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SIE Chapter 1 Questions &Exam (elaborations) answers 100% satisfaction guarantee
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SIE Chapter 1 Questions &Exam (elaborations) answers 100% satisfaction guarantee
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A person that engages in the business of effecting agency transactions in securities for the account ofothers
Recieves Commision
Follow ABC:
Agency
Broker
Commission - What is a broker?
a security that represents the amount of idebtedness(principal) that the issuer owes to the investor.
(promise to pay)
(Borrowing money - Debt (Bonds)
after the primary distribution of the issuers shares, the investor that purchased the shares from the
issuer will inevitably want to sell the, The market that brings together buyer and sellers.
1934 Securites Act - Secondary Market
any person that engages in the business of buying and selling securities for its own account
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Follows:
Principal
Dealer
Markup/down - Dealer
are market centers that allow for both the quoting and trading of exchanged listed securities -
Electronic Communication Networks
Area that works directly with the issuers to arrange and structure their securities offerings. Often
referred as uderwriters.
Also assist companies that seek to merge with or acquire other companies or those that need to
restructure due to bakruptcy - Investment Banking (IB)
as the securities are sold to investors, most or all of the proceeds received will go to the issuer. Since
the issuance marks the beginning of the shares existence.
Primary Market is regulated by the SEC under the Securities Act of 1933 - Primary Market
, Auctioneer who conrols trading in a given stock - designated market maker (DMM)
barrier where info shouldn't be shared with other side/other departments (investment banking on one
side and research, sales/private client, trading, ops on the other) - Info Barriers
Charges a fee for providing advice to their clients - Investment Advisor
consists of a bundled package of services thats offered to hedge funds, institutions and high networth
individual clients.
Clearing capable for hedge funds. - Prime Brokerage Accounts
defined as a legal entity that sells securities in orer to finance operations - Issuer
Earn Compensation/Commission for executing trades - Broker-Dealers
electronic trading networks where participants can ANONYMOUSLY buy or sell large blocks of
securities - Dark Pools
ensures that all of the paperwork, funds,, and securities transfers that are associated with a trade are
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handled efficiently and according to specific industry standards - Operations
Exchange listed securities being traded over the counter or away from traditional exchanges - Third
Market
Fully disclosed acct- the clearing firms
Omnibus accts- introducing firms - Who keeps books and records
Fully disclosed accts - Clearing firm is responsible for individual client info
handle the execution of trades for both the firms clients and the firms own (propiertary) accouns
Occur in Nasdaq and New York Stock Exchange - Trading
Hold assets in physical form, its much more common for securites to be held in book entry (electronic
form) - Custodians
Insurances companies, reigisted invesntmant companies/advisors, corporations
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