Final #5 Flashcards
When a short stock receives a stock dividend, the _________ of the securities receives the stock dividend, and the __________ pays the stock dividend
- Lender receives
- Borrower pays
The borrower of securities must pay any dividends declared on that stock to the person from whom the stock was borrowed. Thus, the borrower of the securities must pay any dividends to the lender of those securities
Quotes from all of the following sources are found on the Consolidated Quotations Service (CQS) EXCEPT:
NASDAQ
Who appoints trustees, and what is their responsibility?
Under the requirements of the Trust Indenture Act of 1939, trustees are appointed by the issuer. The trustee is appointed to protect the interests of the bondholders
Are mutual funds marginable?
No
Are ADR’s required to be registered?
Yes. ADRs (American Depositary Receipts) are non-exempt securities and must be registered with the SEC under the Securities Act of 1933.
The manager of a mutual fund is known as the:
Investment Adviser
The person who establishes a mutual fund and registers the fund with the SEC before the security can be sold is the:
Sponsor
What is the difference between a Stop order and a Limit order
If a “Stop” order is elected, it becomes a market order to be filled at the first opportunity. Thus, the actual price at which the order is executed is not known.
On the other hand, a “Limit” order specifies that the execution must comply with the limit price specified or better. Thus, limit orders are filled at that price or better.
What is the SEC’s definition of a research report?
any client communication that analyzes individual securities and provides information reasonably sufficient upon which to base an investment decision and is distributed to at least 15 persons
Insiders must report what changes to the SEC?
Changes in their holdings
Can structured products be margined?
No
The spread on a new municipal offering is set at 1 1/4 points. The selling concession is 3/8 point and the additional takedown is set at 1/2 point. If a selling group member places an order for the issue, how much will the syndicate earn on that sale?
4/8ths (1/2) point.
Do actions of the federal reserve affect short term or long term rates more?
Actions of the Federal Reserve tend to affect short- term rates more than long- term rates
What is Net Bonded Debt?
Net Bonded Debt of a municipal issuer includes all bonded debt except for self supporting revenue bonds. This is the debt that must be serviced from tax collections.
A customer has been receiving confirmations and statements by mail and asks the registered representative if these can be sent by e-mail. The proper response is that this:
can be done if the customer requests by e-mail
