Sie stuvia Study guides, Class notes & Summaries

Section 1: Knowledge of Capital Markets - ANSWERS The SEC purpose/mission when created jurisdiction authority - ANSWERSprotect investos, maintin fair orderly & efficient markets, facilitate capital formation by congress in 1934 US federal government enforce federal security laws & create laws that regulate securities industry enforces Securities act 1933/1934, trust indenture act 1939, investment company act 1940, investment advisors act 1940 SROs (Self-Regulatory Organiza...

Section 1: Knowledge of Capital Markets - ANSWERS The SEC purpose/mission when created jurisdiction authority - ANSWERSprotect investos, maintin fair orderly & efficient markets, facilitate capital formation by congress in 1934 US federal government enforce federal security laws & create laws that regulate securities industry enforces Securities act 1933/1934, trust indenture act 1939, investment company act 1940, investment advisors act 1940 SROs (Self-Regulatory Organiza...

What type of risk is unique to a specific industry, business enterprise, or investment type? - ANSWERSNonsystematic risk Under which of the following circumstances is an investor in a position to acquire stock? - ANSWERSBuy a call, sell a call (The holder of a call has the right to buy stock at the strike price if exercised. The seller of a put is obligated to buy stock at the strike price if exercised) Options- a premium - ANSWERSthe cost of an option contract, expressed in dollars per sh...

If interest Rates fall the issuer will most likely call which bonds first? - ANSWERSHigh Dividend Rate preferred issues trading at a premium What are some actions by a corporation will affect an individuals common shareholder's equity - ANSWERSConversion of convertible preferred stocks or bond Repurchase of common shares Issuance of additional common shares (Stock splits do not effect shareholders equity but it must be voted on because it effects Par Value) Benefits to a Convertibl...

Which corporate voting procedures entitles a shareholder to one vote per share, and votes must be divided evenly among the candidates being voted on? - ANSWERSStatutory voting What market refers to the trading of exchange-listed securities in the over-the-counter market? These trades allow institutional investors to trade blocks of securities directly, rather than through an exchange, providing liquidity and anonymity to buyers. - ANSWERSThird market An investor sells a naked call on Omikr...

Which corporate voting procedures entitles a shareholder to one vote per share, and votes must be divided evenly among the candidates being voted on? - ANSWERSStatutory voting What market refers to the trading of exchange-listed securities in the over-the-counter market? These trades allow institutional investors to trade blocks of securities directly, rather than through an exchange, providing liquidity and anonymity to buyers. - ANSWERSThird market An investor sells a naked call on Omikr...

A customer writes an MMM January 70 put at 6. The maximum potential gain on this position is - ANSWER 600 Your customer is long 1 October 75 put at 2. The customer's maximum gain potential is - ANSWER 7300 Large time deposits of more than $100,000 are considered to be found in what part of the money supply? - ANSWER M3 By purchasing shares of stock in a company, investors can benefit from which of the following? An increase in the price of the shares An increase in price of the compa...