S7 > Redemption 7 > Flashcards

Redemption 7 Flashcards

(90 cards)

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1
Q

________ is the amount received by the corporation in excess of the stock’s par value when the stock is initially used

A

Paid in surplus

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2
Q

The function of the _______ is to purchase FHA-insured, VA-guaranteed, and conventional mortgages

A

FNMA

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3
Q

Annuitized payments are viewed for tax purposes as part ______ and part ______

A

Earnings, cost basis

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4
Q

When a customer wishes to purchase something without being charged a commission, to accommodate the request, and the firm purchases the shares from the proprietary account by selling the shares to the customer wiring a markup, this is known as a ______ transaction

A

Principal

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5
Q

_____ does not cover short calls

A

Cash

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6
Q

Mutual funds performance stats must show results for ___,____, and ____ years or the life of the fund, whichever is shorter

A

1,5,10

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7
Q

For retail communication you have to file with FINRA WITHIN _____ days of first use or publication

A

10

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8
Q

Holders of foreign currency call options have the right to exercise the option and receive _______ equal to the intrinsic value the day of the exercise

A

US Dollars

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9
Q

The proceeds from the sale of a stock will be paid to firm by the ______ to whom the exercise notice was assigned

A

Broker dealer

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10
Q

Technical analysts are interested in ______ performance and stats

A

Market price

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11
Q

Short and long spreads both have defined ___ potential, not unlimited ____

A

Loss, loss

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12
Q

Taxes on deferred annuities are deferred until withdrawal, and they provide lifetime annuity payments, and potential ______ protection

A

Inflation

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13
Q

The repurchase of common stock DOES NOT reduce _____ costs

A

Interest

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14
Q

Index options settle in cash and the settlement value is based on the closing index value on the day exercise instructions are _______

A

Tendered

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15
Q

Modern portfolio theory is used to construct a portfolio attempting to maximize returns, and minimize risk by _____ the portfolio

A

Diversifying

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16
Q

What is the liquidation order

A

Secured debt holders
Unsecured debt holders
General creditors
Subordinated debentures
Preferred stock
Common stock

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17
Q

True or False: Wash sale is at a loss when a security is sold at a loss or the same or substantially identical stock is purchased

A

True

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18
Q

A rule of ____% limits the overall expenses an amount of broker dealer compensation considered fair and reasonable

A

15

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19
Q

Retail communications pertaining to ____ do not need to be filed

A

DPP’s

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20
Q

Real estate limited partnerships have ______ allowances but not ______

A

Depreciation, depletion

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21
Q

T Bills don’t have a max maturity of 365 days but _____

A

52 weeks

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22
Q

T Bills are quoted with a higher ___ than ____

A

Bid, ask

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23
Q

When it comes to cost basis, the higher the basis and the _____ the gain- the better

