Securities Industry Essentials Exam || Definition of Key Terms and Principles (100% Correct)
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Securities Industry Essentials
Institution
Securities Industry Essentials
Securities Industry Essentials Exam || Definition of Key Terms and Principles (100% Correct)
Securities Industry Essentials Exam || Definition of Key Terms and Principles (100% Correct)
Three Phases of Underwriting - ANSWER - 1. prior to filing of the registration statement, no sales can be sol...
, Securities Industry Essentials Exam ||
Definition of Key Terms and Principles
(100% Correct)
Three Phases of Underwriting - ANSWER - 1. prior to filing of the registration
statement, no sales can be solicited and no prospectus can be circulated
2. file reg
3. cooling off period: no one can solicit sales during period but indications of interest
can be solicited
4. effective date (offering period may begin): sales can now be solicited but the firm
must use a final prospectus
liquidation - ANSWER - -keeping property or continuing business will not occur and
all property will be taken and sold to repay all debts
reorganization - ANSWER - -entity will likely be able to retain property and continue
doing business but must submit and stick to a plan that will allow the repayment of
some of all of its existing debts
why include preferred stock on a portfolio? - ANSWER - -fixed income from
dividends
-prior claim ahead of common stock
-convertible preferred sacrifices income in exchange for potential appreciation
straight (noncumulative) preferred stock - ANSWER - -no special features beyond
the stated dividend payment
cumulative - ANSWER - accrues payments due its shareholders in the event
dividends are reduced or suspended
callable preferred stock - ANSWER - -stock that can be bought back from investors
at a stated price after a speciifed date
convertible preferred stock - ANSWER - stock that permits the preferred
stockholders to convert their shares into common stock
restricted securities - ANSWER - Those acquired through some means other than a
registered public offering such as private placement
established customer - ANSWER - -someone who's held an account witht eh broker-
dealer for at least one year or
-has made at least three penny stock purchases
term bond - ANSWER - bond structured so that the principal of the whole issue
matures at once. Since the entire principal is repaid at one time, issuers may
establish a sinking fund account to accumulate money to retire the bonds at maturity
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