Glossary Terms

Question 1

Accredited investor

Answer 1

As defined in Rule 501 of Regulation D, any institution or individual meeting minimum net worth requirements for the purchase of securities qualifying under Regulation D registration exemption. An individual accredited investor is generally accepted to be one who, individually or with a spouse, has a net worth, excluding the net equity in the primary residence, of $1 million or more, or has had an annual income of $200,00 or more in each of the two most recent years (or 300,000 jointly with a spouse), and who has a reasonable expectation of reaching the same income level in the current year.

Question 2

Accumulation stage

Answer 2

The period during which contributions are made to an annuity account.

Question 3

Accumulation unit

Answer 3

An accounting measure used to determine an annuitant’s proportionate interest in the insurer’s separate account during an annuity’s accumulation (deposit) stage.

Question 4

Active Management Style

Answer 4

Unlike passive style, analysts believe they can identify industries that are undervalued or over valued in order to weight them appropriately and achieve returns in excess of the market. Some managers engage in sector rotation, which is overweighting or underwieghting industries based on the current phase of the business cycle.

Question 5

Adjusted basis

Answer 5

The value attributed to an asset or security that reflects any deduction taken on, or capital improvements to, the asset or security. Adjusted basis is used to compute the gain or loss on the sale or other disposition of the asset or security.

Question 6

Adjusted gross income (AGI)

Answer 6

Gross income from all sources minus certain adjustments to income, such as deductible contribution to an ITA and net capital losses. It is basically the amount of income that will be subject to tax.

Question 7

Administrator

Answer 7

An official or agency that administers a state’s securities laws.

Question 8

Adoption

Answer 8

A social media term meaning that a securities firm links to a third-party site and indicates that it endorses the content on the site.

Question 9

Advertisement

Answer 9

Any notive, circular, letter, or other writted communication addressed to more than one person, or any notice or other announcement in any publication or by radio or television, that offers (1) any analysis, report, or publication concerning securities, or that is to be used in making any determination as to when to buy or sell any security, or which security to buy or sell; or (2) any graph, chart, formula, or other device to be used in making any determination as to when to buy or sell a security, or which security to buy or sell; or (3) any other investment advisory service with regard to securities

Question 10

Agency Cross Transaction

Answer 10

For an advisory client, a transaction in which a person acts as an investment adviser in relation to a transition in which that investment adviser, or any person controlling, controlled by, or under common control with that investment adviser, acts as broker for both an advisory client and for another person on the other side of the transaction.

Question 11

Agency Issue

Answer 11

A debt security issued by an authorized agency of the federal government. Such an issue is backed by the issuing agency itself, not by the full faith and credit of the US government (except GNMA issues).

Question 12

Agency Transaction

Answer 12

A transaction in which a broker-dealer acts for the accounts of others by buying or selling securities on behalf of customers. ( Syn: agency basis, principal transactions)

Question 13

Agent

Answer 13

(1) An individual who affects securities transactions for the accounts of others. (2) Under the state law, a securities sales person who represents a broker-dealer or an issuer when selling or trying to sell securities to the investing public; this individual is considered an agent whether he actually received or simply solicits orders.

Question 14

Aggressive Investment Strategy

Answer 14

A method of portfolio allocaton and mangement aimed a achieving maximum return. Aggressive investors place a high percentage of their investible assets in equity securities and a far lower percentage in safer debt securities and cash equivalents, and they pursue aggressive policies including margin trading, arbitrage, and option trading.

Question 15

Algorithmic trading

Answer 15

Computerized trading using propietary algorithms. There are two types of algorithmic trading. Execution trading is when an order (often a large order) is executed via an algorithmic trade. The program is designed to get the best possible price. It may split the wider into smaller pieces and execute at different times. The second type is not executing a set order but looking for small trading opportunities in the market. It is estimated that more that 50% of stock trading volume in the United States is currently being driven by algorithmic trading. AKA high frequency trading.

Question 16

All or non order (AON)

Answer 16

An order that instructs the floor broker to execute the entire order in one transaction; if the order cannot be executed in its entirety, it is allowed to expire.

Question 17

Alpha

Answer 17

The risk-adjusted returns that a portflio manager generates in excess of the risk adjusted returns expected by CAPM.

