Series 66 - B's

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Series 66 - B's
2014-02-13 23:00:02
Series 66

study terms for the series 66
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  1. The main forms of business enterprises are sole proprietorship, partnerships, and corporations. Stockholders in a corporation have limited liability.
    Business Enterprises
  2. Refers to increases and decrease in economic activity over a period of time.
    Business Cycle
  3. Peak - Recession - Trough - Recovery.
    The Business Cycle's four major phases
  4. Buying a call with a lower strike price and selling a call with a higher strike price.

    For example, assume a customer engages in the following:

    Sell 1 ABC July 30 call @ 1
    Buy 1 ABC July 20 call @ 5
    Bullish Call Spread
  5. The interest rates banks charge broker/dealers who borrow money using customers' securities as collateral.
    • Broker's Loan Rate
    • (Call Loan Rate)
  6. Any person engaged in the business of effecting transactions in securities of the accounts of others or for his/her own account.
  7. A ___ acts as agent in a securities transaction and receives a commission.
  8. Refers to the minimum dollar amount of mutual amount shares purchased which will give the customer a volume discount. For ex., a customer who invests $20,000 pays a sales charge of 8% on mutual fund while a customer who invests less than $20,000 would pay a sales charge of 8 1/2%
  9. The point at which the buyer or seller of an option will not realize a gain or loss.
    Breakeven - Options
  10. A security issue which is not available to a purchaser in physical form.The owner of a book entry security has a book entry advice of confirmation as proof of ownership. Book entry securities transfer by journal entry.
    Book Entry
  11. The name of an organization that published the Daily Bond Buyer and Weekly Bond Buyer. Any significant new issue of a municipal bond will be advertised in the Daily Bond Buyer through a Notice of Sale.
    Bond Buyer
  12. Elected by stockholders of a corporation to manage the entity. The ____ appoint the management of the corporation.
    Board of Directors
  13. State securities laws are referred to as "___." Purpose of these laws is to protect against fraudulent transactions with a particular state.
    Blue Sky Laws
  14. It is a daily publication which lists municipal bonds being offered by dealers. It contains information such as the name of the issuer, par value, interest rate, maturity date, price or yield, and the dealer offering the bond.
    Blue List
  15. Stock issued by a nationally known company which has a good reputation for quality in their management, products, and services. ____ are expected to pay dividends in good times and in bad times. They will generally maintain about a 50% Dividend Payout Ratio.
    Blue Chip Stock
  16. For inactively traded securities, a ____ indication may be placed in the Pink Sheets by a dealer. For example, a quotation for XYZ may be indicated as follows:
    BW - 14
    This means the dealer is indicating an interest to sell shares at $14, but is seeking a bid from another dealer.
    Bid Wanted
  17. Underwriters bidding on a new issue of municipal securities during a competitive underwriting submit this form and the interest rate proposed for the issue. The issuer normally grants the issue to the underwriting syndicate with the lowest net interest cost.
    Bid Form
  18. A statistical measure used to assess the volatility of a particular security to the market as a whole. Stocks with a ___of 1.0 are expected to fluctuate more than the general market, while those with a ___of less than 1.0 are expected to fluctuate less than the general market.
  19. The underwriting group acts as agent in attempting to distribute a new issue to the public.
    Best Efforts Underwriting
  20. An investor purchases a call with a higher strike price and sells a call
    with a lower strike price. Assume a customer puts on the following:

    Long 1 ABC July 60 call at 1
    Short 1 ABC July 50 call at 7
    Bearish Call Spread
  21. Represents 1/100 of one percent in terms of yield. Assume Bond A has a yield of 6.75% and Bond B has a yield of 6.50% The difference in the two yields is 25 ___  _____.
    Basis Point
  22. Assets = Liabilities + Stockholder's Equity
    Basic Balance Sheet Equation
  23. A money market instrument designed primarily to enable businessmen to finance foreign trade. It is a draft or bill exchange which becomes a money market instrument when payment is guaranteed by a bank. They are normally issued on a discount basis and mature within nine months.
    Banker's Acceptance
  24. Issued by an Options Clearing Corporation (OCC) approved bank. The Letter states that a particular customer has funds equal to the aggregate exercise of a put option which has been sold. The Bank agrees to deliver the funds to the broker/dealer if the option is exercised against the customer.
    Bank Guarantee Letter
  25. Refers to money flowing into and out of the U.S.
    Balance of Payments
  26. If a Balance of Payments deficit exists the deficit would increase due to the following:
    1. An increase in U.S. investments abroad. 2. U.S. loans to other countries. 3. U.S. tourists spending abroad. 4. A raising of interest and dividends owned by foreigners.
  27. A U.S. Balance of Payments deficit would improve or lessen with:
    1. New foreign investments in the U.S. 2. Commodity exports. 3. Spending by foreign tourists in the U.S. 4. Increase in interest and dividends earned on foreign investments.