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40 Cards in this Set

  • Front
  • Back
The process of how securities are issued to the public is know as.
Every trade of stocks and bonds that is not a purchase of a new issue is a trade that takes place in the secondary market. The market places for secondary trading are the _______ and the _____ ______ markets.
over-the-counter markets
The Federal Act of 1933 assures disclosure and prevents fraud in the sale of new issues. What Act gives protection in the secondary market?
The Securities Exchange Act of 1934 (this act created the SEC and outlines the powers of the SEC)
The two terms used to describe a securities firm that discribes their role in any given transaction.
When a securities firm is acting on behalf of others as their agent for which they earn a commission they are taking the roll of a ___________.
When a securities firm act for iis self as a principal for which they charge a Mark-up they are acting as a _________.
A private association of brokers who's main purpose is to provide a central meeting place for its member-brokers.
A Stock exchange
The stock exchange operates in an Auction type of trading. the Auction is conducted by an individual employed by a member firm know as a ____________.
What are the two national stock exchanges.
New York Stock Exchange (NYSE)

American Stock Exchange(AMEX)
Any exchange that is not a National exchange is considered a ___________ exchange.
Stocks that are traded on an exchange are referred to as _______ stocks. This makes them eligible for trading on the floor of the exchange.
The ______ _________ deal in securities of companies which have applied and qualified for trading on them, making the _____ securities.
Stock exchanges

The ______ ____ _______ market handles all other securities transactions that do not take place on the floor of an exchange.
List the five types of securities traded over- the-counter.
1) Gov. bonds
2) Muni bonds
3) Mutual funds
4) New ussues (primary distr)
5) Variable annuities
A firm who is willing to trade their stock is know as a.
Money Maker
When a securities firm is acting in the dealer roll the are creating money by buying and sell securities at a mark-up. When a dealer purchases and holds a security it is said that they have a _______ and an ____________

T/F Trading on the exchanges is regulated by the exchanges boards while the OTC market is regulated by the NASD.
In the 1960s, if you wanted to find out who was the market maker in the particular security or stock you would brightly colored stack of papers called the ______ ______s.
Pink Sheets
The association of Securities Dealers Automated Quotation System is know as the.
Investors can get virtually the same detailed trading informat- ion about National Market list- ings as on the NYSE through the ____________ system.
The NASDAQ has 3 levels of services. Level 1 provides services to a rep's desk top and provides price info only on the Highest bid and the lowest offer know as the ________ __________.
Inside Market
A quotation that is not firm. The Prices quoted are subject to confirmation. These quotes are found in the NASDAQ level ___.
NASDAQ Level 1
the Nasdaq level where a large TV screen is provided where market makers are listed along with their firm bid and ask. Firm quotes can be made at this level.
Nasdaq level 2
The Nasdaq level used my market makers is the level ___ where not only can they see bids and asks it allows them to enter their info and report their trades.
Nasdaq level 3
When an exchange-listed stock occurs OTC it is considered to be a trade made in the ________ _________ market.
Nasdaq intermarket
Companies like Apple Computer,Starbucks, and Microsoft are part of the ______
__________ _______ ________.
Nasdaq National Market Listing
(NNM Securities)
When private transactions are made directly between large institutional investors, such as banks, mutual funds, and insurance companies without the use of securities firms is trading in the ______ market.
Fourth Market
Transactions made in the fourth market are reported on a system called ________.
T/F A securities firm can act as a broker and a dealer if it wants to.
It can never act as both a dealer and a broker.
A securities firm maintaining an inventory in a particual security would be acting as a.
The Uniform Practice Code of the NASD has determined that all transaction between members will settle the __________ way.
Regular Way
U.S. Government securities are considered regular way also but this is where delivery is.
The next business day
Regular way delivery is made at the office of the purchaser on, but not before, the ___ business
day on securities that are not U.S. gov.
3rd Business day
When a trade is made "for cash,"
delivery is made when?
Same day as the trade
The day that a Board of Directors publicly declares the dividend is the __________ date.
The day on and after which the buyer of a security is not entitled to a previously declared dividend. Usually the 2nd business day prior to the record date.
Ex-Dividend date
In the case of mutual funds the Ex-dividend date is determined by the __________ or _________ ___________.
issuer or principal underwriter.
The day the corporation makes a list of stockholders of record.
Record Date
The actual day that a payment of the dividend or other distribution is made.
Payment Date
Please arrange the following dates into the correct order:
payment date; ex-dividend date;
declaration date; record date.
1)Declaration Date
2)Ex-dividend Date
3)Record Date
4)Payment Date