notes 2

Question 1

Indenture

Answer 1

contains info regarding terms and conditions of bonds

Question 2

For stocks, what’s declared by SRO and what’s declared by board of directors?

Answer 2

Ex-dividend date set by SROs

Declaration, record, and payable dates all set by board of directors.

Question 3

what kind of orders can adjusted on ex-dividend date?

Answer 3

Only Orders currently under market price

Question 4

what is the call rate?

Answer 4

rate at which commercial banks charge on loans to broker-dealers for margin purposes

Question 5

What’s an industrial development bond?

Answer 5

issued by municipality, but secured by a lease agreement with a corporation

Question 6

When inheriting mutual fund shares after one’s death, what is the cost basis?

Answer 6

Cost basis is the NAV of shares on the date of the owner’s death

Question 7

For IPOs how long do you nee dto keep delivering prospectuses? for follow-on offerings? Unlisted IPOs?

Answer 7

25, 40, or 90 days

Question 8

What can 12B-1 fees be used for?

Answer 8

Covering costs of distribution of the shares, but not for covering costs of executing trades

Question 9

Class A vs Class b mututal fund shares

Answer 9

Class A - front end sales charge

Class B - contingent deferred sales charge, where if they hold it long enough they waive it

Question 10

How many days does have a company have to file a 10k?

Answer 10

60 days after end of fiscal year

Question 11

Which treasury bills are sold weekly?

Answer 11

3, 6 weeks

Question 12

Can an individual be both donor and beneficiary on a 529 plan?

Answer 12

Only if of legal age

Question 13

POP equation

Answer 13

NAV / Sales charge

Question 14

does client must sign new account form?

Answer 14

No, but principal does

Question 15

Maximum amount one can contribute into a 529 plan?

Answer 15

$15k a person, $30k per couple, can pay up to 5 years in a lump sum so $150k

Question 16

What securities are quoted in discount yield basis?

Answer 16

Treasury Bills

Question 17

LOI features

Answer 17

max duration of 13 months, and may be backdated up to 90 days to include previous purchases. Fund may not stop redemptions during the duration of the LOI

Question 18

529 contributions tax deductible at the ___ level

Answer 18

state level

Question 19

What is a Special assessment bond

Answer 19

GO bonds that are paid by the people who are benefited from project

Question 20

how long can restricted stock be sold over?

Answer 20

90 days

Question 21

OTCBB is a ___ system

Answer 21

quotation system

Question 22

who does the broker-dealer’s AML program need to be approved by?

Answer 22

member of senior management in writing

Question 23

What’s the look back on the contribution limit for muni underwritings?

Answer 23

2 years

Question 24

What can coverdell education accounts be used for?

Answer 24

Elementary and higher education tuition AND EXPENSES. can ALSO CHOOSE YOUR OWN INVESTMENTS - $2K max contribution PER year

Question 25

Tenants in Common?

Answer 25

Join accoutn typically on land. used for business partners, can be used for two or more people, and will be divided upon death of one of the owners (will be determined by deceased’s will). doesn’t have to be equal divide of assets

Question 26

IF RR’s registration becomes inactive, how to requalify and avoid taking the exams again?

Answer 26

Become employed with another member firm within two years

Question 27

How often do member firms need to submit complains to FINRA?

Answer 27

each quarter

Question 28

who does ERISA provide protection to?

Answer 28

Participants in pension plans

Question 29

what trades are in cash accounts, and what are in margin accounts?

Answer 29

Option trading and selling covered calls - in cash or margin

Shorts, and selling uncovered calls need to be in margin account

Question 30

what is a capital call?

Answer 30

when you need to contribute additional capital. For DPPs

Question 31

what does regulation SP do?

Answer 31

Requires BDs, investment companies, and investment advisers registered with SEC to project privacy and confidential info of clients

Question 32

What is a numbered account?

Answer 32

for confidentiality. Customer must provide written statement acknowledging the fact that the account is the customer’s. This must be kept on file at the brokerage firm