S7 > Redemption 8 > Flashcards

Redemption 8 Flashcards

(80 cards)

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1
Q

_____ quotes are available for ETF’s

A

Real time

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2
Q

When it comes to municipal variable rate demand obligations, interest payments are tied to the movements of another _____

A

Interest rate

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3
Q

When it comes to municipal variable rate demand obligations, the coupon rate of the bond _____ and the price remains _____

A

Changes, stable

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4
Q

True or False: NASDAQ service provides subscribers with last sale info, the inside market info, and volume info

A

True

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5
Q

Investors are required to pay taxes on ALL _____ from mutual funds

A

Distributions

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6
Q

If a state agency has issued a moral obligation bond that runs into difficulty and requires the secondary backing to be implemented, _____ approval is necessary

A

Legislative

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7
Q

Switching among investment classes based upon anticipated market changes is using a technique known as ______ allocation

A

Asset

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8
Q

With bonds subject to a gross revenue pledge, the first priority will be to pay ______ and ______

A

Bond interest, principal

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9
Q

Reinvestment of mutual funds capital gains and dividends results in a _______ cost basis

A

Higher

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10
Q

BAB’s provide payments from the ____

A

US Treasury

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11
Q

Purchaser of GO bonds should be concerned with ___ risk

A

Market

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12
Q

A client wishing to purchase muni bonds with the utmost safety should buy _____ bonds

A

New Housing Authority

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13
Q

An example of a FEDERALLY taxable bond issued by the municipal government is ______

A

BAB Bonds

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14
Q

Can UIT’s be traded?

A

No

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15
Q

If a customer transfers his holdings from one fund to another within the same family of funds, what are the tax consequences? On the transaction date, ANY ___ or ____ is recognized for tax purposes

A

Gain or loss

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16
Q

A DIVERSIFIED mutual fund may hold, at most, ____% of a corporation’s voting securities

A

100%

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17
Q

Are bid ask quotes corporate bond quotes?

A

No

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18
Q

For breakpoints, it means family units, but only minor children are included. Adults other than spouses are considered _____ persons

A

Separate

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19
Q

The most significant difference between a BDC and any other investment company registered under 1940 is that BDC makes available significant ______ to the investments in their portfolio

A

managerial assistance

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20
Q

Dollar cost averaging will always result in a lower cost per share than the price paid per share EXCEPT when the price for each purchase is _____

A

The same

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21
Q

Capital gains distributed by a mutual fund to shareholders are reported and taxable for the year _____

A

Earned (accrued)

