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55 Cards in this Set
- Front
- Back
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Must be submitted within 30 days of termination from the firm
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Form U5
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Who can reinstate a CRD that has a statutory disqualification?
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The SEC
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Two parts of Continuing Education:
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1) Firm Element
2) Regulatory Element |
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Continuing Education program to be updated every year
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Firm Element
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Continuing Education program to be updated after the first 2 years, and then every 3 years following
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Regulatory Element
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How often does Firm Element need to be updated?
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Every year
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How often does Regulatory Element need to be updated?
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After the first two years, and then every 3 years following
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Max gift for a member of an exchange?
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$50 every year
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Max gift for a member of a broker, dealer, or institution
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$100 every year
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Are Price Guarantees illegal or legal?
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Illegal
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How must you gain consent for profit sharing agreements?
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Written consent only
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How should payout work for profit-sharing agreements?
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Payout must be related to contribution
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When can profit-sharing agreements be changed?
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Never
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How long should Business establishment records be kept on file?
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A lifetime
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How long should transaction records be kept?
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3 years in an easily accessible place
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How long should transaction records be accessible?
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6 years
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In the auction market, what are bids?
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Buyers
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In the auction market, what are offers?
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Sellers
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Trades the account of others
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Broker
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Trading own account through the broker
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Dealer
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Three things about Open End investment
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o issues more shares
o based on net value of shares o sell back to fund Closed-end investment |
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Three things about Closed End investment
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o Fixed # of shares
o Market pricing / supply & demand pricing o Open Market |
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What is the SRO?
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Self Regulatory Organization
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Can the SRO send someone to jail?
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No
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When was the SRO established?
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Securities act of 1934
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How is FINRA funded?
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Member Funded - No Funding From SEC
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What is the OCC?
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Options Clearing Corp
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What does the OCC do?
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Becomes the buyer for every seller and the seller for every buyer
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What is the DTCC?
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Depository Trust Clearing Corp
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What does the DTCC do?
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Clears equities / bonds
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Makes transactions as dealer-specialist on exchange
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Market Maker
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Inform public of dividend intent
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Declaration Date
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Record shareholders who will be paid
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Record Date
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Date by which the stock must be purchased in order to
receive a dividend |
Ex-Dividend date
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A corporate action in which a company's existing shares are divided into multiple shares.
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Stock split
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A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share.
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Reverse stock split
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Stock that entitles the holder to a fixed dividend, whose payment takes priority over that of common-stock dividends
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Preferred stock
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Open ended funds tradable over an exchange just like a stock.
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Exchange traded funds
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An index designed to reflect the movement of the entire market
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Broad based index
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Responsibilities of the American Depository Reciepts
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converting dividend & distributing
convert right offerings distribute information non non-us developments |
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What is Regulation M?
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Unlawful to bid/offer during a restricted period
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the main factor that determines prices of derivative securities, warrants and convertibles.
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Underlying price
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The price at which a specific derivative contract can be exercised.
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Strike price
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A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves)
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Dividend
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A specified time, after which the options contract is no longer valid.
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Expiration time
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A statistical measure of the dispersion of returns for a given security or market index.
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Volatility
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Change in option premium
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Delta
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Change in delta
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Gamma
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Time based change
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Theta
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Volatility based change
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Vega
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1 cent above strike price of underlying security
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In-the-money
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at least 1 cent below strike price
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Out-the-money
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How many unit lots do Japanese Yen trade in?
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1,000,000
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How many unit lots do all currencies trade in?
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10,000 or 100,000
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In regards to shorts, what must happen before order entry?
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locate must be documented and approved
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