Equities
A security that represents ownership in a corporation.
Common Stock
Bond prices and bond yields have what type of relationship?
Inverse Relationship
Opposite Relationship
The belief that the stock market is going to decline in the future.
Bearish Market Attitude
These savings plans allow money to be saved to be used for qualified expenses for a K-12 and post-secondary education.
529 (Education Savings Account)
This type of retirement plan is available to any individual with earned income where contributions are pre-tax.
Traditional IRA
If a company has 500,000 shares of unissued stock, 350,000 shares of outstanding stock, and 150,000 shares of treasury stock, what is the total number of authorized stock?
1,000,000 shares of authorized stock.
500,000+350,000+150,000=1,000,000
What type of bonds are issued for capital improvements that benefit the entire community and must receive voter approval?
General Obligation (GO) bonds
What two options strategies are bullish?
Long Call and Short Put
These are structured like a mutual fund where shares represent ownership in a portfolio of common stock, but trade on an exchange like a closed-end fund.
ETF (Exchange Traded Fund)
Contributions to these are made with after-tax money and are not considered tax deductible.
Roth IRA
This group determines if a dividend will be paid out to shareholders.
Board of Directors.
100 basis points are equal to what percent?
100 basis points= 1%
What two components are added together to calculate the premium?
Intrinsic value and time value
Intrinsic value + time value=premium
This type of investment is modeled like a mutual fund, but invests in either direct real estate or in mortgages. Shareholders are given shares of beneficial interest in a trust.
REIT- Real Estate Investment Trust
Equity REIT- direct real estate
Mortgage REIT- Mortgages
These are required at age 73 and must be taken by December 31 every year.
Required Minimum Distribution (RMD)
Name 3 rights of common stock holders.
- Right to inspect books and records.
- Right to transfer ownership.
-Preemptive rights.
- Right to corporate distributions
-Right to corporate assets upon dissolution.
- Right to vote.
Yield to worst is the lower of what two yields?
Yield to maturity or yield to call
If you are short stock, what options strategy would you use for protection?
Long call
A protective strategy when you have a short stock position is to purchase (long) call.
This type of annuity payment will have the smallest monthly check because payments are guaranteed throughout 2 lifetimes.
Joint life with last survivor
In this type of plan, the employer promises to pay each eligible employee a specific periodic benefit for life, starting at retirement.
A defined benefit plan
aka a pension plan
ADR's are subject to what kind of unique risk?
ADR's are subject to currency risk.
This risk is the risk that rising interest rates will cause bond prices to fall.
Interest Rate Risk
When the price of a stock is greater than the strike price of a call, the call is ______?
In-The-Money
This type of business is set up as a limited partnership that passes through gains and losses, and are considered illiquid.
DPP- Direct Participation Program
Can be an Oil and Gas DPP or Real Estate DPP
In this type of employer plan, the employee determines the level of their contribution and benefits will depend on total contributions and investment returns.
A defined contribution plan
Ex: 401(k), 403(b)