Question 18

Alternative Minimum Tax

Answer 18

An alternative tax computation that adds certain tax preference items back into adjusted gross income. If the AMT is higher than the regular tax liability for the year, the regular tax and the amount by which the AMT exceeds the regular tax are paid.

Question 19

American depositary reciept (ADR)

Answer 19

A negotiable certificate representing a given number of shares in a foreign corporation. It is issued by a domestic bank. ADRs are bought and sold in the American securities markets, and are traded in English and US dollars.

Question 20

Anti-dilutive covenant

Answer 20

A protective clause found in most convertable issues (preferred stock or debentures) that adjusted the conversion rate for stock splits and/or stock dividends. This ensures that the holder of the convertible will not suffer a dilution in value.

Question 21

Appreciation

Answer 21

The increase in an assets value

Question 22

Arbitrage

Answer 22

A legal strategy that generates a gaurenteed profit from a transaction. A common form of arbitrage is the simultaneous purchase and sale of the same security in different markets at different prices to lock in profit. This is not considered market manipulation.

Question 23

Ask

Answer 23

An indication by a trader or dealer f a willingness to sell a security or commodity; the price at which an investor can buy from a broker dealer.

Question 24

Assessable Stock

Answer 24

A stock that is issued below its par or stated value. The issuer and/or creditors have the right to asses the shareholder for the deficiency. All stock issued today is nonassessable.

Question 25

Asset Class Allocation

Answer 25

Dividing an investment portfolio among differnt asset categories, such as stock, bond. cash, and tangible assets such as real estate and precious metals and other commodities.

Question 26

Auction Market

Answer 26

A market in which buyers enter competative bids and sellers enter competitive offers simultaneously. The NYSE is an auction market.

Question 27

Audited Financial Statement

Answer 27

A financial statement of a program, a corp., or an issuer that has been examined and verified by an independent certified public accountant.

Question 28

Average basis

Answer 28

An accounting method used when an investor has made multiple purchased at different prices of the same security; the mothd averages the purchase prices to calculate an investor's cost basis in shares being liquidated. The difference in the average cost basis and the selling price determines the investor's tax liability.

Question 29

Back-end load

Answer 29

A commission or sales fee that is charged when mutual fund shares or variable annuity contracts are redeemed. It declines annually, decreasing to zero over an extended holding period - up to 8 years - as described in the prospectus.

Question 30

Balanced fund

Answer 30

A mutual fund whose stated investment policy is to have at all times some portion of its investment assets in bons and preferred stock, as well as in common stock, in an attempt to provide both growth and income.

Question 31

Balanced Investment Strategy

Answer 31

A method of portfolio allocation and mangement aimed at balancing rist and return. A balanced portfolio may combine stocks, bonds, packaged products such as investment companies, DPPs, or REITs, and cash equivalents.

Question 32

Balance of Payments

Answer 32

An international accounting record of all transactions made by one particular country with others during a certain period; it compares the amount of foreign currency the country has taken in with the amount of its own currency it has paid out.

Question 33

Balance of Trade

Answer 33

The largest component of a country's balance of payments; it concerns the export and import of merchandise (not services). Debit items include imports' foreign aid, domestic spending abroad, and domestic investments abroad. Credit items include exports, foreign spending in the domestic economy, and foreign investments in the domestic economy.

Question 34

Balance Sheet

Answer 34

A report of a corp's financial condition at a specific time.

Question 35

Balance sheet equation

Answer 35

Assets = liabilties + shareholders equity

Question 36

Bank holding company

Answer 36

A holding company whose primary assets is a commercial bank

Question 37

Basis

Answer 37

Another term for yield to maturity (ie this bond is selling at a 5.78 basis)

Question 38

Basis Point

Answer 38

A measure of a bond's yield, equal to 1/100 of 1% of yield. A bond whose yield increases from 5% to 5.5% is said to increase by 50 basis points.

Question 39

Bear

Answer 39

An investor who acts on the belief that a security or the market is falling or will fall.

Question 40

Bear Market

Answer 40

A market in which prices of a certain group of securities are falling or are expected to call.

Question 41

Benchmark Portfolio

Answer 41

A model portfolio of a large numbe of assets, such as the S&p 500, against which the performance of a funded or portfolio is measured.

