notes 2 Flashcards
Indenture
contains info regarding terms and conditions of bonds
For stocks, what’s declared by SRO and what’s declared by board of directors?
Ex-dividend date set by SROs
Declaration, record, and payable dates all set by board of directors.
what kind of orders can adjusted on ex-dividend date?
Only Orders currently under market price
what is the call rate?
rate at which commercial banks charge on loans to broker-dealers for margin purposes
What’s an industrial development bond?
issued by municipality, but secured by a lease agreement with a corporation
When inheriting mutual fund shares after one’s death, what is the cost basis?
Cost basis is the NAV of shares on the date of the owner’s death
For IPOs how long do you nee dto keep delivering prospectuses? for follow-on offerings? Unlisted IPOs?
25, 40, or 90 days
What can 12B-1 fees be used for?
Covering costs of distribution of the shares, but not for covering costs of executing trades
Class A vs Class b mututal fund shares
Class A - front end sales charge
Class B - contingent deferred sales charge, where if they hold it long enough they waive it
How many days does have a company have to file a 10k?
60 days after end of fiscal year
Which treasury bills are sold weekly?
3, 6 weeks
Can an individual be both donor and beneficiary on a 529 plan?
Only if of legal age
POP equation
NAV / Sales charge
does client must sign new account form?
No, but principal does
Maximum amount one can contribute into a 529 plan?
$15k a person, $30k per couple, can pay up to 5 years in a lump sum so $150k
What securities are quoted in discount yield basis?
Treasury Bills
LOI features
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
529 contributions tax deductible at the ___ level
state level
What is a Special assessment bond
GO bonds that are paid by the people who are benefited from project
how long can restricted stock be sold over?
90 days
OTCBB is a ___ system
quotation system
who does the broker-dealer’s AML program need to be approved by?
member of senior management in writing
What’s the look back on the contribution limit for muni underwritings?
2 years
What can coverdell education accounts be used for?
Elementary and higher education tuition AND EXPENSES. can ALSO CHOOSE YOUR OWN INVESTMENTS - $2K max contribution PER year