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22
Q

For net revenue pledge, the first priority is ______ and _______

A

Operation, maintenance

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23
Q

When firing up the T, what is in and what is out

A

In- sales proceeds
Out- cost basis

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24
Q

Info about municipal funds is found on

A

EMMA

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25
Muni bonds are good for _____ not _____
Income, growth
26
Open-end investment companies or mutual funds are permitted to acquire up to ___% of the outstanding voting securities of another investment company
3%
27
Original issue premium muni bonds amortize or accrete?
Amortize
28
Original issue discount muni bonds amortize or accrete?
Accrete
29
Investors pay a commission rather than a sales charge when purchasing shares of a ________ investment company
Closed end Fund
30
Investment companies cannot distribute long term capital gains more often than ____ every 12 months
Once
31
If a client has a certificate registered in their name, to be a good delivery, the certificate must be accompanied by a _________ assignment to the brokerage firm on the ____ of the certificate
Properly executed, Reverse side
32
No load funds must not have a conditional deferred ______
sales charges
33
Variable rate muni bond’s main advantage is that their price should remain relatively ______
Stable
34
The _______ privilege offered by open end funds allow investors to exchange shares of an open end fund for another in the same family at a _____ basis
exchange, Net asset value
35
Any ____ will offset a _____
Capital loss, capital gain
36
If a company reports a loss for the year, it is obligated to pay interest on all ____ except ___ bonds because they are income bonds
Debt, adjustment
37
DRS stands for _______ and is where the customer’s name as owner is recorded in _____ entry form at the issuer or its transfer agent
Direct Registration System, book entry
38
The redemptive value of mutual fund shares ______ according to the fund’s portfolio value
fluctuate
39
POP reflects the ____ sales charge the fund distributor collects
Max
40
A moral obligation bond is one where the _________ is empowered but not obligated to appropriate funds to prevent the bond from going into default
governing legislature
41
Holders of convertible bonds pay a _____ interest rate and receive a _____ interest rate
Lower, fixed
42
Stock or bond power represents limited power of assignment and _____
Substitution
43
What 2 things can help analyze the credit worthiness of a revenue bond issuer?
Debt service coverage Management
44
What debt issues have the most junior claim?
Debentures
45
Interest that muni’s pay are _____ tax exempt
Federally
46
Blend/core funds can be a ____ source of investment for most equity investors
Single
47
Class A shares have a ____ sales charge but B shares do not
Front end
48
If you invest in a front end load mutual fund and choose automatic reinvestment, you should expect that DIVIDEND DISTRIBUTIONS will be invested at _____
NAV
49
If you invest in a front end load mutual fund and choose automatic reinvestment, you should expect that CAPITAL GAINS DISTRIBUTIONS be reinvested at _____
NAV
50
Mutual funds that offer automatic reinvestment of dividends and gains distributions must do so at ____
NAV
51
A BDC, which has a majority of its assets invested in debt securities, still makes income distributions in the form of ______
Dividends
52
True or False: For mutual funds, receiving cash distributions may reduce proportional interest in a fund.
True
53
Motor vehicle license fees, income taxes, and sales taxes can all be used to service state ______ bond issues
GO
54
A purchaser of long term AAA bonds should be concerned with _____ risk
Inflation
55
When a customer transfers the proceeds of a sale from one fund to another within the same family of funds, when are all gains and losses recognized? The ____ date
Transfer
56
In safety of principal, general obligation municipal bonds are considered second only to ____ and _____ bonds
US Government, Agency
57
______ funds can beat inflation
Balanced
58
The RTRS captures pricing information and makes it available to the marketplace within _____ minutes of the trade
15
59
Nasdaq Level ____ displays the inside market- highest bid and highest ask
1
60
TRACE is a trade reporting system that must report trades to FINRA no later than ______ after trade _____
15 mins, trade execution
61
Feasibility studies are for Revenue or GO bonds?
Revenue
62
A primary reason for considering _____ refunding is to ______ interest costs
Debt, Reduce
63
Non qualified Dividends received from corporate securities are taxed at the rate the investors _____ will be taxed
Ordinary income
64
Qualified Dividends received from corporate securities are taxed at the _____ rate specified by the IRS and will depend on the investors ________
maximum, Income tax bracket
65
Issuing callable preferred stocks and making a _____ offering raises additional capital
Rights
66
Exercising a _____ when the debt security’s conversion value exceeds the call price, does what?
Call feature, forces conversion
67
If a muni bond rated BBB is pre refunded, the issue is now backed by _____, and the rating will _____
US Gov securities, increase
68
Net revenue divided by annual interest and principal expense is the computation for the ____ ratio for a muni revenue bond issue
Coverage
69
Reg FD requires disclosure by an ____ of securities
Issuer
70
Nasdaq level 1 shows the ____ quote
Inside quote
71
Nasdaq level 3 shows actual ____ quotes
Interdealer
72
Costs of mutual fund operations can include the custodian bank’s ____, _____ paid to the fund’s investment advisor and the ____ costs of SEC filings
Charges, fees, legal
73
Liquidity risk, default risk, and sovereign risk are all _____
Diversifiable
74
Dollar cost averaging DOES NOT decrease the risk of ____
Loss
75
Dollar cost averaging invests a ___ amount of money each period and an employee _____ purchase plan is an example
Fixed, stock
76
When an institution wishes to take a large position in a muni bond issue but does not want its activities to be well known, it will make use of a ____ securities _____
Municipal, brokers broker
77
____ plans require an Actuary’s services
Defined Benefit
78
In an arbitration proceeding involving a customer in an amount over $100,000, a customer can request that all 3 of the arbitrators be selected from the ______
The public sector
79
For _________, since all the interest has been accreted, when the bond matures, there is no capital gain or loss
zero coupon bonds
80
An investor must hold a security for more than _____ months before it’s considered long term
12
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