Question 42

Beta

Answer 42

A means of measuring the co-movement of the return of a security or portfolio of securities to the return of the overall market. A beta of 1 indicates that the security's return will be expected to move in tandem with the market. a beta greater that 1 indicates that the security's returns will be expected to exceed those of the market. A beta less than 1 means returns will be expected to be lower than those of the market.

Question 43

Bid

Answer 43

An indication by an investor, a traderm or a dealer of a willingness to buy a security; the price at which an investor can sell to a broker-dealer.

Question 44

Black-Scholes

Answer 44

One of the most popular options pricing models. Often shows up on the exam as an incorrect answer.

Question 45

Black Trade

Answer 45

A large trading order, definded as an order that consists of 10,000 or more shares of a given stock or at total market value of $2100,00 or more (syn block sale)

Question 46

Blue Sky Laws

Answer 46

The nickname for state regulations governing the securities industry. The term was coined in 1911 by a Kansas Supreme Court Justice who wanted regulation to protect against "speculative schemes that have no more basis than so many feet of blue sky"

Question 47

Board of Directors

Answer 47

Individual elected by stockholders to establish corp management policies. A board of directors decided, among other issues, it an when dividend will be paid to stockholders.

Question 48

Bona fide

Answer 48

From the Latin "good faith", something that is bone fide is genuine, authentic, and real.

Question 49

Bond

Answer 49

A issueing company's legal obligation to repay the principal or a loan to bond investors at a specified future date. Bonds are usually issued with par or fave values of $1000, representing the amount of money borrowed. The issuerpromises to pay a percentage of the par value as interest on the borrowed funds. The interest payment is stated on the face of the bond at issue.

Question 50

Bond Fund

Answer 50

A mutual fund whose incestment objective is to provide stable income-producing instruments, which may include corporate, government, or municipal bonds.

Question 51

Bond Quote

Answer 51

One of a number of quotations listed in the financial press and most daily news papers that provide representative bid prices from the previous day's bond market. Quotes for corporate and government bonds are percentages of the bonds' face values (usually $1000). Corporate bonds are quoted in increments of 1/8. Government bonds are quoted in 1/32. Municipal bonds maybe quoted on a dollar basis or on a yield-to-maturity baisi.

Question 52

Bond Rating

Answer 52

An evaluaton of the possibility of a bone issuers default, based on an analysis of the issuer's financial condition and profit potential. Standard and Poor's, Moody's Investor servce, and Fitch Investors Service, among others provide bond rating service.

Question 53

Bond Ratio

Answer 53

One of several tools used by bond analysts to assess the degree of safety offered by a corporation's bonds. It measures the percentage of the corporation's capitalization that is provided by long-term debt financing, = total face value of the bond / total capitalization.

Question 54

Bond Yield

Answer 54

The annual rate of return on a bond investment. Types of yield include nominal yield, current yield, yield to maturity, and yield to call. Their relationships carry according to whether the bond in quston is as discount, premium, or par.

Question 55

Book-entry security

Answer 55

A security sold iwthout delivery of a certificate. Evidence of ownership is maintained on records kept by a central agency; id the Treasury keeps records of Treasury Bill purchases. Transfer of ownershipis recorded by entering the change on the books or electronic files.

Question 56

Book Value per Share

Answer 56

A measure of the net worth of each share of common stock - is calculated by subtracting intangible assets and preferred stock from total networth, then dividing the result by the number of common shares outstanding

Question 57

Brady Bonds

Answer 57

Debt instruments, generally from third world countries, that may have a Treasury bond as collateral.

Question 58

Breathdth-of-market Theory

Answer 58

A technichal analysis theory that predicts the strength of the market according to the number of issues that advance or decline in a particular trading day.

Question 59

BRIC

Answer 59

An acronym referring to investments in Brazil, Russia, India, and China

Question 60

Bridge Loan

Answer 60

A short-term loan made to bridge the gap until permanent financing is arranged.

Question 61

Brochure

Answer 61

A written disclosure statement that investment advisers mush provide to most clients and prospective clients. The form ADV Part 2A may be used for this purpose.

Question 62

Brochure Supplement

Answer 62

A written disclosure statement containing certain information about investment adviser's supervised persons. This disclosure is usually accomplished by the delivery of Form ADV Part 2B to most clients and prospective clients.

Question 63

Broker

Answer 63

(1) An individual or a firm that charges a fee or a commission for executing buy and sell orders submitted y another individual or firm. (2) The role of a firm when it acts as an agent for a customer and charges the customer a commission for is services.

