Unit 5 New Information and other stuff we just haven’t figured a better place for Flashcards
(9 cards)
Identity Theft
*The crime of taking someone’s
identity by using personal
information;
*SSN, Driver’s License, etc
Disclosures
*Capacity (Broker/Dealer)
*Conflicts of Interest
*Fees
Performance Guarantees
*Guaranteed debt is when a secondary company backs the debt
*No guarantees on actual
performance, ever.
Social Media
*Do not discuss securities in any specific way. General ideas “I can help you save for retirement”, no “Mutual Fund X is a
great fund for those looking to save for retirement”.
*Social Media is Dynamic/InteractiveCommunications.
Advertising
- Include any notice, circular, letter, website, or other writings to 1+ person or any report, chart, formula used to make financial decision
- Identification; firm name, name of preparer if outside firm, Date first used, identification of info not current
- Past Performance usable with disclosures;
- No assurance against future loss
- Includes gains/losses over min 1 year
- No Testimonials
- Offers of free services allowed (no obligation)
Misc Advertising Prohibitions
*Implying research without doing it
*Misleading/inconsistent clauses and hedge clauses
*Implying regulator approval
*Use of unearned titles
*Lack of disclosure of outside data sources
* Charts/Formulas and explain limitations/difficulties
Puts and Calls
10 Words:
Buyers Call Up
Buyers Put Down
Writer think they’re wrong
Call buyers bet the stock will go up.
Call writers think they are wrong so they think it will go down or flat
Put buyers bet stock will go down.
Put writers think they are wrong, so they think it will go up or flat/
“Big Words” (Universal)
*Be careful of
“universal” words like; * Guarantee
* Minimum
* Always
* Must
* All
* Never
“Big Words” (Softer/Vaguer)
*More likely to be a “softer”, or “vaguer”;
* Sometimes
* May
* Can
* Could
* Might
* Rarely
* Usually
