Achievable SIE Exam
1099-div reviews... - ANS-coins dividends, product dividends, capital gains distributions from
mutual price range
*NOT stock dividends
12 b-1 charges - ANS-annual costs charged with the aid of a mutual fund to pay for advertising
and marketing and distribution costs
20 day cooling off duration sports - ANS-begins when registration shape is filed
- prison sports: distribute preliminary prospectus (crimson herring), take warning signs of
interest, post a tombstone
- illegal activities: recommend, advertise, promote, or take a deposit for the brand new trouble
30/360 method for accrued hobby - ANS-assumes 30 days in each month "counted over", used
for corporate and municipal bonds
401(k) - ANS-certified retirement plan for private for-profit organizations, cannot pull cash until
retirement but can follow for a problem withdrawal if going through monetary troubles
403(b) - ANS-qualified retirement plan for non-income businesses, also called tax-sheltered
annuities
529 plans - ANS-country-subsidized schooling financial savings plans that cowl university
charges
- types: prepaid lessons (destiny tuition at cutting-edge charge), college financial savings
(property develop tax deferred)
- can cover as much as $10k noncollege costs annually
- normally non-deductible contributions
- distributions tax free if used for education expenses
- contributions situation to present taxes if over $15k
- if not used for schooling, gains have regular income taxes + 10% penalty
ABLE (Achieving a Better Life Experience) money owed - ANS-financial savings plan for human
beings with disabilities (need to be disabled by way of age 26), contributions made after tax,
qualified distributions tax-loose
authorised investors - ANS-- earnings-based (annual): unmarried is $200k income for two+
years and joint is $300k income
- $1 million of net worth aside from house
- holding the series 7, sixty five, or 82 licenses
- officer or director of the company
- organization with $5 million + in assets
- any entity where all proprietors are authorised traders
gathered hobby - ANS-paid by means of the customer to the vendor for the time the seller held
the bond from the last interest charge date, up to, however now not together with the settlement
date
,accumulation phase - ANS-whilst contributions are made to retirement plan, dying benefit
applies if account proprietor dies for the duration of this segment and beneficiary maintains
extra of amount invested or account price
actual/365 approach for gathered hobby - ANS-counts actual days in every month, used for US
authorities bonds
associate (insider) - ANS-officer, director, or 10% shareholder; subject to volume limits
corporation bonds - ANS-circuitously subsidized through america government, a few default
danger (Federal Farm Credit System, loan organizations, Sallie Mae)
enterprise capacity - ANS-company matches consumers and sellers, earn commission, related
terms: brokers, agents
all or none (AON) order - ANS-fill all shares or none in any respect, a couple of tries allowed
alternative pooled investments - ANS-REITs, hedge funds, direct participation packages (DPPs)
American depositary receipts (ADRs) - ANS-US-registered receipts for foreign investments
created with the aid of home economic firms with foreign branches, traded in US greenbacks in
US markets
-difficulty to currency exchange chance
-no voting or preemptive rights
- dividends paid in USD
-overseas gov't tax withholding creates a US tax credit score
American fashion options - ANS-may be exercised every time, usually for stock alternatives
annuitization alternatives distribution section - ANS-- existence annuity: can pay for lifestyles,
may not be ideal relying on how lengthy investor lives
- lifestyles with length certain: guaranteed bills for life regardless of how long they existence
however in the event that they die inside the time period, payments maintain to beneficiary (less
danger = lower payouts)
- joint and last survivor: in particular for couples, can pay account owners till each pass away
(lowest payout)
anticipation notes - ANS-short-term municipal debt, paid off with future municipal cash flows
balanced finances - ANS-are looking for capital appreciation and profits, invest in stocks and
bonds
bank conserving companies - ANS-organizations that own banks, NOT exempt from SEC
registration
Bank Secrecy Act - ANS-requires corporations to put into effect anti-cash laundering
applications, have to rent an AML officer
banker's acceptance - ANS-used to facilitate international change, 270 days or much less til
maturity
bearer bonds - ANS-owned with the aid of whoever physically possesses them, not issued
within the US
pleasant effort dedication underwritings - ANS-issuer maintains unsold securities and is
dependable, riskier for company -> smaller costs for underwriter
types: mini-max commitments: minimum stocks ought to be offered up to a maximum; all or
none commitments: all stocks need to be offered
, *also called organisation transactions
bid/ask spreads - ANS-maintained by means of marketplace makers and provide the
satisfactory purchase and promote expenses, distinction between bid and ask
- bid: clients promote at this fee, market makers purchase at this fee
- ask: clients buy at this charge, marketplace makers sell at this charge
board of administrators (BOD) - ANS-organization of people voted in by means of stockholders
(one vote according to share), big impact over path and fulfillment of agency
bond anticipation notes (BANs) - ANS-municipal debt paid off with cash raised with the aid of a
destiny bond difficulty
bond counsel - ANS-a group of specialised attorneys that provide criminal opinion on a bond's
validity, legality, and tax-repute
valid: has been accredited by electorate
legal: no law prevents issuance, not over debt restriction
tax-unfastened popularity: residents need to obtain tax-unfastened interests
optimum evaluations are unqualified, qualifications make bond much less marketable
bond parity charge - ANS-inventory fee * conversion ratio
determines whether investor could make a profit
bond rankings - ANS-a measure of default threat; 3 groups: S&P, Moody's, Fitch
funding grade: BBB or above, low default danger
speculative (junk) grade: BB or underneath, excessive default danger
bonds - ANS-a set earnings investment wherein an investor loans money to an entity which
borrows the price range for a described time frame at a variable or constant hobby rate
e book-entry bonds - ANS-possession tracked electronically by transfer agent, all modern
securities are issued on this layout
breakpoint sale guidelines - ANS-- failure to inform investor of a breakpoint is a FINRA violation
concern to penalties
- householding: families residing below one roof can add purchases collectively for a decrease
breakpoint
- combination privilege: merger of more than one purchases for lower income rate
dealer mortgage fee - ANS-fee for financial institution to broker-dealer loans
broking-dealers - ANS-economic corporations that on the whole help their customers buy and
sell securities
brokerage statements rules - ANS-provide a historical view of account interest, safety values,
and normal balances
- quarterly statements sent if there's no funding pastime
- monthly statements sent if there's funding activities
- can preserve patron mail for up to a few months (+ extra three for legitimate reason)
- get entry to equals delivery rule: company should have affordable evidence that purchaser has
internet get admission to to send electronic statements
