REITS DPPS and ABS
This investment product offers a fixed number of shares to the public at IPO, elect a BOD, and pass through gains, not losses to investors.
REIT
During this time, an investor is purchasing this (X) with his funds in a variable contract. In a later PHASE, (X) will be converted into something else (Y). Both X and Y's value fluctuates.
Accumulation Units, Annuity Units
The primary disclosure document for new municipal securities that must be made available for delivery no later then settlement date is known as:
The Official Statement
This type of company, classified under the Investment Company Act of 1940, have passive management, a fixed portfolio, are not exchange traded, AND have a stated termination date.
UIT
This type of bond is backed by income earned from the project that the bond funds.
Revenue Bonds
This document, typically found in DPPS structured as LPs, must be approved by the general partner and is filled out by interested investors as an application to become an LP.
Subscription Agreement
Variable annuities companies maintain client funds in this account.
Separate Account
The difference between the price offering and the price paid by the underwriter to purchase the municipal bond is commonly known as:
Gross Spread, Underwriters Discount, Underwriting Spread, Underwriter's Fee
A balanced fund includes these two types of general securities. They generate income and growth, respectively.
Bonds and Stocks
A corporate bond with a coupon of 6% would have a tax-free equivalent yield of this % for an investor in the 35% federal income tax bracket.
Tax Free Equiv= Taxable Yield x (1-tax rate)
6%x (1-35%)= 3.9%
This percent of taxable income must be distributed to shareholders in the form of dividends within a REIT on an annual basis.
90%
Variable universal life insurance policies have this type of premium and this type of cash value, respectively. (Colin from Statefarm cannot answer this question)
flexible, not guaranteed (variable)
In a competitive underwriting, an issuer will publish this document, found often in the Bond Buyer, to garner bids from underwriters.
Notice of Sale
A mutual fund has an NAV of $10 and a sales charge of 5%. The POP of this mutual fund is:
SC is a percentage of POP, not NAV.
POP= NAV/(100%-SC%)
10/.95=10.526
This type of tax will almost never be seen on a state GO bond
Ad Valorem Taxes
This security product is publicly offered on exchanges, offer the advantage of limited liability, typically have lower minimum investment requirements then their counterparts, are much more suitable for retail investors and offer liquidity.
Master LP
During accumulation, prior to annuitization, this feature is applied to a VARIABLE ANNUITY by default. If triggered, the recipient receives the greater of the current value of the contract or the amount contributed (if the contracts market value has decreased). This feature is forfeited following annuitization.
Guaranteed Death Benefit
The time in which a syndicate may accept orders for bonds is known as the order period. During this time, the syndicate manager will allocate orders in a priority such that the ones that benefit the syndicate most are prioritized. This order type is third in priority and specify which syndicate members receive credit for the filling of the order. HINT: golf
Net Designated
Pro Presale
Golfers Group
Dont Designated
Miss Member
If an investor does not specify which cost basis calculation method a shareholder wishes to use for her mutual funds, the IRS will default to this method:
FIFO
This type of bond has no statutory (constitutional, debt, or tax) limits.
Rev Bonds
These two tranches within a CMO pay interest over time (have a coupon) and are created by separating payments made to investors from principal payments and interest payments. This tranche class's value increases if interest rates drop, while the other's value decreases, respectively.
Principal Only Tranche increases when rates drop, while Interest Only decreases while rates drop. This is due to prepayment and extension risk.
This is the maximum % that FINRA permits for interest rate assumptions on hypothetical illustrations of both variable life insurance and variable annuities. Furthermore, if this % is illustrated an addition % at this amount must also be projected and illustrated. (This was on my actual S7)
12, 0
A syndicate in an undivided account has 1 mm of bonds to sell. A member with 10% participation has sold $57,000 of bonds. At the end of the offering $300,000 worth of bonds remain unsold. The member must purchase this much worth of bonds.
$30,000
Eastern Account 10% of 300k
A Value Stock Fund would seek to invest in securities that are considered cheap, often because they have this:
HINT: a single adjective, followed by a subject in elementary school
Low P/E Ratio
Jeff is so incredibly successful that he recently purchased a property for $10mm. In March, the property was assessed at a value of $11mm. In April, Nelson finally got on Jeff's level and bought the villa from him for $12mm. The state of Utah, where they are located, recently issued a coterminous GO bond effecting the property. With a millage rate of 20, Nelson will expect this much in property taxes.
One mill is equal to .0001 of the assessed value. 11mm x .0001 x 20 mills= $22,000. All the other info is redundant.