Series 66 - S's pt 1

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  1. literature concerning mutual funds broadly defined as any communication used to induce the purchase of investment company shares. Statements may be oral or written.
    Sales Literature
  2. Established under the Securities Act of 1930, it consists of five persons appointed by the President. It administers all Federal Laws regulating the securities business except those relating to the extension of credit.
    SEC - Securities & Exchange Commission
  3. SEC
    Securities & Exchange Commission
  4. Requires physical segregation of customer fully paid and excess margin securities, as well as the maintenance of cash reserves. Also requires a broker/dealer to buy in a customer if the customer does not deliver a security, subject of a long sale, within 10 business days after the settlement date.
    SEC Rule 15c3-3 - Customer Protection Rule
  5. The redistribution of shares previously outstanding. Proceeds of the sale are received by the selling stockholders, not the issuing
    Secondary Distribution
  6. Exchanges and over-the-counter markets where securities are traded after their original issuance.
    Secondary Market
  7. Extended Federal regulation to all phases of trading in existing securities. Objective is to prevent unfair and inequitable practices and to bring trading on securities exchanges and in over-the-counter market under Federal control.
    Securities & Exchange Act of 1934
  8. Basic purpose to make certain the new securities offered to the public are fully and clearly described in the registration statement and prospectus.
    Securities Act of 1933
  9. This section provided for the regulation of over-the-counter market by national securities associations registered with the SEC.
    The Maloney Act (1938) amended the Act of 1934 by adding section 15A.

    Self-Regulatory Organizations
  10. Sale of securities the seller actually owns and can deliver.
    Sell Long
  11. Using an impending dividend or distribution to induce a customer to purchase mutual fund shares.
    Selling Dividends
  12. The day used in price and interest computations and the day delivery is due unless otherwise agreed by the parties. For "cash transactions", this is the trade date; for "regular way transactions", the third business day following the trade date; and for "when, as and if issued transactions", a date agreed by both parties.
    Settlement Date
  13. A person selling a security he does not own. If the price of the security declines, he can acquire the security and deliver it for a profit. If the price increases, the seller will lose.
    Short Selling
  14. A gain on a capital asset held 12 months or less.
    Short-term Capital Gain
  15. A non-profit membership corporation. Provides protection for customers of a SIPC member firm in liquidation up to $500,000 per customer, except that claims for cash are limited to $100,000 per separate customer.
    SIPC - Securities Investor Protection Corporation
  16. SIPC
    Securities Investor Protection Corporation
  17. An underwriter is stabilizing when he makes bids at or below the public offering price while offers are being made attempting to fix or peg the price of the security in the aftermarket to the public offering price of the new issue in the primary market.
  18. The investment banker agrees to purchase and distribute any part of an issue which is not sold in a Rights Offering.
    Standby Underwriting
  19. An order to buy or sell at a specified price which becomes a limit order when the stop price is reached.
    Stop Limit Order
Card Set
Series 66 - S's pt 1
Series 66 definitions
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