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Which of the following option strategies, besides going long a call, can be used to purchase stock below its current market value? A) Short call B) Short straddle C) Long put D) Short put A) Short call B) Short straddle C) Long put D) Short put If the put is exercised by the owner, the wri...
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Add to cartWhich of the following option strategies, besides going long a call, can be used to purchase stock below its current market value? A) Short call B) Short straddle C) Long put D) Short put A) Short call B) Short straddle C) Long put D) Short put If the put is exercised by the owner, the wri...
Under SEC rules, the purchaser of Regulation D private placement must complete and sign a(n): accredited investor questionnaire How does restricted stock differ from control stock in a Rule 144 sale? control stock must be held fully paid for a minimum of 6 months prior to sale while restricted st...
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Add to cartUnder SEC rules, the purchaser of Regulation D private placement must complete and sign a(n): accredited investor questionnaire How does restricted stock differ from control stock in a Rule 144 sale? control stock must be held fully paid for a minimum of 6 months prior to sale while restricted st...
Calculating Buying Power (Margin Account) Buying Power is 2x SMA. A pattern day trader is 4x min maintenance. Securities exempt from Regulation T margin requirements USTs/Notes/Bonds Munis Government Agencies List of Qualified Retirement Plans IRA's (tax deductible, gains tax deferred until...
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Add to cartCalculating Buying Power (Margin Account) Buying Power is 2x SMA. A pattern day trader is 4x min maintenance. Securities exempt from Regulation T margin requirements USTs/Notes/Bonds Munis Government Agencies List of Qualified Retirement Plans IRA's (tax deductible, gains tax deferred until...
As a Treasury security, TIPS are characterized by which of the following statements? Interest payments are the product of a fixed interest rate times the adjusted principal A member may pay continuing commissions to a representative after he or she ends his or her employment with a member under w...
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Add to cartAs a Treasury security, TIPS are characterized by which of the following statements? Interest payments are the product of a fixed interest rate times the adjusted principal A member may pay continuing commissions to a representative after he or she ends his or her employment with a member under w...
Registered representatives may be compensated based on which of the following? I Trading commissions paid by the brokerage firm to the representative II Trading commissions paid by the customer to the representative III Salary paid by the brokerage firm to the representative IV Salary paid by ...
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Add to cartRegistered representatives may be compensated based on which of the following? I Trading commissions paid by the brokerage firm to the representative II Trading commissions paid by the customer to the representative III Salary paid by the brokerage firm to the representative IV Salary paid by ...
You received a signed broker-to-broker transfer initiation form (TIF) from an established customer desiring to transfer a specifically designated part of his account to your firm, which is eligible to use the Automated Customer Account Transfer Service (ACATS). Your firm is obligated to submit the t...
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Add to cartYou received a signed broker-to-broker transfer initiation form (TIF) from an established customer desiring to transfer a specifically designated part of his account to your firm, which is eligible to use the Automated Customer Account Transfer Service (ACATS). Your firm is obligated to submit the t...
A customer who is short stock will buy a call to: A. hedge the short stock position in a falling market B. protect the short stock position from a falling market C. protect the short stock position from a rising market D. generate additional income in a stable market C. protect the short stock p...
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Add to cartA customer who is short stock will buy a call to: A. hedge the short stock position in a falling market B. protect the short stock position from a falling market C. protect the short stock position from a rising market D. generate additional income in a stable market C. protect the short stock p...
Securities and Exchange Commission (SEC) >responsible for supervision of the capital markets >writes laws that govern the financial markets > Can enforce those laws, even if the broker/dealer or associated person is registered with a self-regulatory authority (SRO). >Governs publicly ...
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Add to cartSecurities and Exchange Commission (SEC) >responsible for supervision of the capital markets >writes laws that govern the financial markets > Can enforce those laws, even if the broker/dealer or associated person is registered with a self-regulatory authority (SRO). >Governs publicly ...
a customer wants to change the name on their account (i.e. after getting married), who must approve it? Registered Principal Must approve the account If a client changes to another registered rep at the same firm, what is the first step? First step would be for the new registered rep to review th...
