1.2 Market Structure - ANS-
1.Four Offerings - ANS-
12b-1 Asset Based Fees
also referred to as?
Why used?
When deducted?
Max charge? - ANS-asset based distribution fees (named after sec rule 12b-1)
used cover expenses advertising & dispensing to traders & compensate registered reps for
servicing account (advertising, sales literature, prospectuses added, no longer fund
management exp)
expressed yearly, but charged/reviewed quarterly as % of finances avg overall NAV
max .75% distribution/promotion
to be no load can not charge more .25%
3 Types of Communication with the Public - ANS-retail
correspondence
institutional
three Types of Municipal Fund Securities as Defined by using Rule D-12 - ANS-529 Plans
Able Acccounts
LGIP
three ways to reach a breakpoint - ANS-lump-sum buy
using LOI grant thirteen months 2 reach breakpoint
take advantage of rights of accumulation
529 Contribution Limits - ANS-no federal limits so long as do not exceed amount important to
offer for qualified schooling
many states do make limits
529 Plans
age/profits obstacles? - ANS-tax advantage financial savings plan presented to gain saving for
destiny schooling
no age/income limitations
6 Year Retention Requirements - ANS-blotters, popular ledger, patron acc records, inventory
ledger
a transaction wherein a writer covers role via shopping alternative is called? - ANS-a remaining
buy
,ABLE Accounts
created by means of?
What occurs to earnings earned?
When onset have to be?
Contributions (may be made by who, with what kind of cash, deductible, limits)? - ANS-tax
benefit saving account for indv w disabilities & their families
created after ABLE Act 2014
profits earned not taxed
beneficiary is the acc owner
onset of disability have to be b4 26
contributions made with the aid of each person w after tax $ & is NOT tax deductible, restrained
to certain amt
According to Investment Company Act 1940 economic announcement required to be
despatched out to shareholders...? - ANS-semiannually
ADRs (American Depository Receipts)
in which trade?
Priced and pay dividend in what foreign money?
Dividend rights? - ANS-represents the claim of overseas securities with the real shares being
held by using U. S Banks overseas
- change in U.S markets on an alternate or OTC
- priced and pay dividends in U.S bucks
- have dividend rights
can purchase possession in foreign stock w/o stressful approximately forex issues bc trade in
US market
Advantages of ETFs (three) - ANS-intraday buying and selling, lower expense ratio, purchased
on margin
Agency sponsored
asset sponsored vs mortgaged backed taxed at? - ANS-entities not technically government but
have ties to
ex) Frannie Mae (FNMA)
Freddie Mac (FHLMC)
Sallie Mae (SLMA)
asset subsidized=taxed at fed level (Farm credit score machine, federal home mortgage
financial institution securities)
,mortgage backed taxed in any respect stages
have better yields than treasury securities
Agent vs Principal - ANS-An agent is a person who agrees to symbolize or act for any other,
known as theprincipal.
Agent= no obligation/dedication to shop for
All certified retirement plans are either....? - ANS-defined gain or defined contribution
Allowable ways to qualify for breakpoint whilst purchasing front give up load mutual funds -
ANS-13 m LOI
ROA
Alternative Invstments to Mutual Funds - ANS-ETN, leveraged ETFs
considered dependent products
Annuities - ANS-settlement between man or woman and existence coverage business
enterprise
annuitant can pay premium in lump sum or periodic pmts at future date can give up coverage
and get hold of lump sum payout or start receiving normal income distibutions tht keep for life
earning tax deferred
no restrict to amount invested
may be fixed or variable
Are REITs DPP? - ANS-NOOOO
Are roth IRAs ever tax deductible - ANS-NOOO
Avoidance or company traits........
Maximum difficult to keep away from?
Easiest to avoid?
Most probably averted by means of DPP? - ANS-centralized mgmt
continuity of existence (predetermined tht partnership disolves
cont. Of lifestyles & freely transferable pursuits (GP approval should transfer stocks)
Backing away - ANS-violation in which a market maker fails to honor a posted firm quote to
shop for or sell a security aat a stated rate
Balance Sheets - ANS-show property, liabiity, shareholder fairness at unique second
image businesses financial situation
Bankers Acceptances
pmt date?
Issued at?
Used for what?
Additionally known as? - ANS-in import/export enterprise used as brief time period time draft w
detailed pmt date drawn on a financial institution (essentially a postdated check or line of credit
score)
, pmt date among 180-270 days
issued at bargain to stand fee
Used by means of US corps to finance worldwide exchange
also referred to as invoice of change
BEnefits of certified plans... - ANS-agency contributions are contemporary deductible expese
employee contibutions made with pretax cash
incomes/growth tax deferred till withdraw
protections supplied beneath ERISA
Best Efforts - ANS-securities underwriting in which underwriter acts as agent for provider placed
forth first-rate effort sell as many shares as possible.
Underwriter has no legal responsibility for unsold
company/brokerage
Bid-Ask Spread - ANS-spread receives narrowing as volume will increase
extra activiely traded =narrowing
Bonds and their hobby bills - ANS-hobby pmts equal each 12 months... Bonds=constant income
investments
e-book-access safety - ANS-A safety sold without transport of a certificates. Evidence of
ownership is maintained on records stored via a relevant company; for instance, The Treasury
keeps statistics of Treasury bill clients. Transfer of possession is recorded by getting into the
exchange at the books or electronic files.
Breakpoint - ANS-schedule of amount purchase discounts mutual fund gives
to be had to all and sundry
offer reduced sales price
investment clubs and mother and father w grownup kids are excluded
Breakpoint Sale - ANS--Prohibited
-attempting to make better commissions by means of selling shares just under the factor at
which a income fee is redcued
Broker Dealers
introducing
clearing
prime agents - ANS-purchase/promote securities for own acc or OBO customers
broker(agent)- when execute orders OBO
dealer(primary)- when alternate four very own acc
-contacts w clearing company tht handles execution of orders, has direct dating w purchaser
primary purpose- customer support act as center man
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