Chapter 1
Regular Way Settlement
What is T+1?
Short term bonds react the _____ to changes in interest rates
What is Quickest?
Bonus: How do long term bonds react? (+25 pts)
LOI allows an investor a ___ month period to reach the breakpoint amount
What is 13 months?
Bonus: How long can it be backdated?
Which stop order protects a short position?
What is a Buy Stop?
The UGMA account is opened with the ______'s social security number.
What is the minor's?
REITS must pay out at least ___% of earnings to shareholders annually
What is 90%?
Bonus: What percentage of the assets must be in real estate related activities? (+25 pts)
Bonds that have different issue dates and usually the same maturity date
What are Series Bonds?
Maximum sales load under the Investment Company Act of 1940
What is 9?
Bonus: What is FINRAs rate? (+25 pts)
_____ are broker dealers who maintain a firm bid and offer price in a given security by standing ready to buy or sell from their own inventory at publicly quoted prices?
What are market makers?
Excessive activity in a customer's account for the purpose of generating sales commissions
Churning
Annual Dividends/Market Price
If interest rate go DOWN, prices on bonds go ____
What is UP?
____ reflects the closing market value of all the securities in the funds' portfolio plus any interest or dividend income received on the securities in the portfolio.
What is the Net Asset Value (NAV)?
What is the Depository Clearing Company (DTCC)?
SEC rules require customer account records to be kept for _____ years after the account is closed
What is 6 years?
Stock Issued by a company that is resistant to normal business cycles, that are generally stable and have consistent earnings.
What is defensive stocks?
Bonus: Name an example of a defensive stock (+25 pts)
A basis point on a bond is....
What is .01%?
____ permits a reduced sales charge on new purchases when the total value of already-held shares plus the additional amount to be invested exceeds the sale charge breakpoint.
If a customer is long a stock in their account and sells the same security short (borrows from firm) then they are....
What is short against the box?
Bonus: What are two reasons this is done for? (+50 pts)
"Buy 100 shares of ABC, whenever you think the price is right" The RR is using __________
What is time and price discretion?
What Fletcher says for most of the important topics we will see on the exam
What is highly testable?
What is the magic number for the amount of question we need to answer correctly
What ages are Fletcher's kids?
What is two 5 year olds and a 2 year old?
Bonus: What are their names (+1000 pts)
What does Fletcher like to do to destress on the weekends?
What is stare at a wall for 30 minutes?
What time should you stop studying on Sunday night?
What is 7 pm?