Question 64

Broker-Dealer

Answer 64

A person in the business of buying and selling securities. A firm may act as both broker (agency) and dealer (principal), but not in the same transaction. Broker-dealers normally must register with the SEC, the appropriate SROs, and andy state in which they do business.

Question 65

Bull

Answer 65

An investor who acts on the belieft that a security or the market is rising or will rise.

Question 66

Bull Market

Answer 66

A market in which prices of a certain group of securities are rising or will rise.

Question 67

Business cycle

Answer 67

A predictable long-term pattern of alternating periods of economic growth and decline. The cycle passes through four stages: Expansion, Peak, contraction, trough.

Question 68

Business Risk

Answer 68

The risk inherent in equity securities that poor management decisions will have a negative impact on the stocks performance. Can be reduced with diversification.

Question 69

Buy Stop Order

Answer 69

An order to buy a security that is entered at a price above the current offering price and that is triggered when the market price touches or goes through the buy stop price.

Question 70

Bypass Trust

Answer 70

A trust that is funded with property in an amount equal to the exemption equivalent of the transfer tax credit amount applicable to the decedent ($11.4 million in 2019); Thus, the property is not subject to federal estate tax - see generation skipping trust.

Question 71

Calendar Year

Answer 71

For accounting purposes, a year that ends on December 31. When an accounting years ends any other time it is called a fiscal year.

Question 72

Call

Answer 72

(1) An option contract giving the owner the right to buy a specified amount of an underlying security at a specified price within a specified time. (2) The act of exercising a call option.

Question 73

Callable Bond

Answer 73

A type of bond issued with a provision allowing the issuer to redeem the bond before maturity at a predetermined price.

Question 74

Callable Preferred Stock

Answer 74

A type of stock issued with a provision allowing the corporation to call in the stock at a certain price and retire it.

Question 75

Call Buyer

Answer 75

An investor who pay a premiium for an option contract and receives, for a specified time, the right to by the underlying security at a specified price.

Question 76

Call date

Answer 76

The date, specified in the prospectus of every callable security, after which the security's issuer has the option to redeem the issue at par or at par plus a premium.

Question 77

Call Protection

Answer 77

A provision in a bond indenture stating that the issue is noncallablefir a certain period after the original issue date.

Question 78

Call Provision

Answer 78

The written agreement between an issuer and it bondholders or preferred stockholders giving the issuer the option to redeem its senior securities at a specified price before maturity and under certain conditions. SYN Call feature.

Question 79

Call Risk

Answer 79

The potential for a bond to be called before maturity, leaving the investor without the bond's current income. Because this is more likely to occur during time of falling interest rates, the investor may not be able to reinvest his principal at a comparable rate of return.

Question 80

Call Writer

Answer 80

An investor who recieves a premium and takes on, for a specified time, the obligation to sell the underlying security at a specified price at the call buyer's discretion.

Question 81

Capital Appreciation

Answer 81

In increase in market price

Question 82

Capital Asset

Answer 82

All tangible property, including securities, real estate, and other property, held for long term.

Question 83

Capital Asset Pricing Model (CAPM)

Answer 83

A securities market investment theory that attempts to derive the expected return on an asset on the basis of the asset's systematic risk.

Question 84

Capital Gain

Answer 84

The profit realized when a capital asset is sold for a higher price than the purchase price.

Question 85

Capitalization

Answer 85

The sum of a corporations long-term debt, stock, and surpluses. SYN Invested Capital.

Question 86

Capitalization Ratio

Answer 86

A measure of an issuer's financial status that calculates the value of its bonds, preferred stock, or common stock as a percentage of its total capitalizations.

Question 87

Capital Loss

Answer 87

The loss incurred when a capital asset is sold for a price lower than the purchase price.

Question 88

Capital Market

Answer 88

The segment of the securities market that deals in instruments with more than one year to maturity - that is, long-term debt and equity securities. In contrast, the money market is the raising of short-term capital such as treasury bills.

Question 89

Capital Stock

Answer 89

All of a coprorations outstanding preferred stock and common stock, listed at par value.

Question 90

Capital Structure

Answer 90

The composition of long-term funds (equity and debt) a corporation has as a source for financing.

Question 91

Capital Surplus

Answer 91

The money a corporation recieves in excess of the stated value of a stock at the time of first sale. SYN paid-in capital, paid-in surplus.

