investors
What is a C corporation?
Used to calculate the return an investment should receive based on the risk taken.
What is CAPM
customer must be in this form
What is written
The frequency that customers are sent account statements
what is quarterly?
behaves like an investment company, portfolio is fixed, do not trade on secondary market and are designed to be held for the life of the fund
What is a UIT
These three forms are associated with opening a margin account (2 are mandatory, 1 is optional)
What is credit agreement, hypothecation agreement, and consent to loan form?
What is alpha?
The length of time retail communications must be retained
What is 3 years after resolution
Another word for commercial paper
What is prime paper?
Length of time a person is eligible for a refund of all payments when purchasing life insurance
What is 45 days after application execution or 10 days after receipt, whichever is later?
a plan with tax deductible contributions, requires IRS approval, cannot discriminate, tax accumulation is deferred, all withdrawals taxed, and must be a trust.
What is a qualified plan?
This type of asset allocation is a long-term passive management style and tends to be slow moving & predictable
What is strategic asset allocation?
Assuming this is signed, then unresolved customer complaints will be resolved under code of Arbitration Procedure
What is the predispute arbitration agreement
A type of treasury issue known as TIPS helps protect investors against purchasing power risk. They are issued with a fixed interest rate but the principal amount is adjusted semiannually by an amount equal to the change in the consumer price index.
What is TIPS?
Name for investment company that distributes 90% of NII and avoids triple taxation
What is a regulated management company?
Two types of employer sponsored non qualified plans
what is section 457 and deferred compensation plan
This person is the founder of Modern Portfolio Theory
Who is Harry Markowitz?
If a dispute involves irreparable damage to one of the parties and the party seeking relief is able to prove they are likely to succeed but not without permanent damage, they may seek this
What is a interim or permanent injunction?
DAILY DOUBLE OPENING AN OPTIONS ACCOUNT
SEE DIAGRAM
this group of people or entity sets the ex-date on a closed end management company
What is the exchange or SRO?
Employee payroll deductions calculated on pre tax salary but taken after tax (no deductions) that allow them to acquire stock in incremental periods (typically 6 months)
What is a stock purchase plan
These are the four examples of defensive industries discussed in the LEM
What is food, pharmaceuticals, tobacco, and utilities?
One; 3 if both parties agree