Series 66 - P's

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  1. refers to investment companies, variable annuities, and real estate investment trusts, where an investor's risk is reduced through diversification. ____ ____ offer investors professional management, periodic statements, tax information and  diversification of financial risk. ____ ____are attractive to investors who do not want to select and manage their own portfolio.
    Packaged Securities
  2. An illegal practice where an investor enters buy and sell orders in the same security with the sole purpose of creating an appearance of
    activity will drive the price of the security upward.
      Painting the Tape
  3. The price of a stock must sell for to be exactly equal to the market price of the bond if a bondholder converted.
    Parity Price
  4. provisions in a DPP protect the rights of limited partners.
    Partnership Democracy provisions
  5. Income or loss from conduct of trade or business in which the taxpayer does not materially participate.
    Passive Income or loss
  6. This SEC Rule applies to non-NASDAQ OTC securities selling at less than $5 per share. Mutual funds are exempt from this Rule.
    Penny Stock Anti-Fraud Rule
  7. Person
    • An individual
    • a corporation
    • partnership
    • association
    • joint stock company
    • trust
    • unincorporated organization
    • government or political subdivision of a government
  8. Quotations of Low Priced and/or inactively traded over-the-counter securities. These are subject prices at which securities might possibly be bought or sold between the dealers.
    Pink Sheets
  9. Income from securities and other non-business investments, such as dividends, interest, option premiums, income from a royalty or annuity among other income.
    Portfolio Income AKA Investment Income AKA Unearned Income
  10. ___ stock is an equity security.
    Preferred Stock
  11. The price at which options are bought and sold. The ___ is determined competitively in the marketplace.
  12. A transaction used by struggling companies to acquire additional capital. This type of transaction is exempt and can not exceed 10 subscribers.
    Preorganization Subscription
  13. A corporation retires a present bond issue before its maturity date by issuing new securities. Cash proceeds of the new issue are used to pay off the old issue.
  14. The interest charged on loans made by commercial banks to their best customers (firms with good credit ratings).
    Prime Rate
  15. Every person directly or indirectly the beneficial owner of more than 10% of any class of equity security, other than exempt securities, registered on a national securities exchange. They are classified as "insiders".
    Principal Stockholders
  16. An investment banker sells securities directly to one or a few large investors. Investment banker acts as a middle man, bringing the buyer and seller together. A transaction which results from an offer to no more than 10 people in the state during any 12 month period. This type of transaction is exempt from registration.
    Private Placement
  17. The tax system under which those with higher income pay a higher percentage than those with lower incomes.
    Progressive Tax
  18. A written agreement which regulates a loan for a specified sum of money to be paid upon demand or at a fixed date in the future.
    Promissory Note
  19. Summarizes the information contained in the registration statement. Must contain all of the material facts in the registration statement, but in shorter form. The purpose is to analyze the investment merits of the security.
  20. Extends the right to vote to stockholders who do not attend stockholders' meetings. A power of attorney which is granted by the stockholder authorizing another person to vote his stock.
  21. A bond that permits the holder to redeem it at specified intervals before maturity and receive full face value.
    Put Bond
  22. Types of Preferred Stock
    • prior preferred
    • cumulative preferred
    • participating preferred
    • callable preferred
    • convertible preferred.
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Series 66 - P's
2014-02-26 05:27:16
Series 66

Series 66 definitions and terms
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