Question 92

Capping

Answer 92

An illegal from of market manipulation that attempts to keep the price of a subject security from rising. It is used by those with a short position.

Question 93

Cash account

Answer 93

An account in which the customer is required by the SEC's Regulation T to pay in full for securities purchased not later than two days after the standard payment period set by industry practice codes.

Question 94

Cash Dividend

Answer 94

Money paid to a corporation's stockholders out of the corporation's current earning or accumulated profits. The board of directors must delcare all dividends.

Question 95

Cash equivalent

Answer 95

A security that can be readily converted into cash. examples include Treasury Bills, certificates of deposits, and money market instruments and funds.

Question 96

Cash Flow

Answer 96

The money recieved by a business minus the money paid out. Cash flow is also equal to net income plus depreciation or depletion.

Question 97

Cease and disist order

Answer 97

Used by an Administrator when it appears that a registered person has or is about to commit a violation. May be issued with or without a prior hearing.

Question 98

Certificate of deposit (CD)

Answer 98

A traditional CD pays a fixed interest rate over a specific period of time. When that term ends, you can withdraw your money or roll it into another CD. These are insured up to $250,000 by the FDIC and are considered the est method of preservation or capital.

Question 99

Chartist

Answer 99

A securities analyst who uses charts and graphs of the past price movements of a security to predict its future movements.

Question 100

Chicago Board Options Exchange (CBOE)

Answer 100

The self-regulator organization with jursidiction over all writing and trading of standardized options and related contracts listed on that exchange. Also, the first national securities exchange for the trading of listed options.

Question 101

Chicago Stock Exchange

Answer 101

Registered stock exchange located in Chicago's down town "Loop" Referred to with the initials CHX.

Question 102

Chinese Wall

Answer 102

A descriptive name fro the division within a brokerage firm that prevents inseder information from passing from corporate advisers to investment traders, who could make use of information to reap illicit profits. The preferred term today is information barriers.

Question 103

Churning

Answer 103

Excessive trading in a customer's account by an agent who ignores the customer's interest and seeks only to increase commissions; violates NASAA's policies on unethical business pracitces.

Question 104

Class A Share

Answer 104

A class of mutual fund share issued with a fron-end sales load. A mutual fund offers different classes of shares to allow investors to choose the type of sales charge they will pay.

Question 105

Class B Share

Answer 105

A class of mutual fund share issued with a back-end load. A mutual fund offers different classes of shares to allow investors to choose the type of sales charge they will pay.

Question 106

Class C Share

Answer 106

A class of mutual fund share issued with a level load. A mutual fund offers different classes of shares to allow investors to choose the type of sales charge they will pay.

Question 107

Closed-end Investment Company

Answer 107

An investment company that issues a fixed number of shares in an actively managed portfolio of securities. The shares may be of several classes; they are traded in the secondary marketplace, either on a stock exchange or over the counter. The market price of shares is determined by supply and demand and NOT by NAV. Syn: Publically traded fund, close-end management company.

Question 108

Closing Purchase

Answer 108

An option transaction in which the seller buys back an option in the same series; the two transactions effectively cancel each other out and the position is liquidated.

Question 109

Coincident Indicator

Answer 109

A measureable economic factor that varies directly ad simultaneously with the business cycle, thus indicating the current state of the economy. Examples: non agricultural employment, personal income, and industrial production.

Question 110

Collateral

Answer 110

Certian assets set aside and pledged to a lender for the duration of a loan. If the borrower fals to meed obligations to pay principal or interest the lender has claim to the assets.

Question 111

Collateralized Mortagage Obligation (CMO)

Answer 111

A mortgage-backed corporate security. These issues appempt to return interest and principal at a predetermined rate..

Question 112

Collateral Trust Bond

Answer 112

A secured bond backed by stocks or bonds of another issuer. The collateral is help by a trustee for safekeeping. SN: Collateral Trust Certificate.

Question 113

Combination Privilege

Answer 113

A benefit offered by a mutual fund whereby the investor may qualify for a sales charge breakpoint by combining separate investments in two or more mutual funds under the same management.

Question 114

commercial paper

Answer 114

An unsecured, short-term promissory note issued by a corporation for financing accounts recievable and inventories. It is usually issued at a discount reflecting prevailing market interest rates. Maturities range up to nine months.

