Securities Industry Essentials Standard Comprehensive Exam () || With Questions & All Accurate Answers (Graded +)
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Module
Securities Industry Essentials
Institution
Securities Industry Essentials
Securities Industry Essentials Standard Comprehensive Exam () || With Questions & All Accurate Answers (Graded +)
Securities Industry Essentials Standard Comprehensive Exam () || With Questions & All Accurate Answers (Graded +)
Investment bankers assist businesses that seek to raise capital thr...
, Securities Industry Essentials
Standard Comprehensive Exam (2023-
2024) || With Questions & All Accurate
Answers (Graded +)
Investment bankers assist businesses that seek to raise capital through - ANSWER -
the issuance of securities
The research department of a broker-dealer studies both the markets and -
ANSWER - individual issuers in order to issue
recommendations
The trading department of a broker-dealer must be segregated from its investment
banking department by - ANSWER - information barriers.
What is arbitrage? - ANSWER - Buying a stock on one exchange and simultaneously
selling it on another exchange
The reason for the creation of the DTC - ANSWER - to provide a book-entry system
to handle the increase in volume of
securities transactions
The quoted price of a non-listed stock can be found on the ___________ or
____________ - ANSWER - OTCBB or OTC Pink Marketplace
Broker-dealers that receive a commission are acting in an - ANSWER - agency
capacity.
A firm that charges a markup on a stock transaction is acting in a - ANSWER -
dealer (principal) capacity.
A broker-dealer buys a security from an investor at the _____ price. - ANSWER - bid
price
A market maker's quote is 7.10 - 7.15, 20 x 10. This quote indicates the firm's
willingness to buy ____ shares at ____ and sell _______ shares at ________ -
ANSWER - buy 2,000 shares at
7.10 and sell 1,000 shares at 7.15 (20 x 10 represents the number of 100-share
round lots).
A market maker is a member of a stock exchange (or a broker-dealer) that's
responsible for - ANSWER - providing liquidity
by consistently buying and selling securities at its quoted prices.
A married couple who have earned $300,000 of income in each of the last two years
and reasonably expect this
, level to continue is considered an _______ - ANSWER - accredited investor
1035 Exchange - ANSWER - A tax-free exchange between like contracts. This
provision applies to transfers from annuity to annuity, life to life, and life to annuity. It
cannot be used for transfers from an annuity to a life insurance policy.
12b-1 Fee - ANSWER - A section of the Investment Company Act of 1940 that
permits an open-end investment company (mutual fund) to levy an ongoing charge
for advertising and sales promotional expenses. This fee may not exceed .75% and,
if above .25%, the fund may not describe itself as no-load.
401(K) Plan - ANSWER - a tax-deferred retirement plan offered by a private-sector
employer
403(b) Plan - ANSWER - A tax-deferred retirement plan available to employees of
public schools and certain nonprofit organizations.
529 Savings Plan - ANSWER - Plans designed by states to provide tax-advantaged
means of saving for eligible education expenses.
75-5-10 Test - ANSWER - The standard for judging whether an investment company
qualifies as diversified under the Investment Company Act of 1940. Seventy-five
percent of a fund's assets must be invested in such a way that no more than 5% of
its total assets are invested in any one company's voting securities, and no single
investment may represent ownership of more than 10% of any one company's
outstanding voting securities. There are no restrictions on the remaining 25% of the
fund's assets.
ACATS - ANSWER - See Automated Customer Account Transfer Service.
Acceptance, waiver, and consent - ANSWER - A form of plea bargaining under the
Code of Procedure. FINRA's Enforcement Department brings disciplinary actions
against a respondent and, if the respondent agrees, the proposed settlement is
accepted, all rights to a hearing are waived, and the respondent consents to the
penalty submitted.
Account Executive - ANSWER - See registered representative.
Accredited Investor - ANSWER - Any institution or individual meeting minimum
requirements for the purchase of securities qualifying under the Regulation D
registration exemption.
Accrued Interest - ANSWER - The interest that has accumulated since the last
interest payment, up to but not including the settlement date, and that is added to the
contract price of a bond transaction.
Accumulation Stage - ANSWER - The period during which contributions are made to
an annuity contract.
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