A

Lower

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24
Q

Short positions indicate future _____ potential

A

Buying

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25
Issuers are more prone to call ____ coupons before calling the ______ coupons
Higher, lower
26
After opening a new account, a firm has ____ days to provide the customer with a copy of the account record
30
27
When it comes to the Provisions of 1035, it is determined whether the exchange is suitable by if there was another deferred variable annuity exchange within the preceding ______ months
36
28
CMO’s are not subject to ______ risk
Prepayment
29
Legal opinion evaluates ____ and ____ status
Legality, tax-exempt
30
Under rule 147, what percentage of an issuers gross business revenues must be derived from sales within the company’s home state?
80%
31
Orders on the book that are adjusted on the ex date for a cash dividend are those BELOW the current market so _____ limits and ____ stops
Buy, sell
32
When it comes to the ability to make ongoing contributions to an investment program, the ____ is usually going to be the most reliable tool for verification
Income statement
33
Conversion of bonds into common stocks typically see a ____ of equity occur upon conversion
Dilution
34
If a refunding is done in 90 days or less, it is called _____ refunding
Current
35
An issuer of a bond will apply to the rating services for a rating for the purpose of reducing ______ risk
Credit
36
The syndicate manager is the only participant who earns the _____ when it makes the sale
Spread
37
For a stock trading under $5 a share, the customer must maintain 100% of SMV or _____ per share, whichever is greater
2.50
38
Buying stop orders can only protect ____ positions, not ____ positions
Short, long
39
An offering becomes effective when it is released by the _____ for sale
SEC
40
If the initial transaction is less than $2000 , the investor must deposit ______% of the market value
100
41
Eastern accounts have an undivided liability to purchase securities from the issuer and they also have an undivided responsibility for securities that are ____
Unsold
42
Immediate or cancel orders may be executed _____ or _____ and must be executed in one attempt
In part, in full,
43
The underwriter agreement is signed by the ____ and the ____
Issuer, managing underwriter
44
Which mortgage-backed securities carry the greatest credit risk
CMO’s
45
If interest rates rise, prepayment risk tends to ____ and maturity risk ____
Decrease, increases
46
When an issue is prerefunded, the issuer is going to redeem the bond on the first call date, so it must be quoted yield to ____
Call
47
Cash dividends received in a customer’s margin account can be withdrawn within the first ____ days of receipt
30
48
Variable annuities are withdrawn ____ and life insurance is withdrawn _____
LIFO, FIFO
49
A signed Options agreement must be signed and returned within ___ days of the _____
15, account approval
50
When an insured muni bond defaults, the insurance company returns both the ______ and _____ when?
Principal, interest Over the remaining term of the bond
51
The initial confirmation of a when-issued municipal bond contains the number of _____ involved in the transaction, and the yield to ____
Bonds, maturity
52
Individuals with diversified stock holdings in their portfolios write covered calls to ______ their rate of return on the _____ held in their portfolio
Increase, Stock
53
Convertible dentures offer the benefit of the ______ potential of a common stockholder with ____ downside risk
Upside, less
54
In a “when, as, if” issued confirmation, you’ll find the ____ date and _____
Trade, price
55
GNMA eliminates ____ risk
Credit
56
The initial confirmation of a when-issued muni bond contains the number of bonds involved in the _______ and the yield to _____
Transaction, maturity
57
A TIF form is sent to _____ by the ____ firm
ACATS, receiving
58
A tender offer must remain in effect until the original offer _____ or until ______ days after the REVISION takes effect, whichever comes later
Expires, 10
59
GNMA securities are subject to both ____ and ____ taxes
State, federal
60
Agency bonds typically see higher yields than _____ yields
Treasury
61
The opening quote for issues listed on the NYSE is set by the __________
Designated market maker
62
Interest on funds borrowed to purchase municipal bonds is not _____
Tax deductible
63
Individuals with diversified stock holdings in their portfolios write covered calls to _______ their rate of return on the stocks held in their _______
Increase, Portfolio
64
On the morning of the ex-date, a _____ order will not be reduced
Sell limit
65
May an underwriting syndicate have more than one manager?
Yes
66
When an investor in a mutual fund elects to reinvest dividends into additional shares, the price paid is the ______
NAV
67
Selling group members receive a _____
Commission
68
The risk of a bond decreasing in value during periods of inflation is known as _______ rate risk
Interest
69
When retail investors have the ability to make a fully informed decision through a review by the SEC and by providing a prospectus on new issues- does the SEC endorse new issues for sale?
NO
70
The balance sheet includes ____ and ____ and from this, _____ is determined
Assets, liabilities, net worth
71
Income statements contain ____ and _____
Salary, expectations
72
CMO’s provide the _____ reinvestment risk and the ____ yield
Least, lower
73
Blotters and ledgers must be held for ____ years
6
74
Customer complaints are held for ___ years
4
75
Corporate charters or articles of incorporation are kept for the ____ of the firm
Life
76
Account statements are sent ____
Quarterly
77
For test purposes, all reinvestments of Mutual fund dividends and capital gains distributions are at the _____ with no sales charge
NAV
78
Mutual funds must reedeem shares with ___ days of receipt, so there is never a _____ risk
7, liquidity
79
To force conversion of an outstanding convertible debt security, you can exercise the call feature when the debt security’s conversion value ____ the CALL PRICE
exceeds
80
For an investor concerned about loss of capital, one of the benefits of investing in a subordinated debenture is that in the event of the issuer’s bankruptcy, the investor is treated as a ____ of the corporation
CREDITOR
81
Technical analysts are concerned with ____ about market price or price movement
Statistics
82
Even if a day order is not complete, a customer must ___ the order
Accept
83
The locate of Reg SHO does not apply to ____ bonds traded on the NYSE
nonconvertible
84
When recommending industrial development revenue bonds, registered reps would be remiss if they did not discuss the ____ of the individual and the _____
Tax bracket, alternative minimum tax
85
FNMA pays both ____ and ____ taxes
Federal, state
86
Are negotiable CD’s debt instruments? So they trade with accrued interest?
Yes, Yes
87
If a company buys equipment for cash, what item would change?
Working capital
88
GTC orders are renewed or canceled according to procedures set by ____
Individual firms
89
Which market sees a segment of OTC where investment firms are not exchange members and trade securities without going through a physical exchange?
3rd market
90
Open end investment companies may not distribute long term capital gains to shareholders more frequently than ______
Annually
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