Question 115

Commingling

Answer 115

The combining by a brokerage firm of one customer's securities with another customer's securities and pledging them as joint collateral for a bank loan; unless authorized by the customer, this violates SEC Rule 15c2-1.

Question 116

Commission

Answer 116

A service charge an agent assesses in return for arranging a securities purchase or sale. A commission must be fair and reasonable, considering all the relevant factors of the transaction. SYN sales charge.

Question 117

Common Stock

Answer 117

A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy.

Question 118

Complex Trust

Answer 118

A trust that accumulates income over time and is not required to make scheduled distributions to it beneficiaries.

Question 119

Conduit Theory

Answer 119

A means for an investment company to avoid taxation on net investment income distributed to shareholders. If a mutual fun acts as a conduit for the distribution of net investment income, it may qualify as a regulated investment company and be taxed only on the income the fund retains.

Question 120

Confirmation

Answer 120

A printed document that states the trade date, settlement date, and money due from or owed to a customer. It is sent of given to the customer on or before the settlement date.

Question 121

Constant Dollar Plan

Answer 121

A formulat mehod of investing that attempts to maintain a fixed dollar, rather than ratio, amount in a specific asset class. Periodically , the account is reviewed and the specified asset class is either sold or purchased in order to get the fixed dollar level.

Question 122

Constant ratio Plan

Answer 122

A formula method of investing that contemplates maintaining a fixed ratio, rather than a dollar amount, between specific asset classes in the portfolio. Periodically, the account is reviewed and the specified asset class is either sold or purchased in order to get the fixed ratio level.

Question 123

Consumer Price Index

Answer 123

A measure of price changes in a :market basket" of consumer goods and services used to identify periods of inflation or deflation.

Question 124

Consumption

Answer 124

A term used by economists to refer to the purchase by household units of newly produced goods and services.

Question 125

Contraction

Answer 125

A period of general economic decline, one of the business cycle's four stages.

Question 126

Contributory Plan

Answer 126

A retirement plan to which both the employee and the employer make contributions.

Question 127

Control Person

Answer 127

(1) A director or an officer of an issuer (2) A stockholder who ownes more that 10% of any class of a corporation's outstanding securities (3) Spouse or other immediate family of any of the previous. Under the Investment Act of 1940, a control person owns more that 25% of the costing securities and, under the Investment Advisors Acot of 1940, it is 25% or more. (Insider)

Question 128

Control Security

Answer 128

Any security owned by a director or an officer of the issuer or by a stockholder who owns more that 10% of any class of a corporation's outstanding securities. Who owns a securities, the the security itself, determines whether it is a control security.

Question 129

Conversion Parity

Answer 129

Two securities, one of which can be converted into the other, of equal dollar value. A convertible security holder can calculate parity to help decide whether converting would lead to a gain or loss.

Question 130

Conversion Price

Answer 130

The dollar amount of a convertible securities's par value that is exchangeable for one share of common stock.

Question 131

Conversion privilege

Answer 131

A feature the issuer adds to a security that allows the holder to change the security into shares for common stock. This makes the security attractive to investors and, thus, more marketable.

Question 132

Conversion ratio

Answer 132

The number of shares of common stock per par value amount that the holder would receive for converting a convertible bond or preferred share.

Question 133

Convertible Bond

Answer 133

A debt security, usually in the form of a debenture, that can be exchanged for equity securities if the issuing corporation at a specified price or rate.

Question 134

Convertible Preferred Stock

Answer 134

An equity security that can be exchanged for common stock at a specified or rate. dividends may be cumulative or noncumulative.,

Question 135

Convextity

Answer 135

The most accurate way of indicating a debt securities sensitivity to changes in interest rates.

Question 136

Cooling-off Period

Answer 136

The period (a minimum of 20 days) between a registration statement's filing date with the SEC and the registratio's effective date. In practice, varies in length.

Question 137

Corporate Account

Answer 137

An account held in a corporations name. The corporate agreement, signed when the account is opened, specifies which officers are authorized to trade in the account. In addition to standard margin account documents, a corporation must provide a copy of its charter and bylaws authorizing a margin account.

Question 138

Corporate Bond

Answer 138

A debt security issued by a corporation. a corporate bond typically has a par value or $1000, its interest is taxble, and it has term maturity.