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Add to carta customer wants to change the name on their account (i.e. after getting married), who must approve it? Registered Principal Must approve the account If a client changes to another registered rep at the same firm, what is the first step? First step would be for the new registered rep to review th...
Opposite of Buy Long Hold Sell Short Write an investor is long 1 XYZ Dec 40 call at 3. just prior to the close of market on the final trading day before expiration, xyz stock is trading at 47. what is the gain/loss to the investor? ANSWER: The investor is long the contract so they have already pa...
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Add to cartOpposite of Buy Long Hold Sell Short Write an investor is long 1 XYZ Dec 40 call at 3. just prior to the close of market on the final trading day before expiration, xyz stock is trading at 47. what is the gain/loss to the investor? ANSWER: The investor is long the contract so they have already pa...
New Account Form -The information required on anew account form would depend upon the type of security that will be traded Required Info on New Account Form -Customer Name -Cash or Margin Account -DOB -SS or tax ID # -citizenship Firms must verify what 4 things? -Name -Address -SS or tax...
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Add to cartNew Account Form -The information required on anew account form would depend upon the type of security that will be traded Required Info on New Account Form -Customer Name -Cash or Margin Account -DOB -SS or tax ID # -citizenship Firms must verify what 4 things? -Name -Address -SS or tax...
Required information on New Account form -Customer name and address/ if joint account* -Cash/margin account -Customer date of birth* -Social security number or Tax ID* -Occupation or if working for Financial services firm -Citizenship -If customer is a director, officer or shareholder of more ...
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Add to cartRequired information on New Account form -Customer name and address/ if joint account* -Cash/margin account -Customer date of birth* -Social security number or Tax ID* -Occupation or if working for Financial services firm -Citizenship -If customer is a director, officer or shareholder of more ...
Security an investment that represents either an ownership or a debt stake in a company Debt Security usually acquired by buying a company's bonds Debt Investment a loan to a company in exchange for interest income and the promise to repay the loan at a future maturity date. Does not confer...
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Add to cartSecurity an investment that represents either an ownership or a debt stake in a company Debt Security usually acquired by buying a company's bonds Debt Investment a loan to a company in exchange for interest income and the promise to repay the loan at a future maturity date. Does not confer...
Wash trades Buying and selling to create appearance of trade Trading pools Investors group together and trade stock to move up prices without changing ownership Trading by underwriters Trading new issue before it's effective date Short tender rule Investors can only tender their shares if ...
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Add to cartWash trades Buying and selling to create appearance of trade Trading pools Investors group together and trade stock to move up prices without changing ownership Trading by underwriters Trading new issue before it's effective date Short tender rule Investors can only tender their shares if ...
Securities Act of 1933 Federal legislation requiring the full fair disclosure of all material information about the issuance of new securities. Securities Exchange Act of 1934 Federal legislation that established the Securities and Exchange Commission. The act aims to protect investors by regulat...
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Add to cartSecurities Act of 1933 Federal legislation requiring the full fair disclosure of all material information about the issuance of new securities. Securities Exchange Act of 1934 Federal legislation that established the Securities and Exchange Commission. The act aims to protect investors by regulat...
FINRA: Correspondence Correspondence, which is defined as any written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar-day period. Can you purchase securities prior to registration? Settlement? Cannot purchase securities prio...
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Add to cartFINRA: Correspondence Correspondence, which is defined as any written or electronic communication that is distributed or made available to 25 or fewer retail investors within any 30 calendar-day period. Can you purchase securities prior to registration? Settlement? Cannot purchase securities prio...
A registered principal or registered representative must retake the qualifying exam if his or her registration has been revoked or terminated for a period of ____________ or more. A.) 1 year B.) 5 years C.) 3 years D.) 2 years D.) 2 Years A member may maintain a representative registration fo...
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Add to cartA registered principal or registered representative must retake the qualifying exam if his or her registration has been revoked or terminated for a period of ____________ or more. A.) 1 year B.) 5 years C.) 3 years D.) 2 years D.) 2 Years A member may maintain a representative registration fo...
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