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30 Cards in this Set
- Front
- Back
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Reluctant to take risk |
Risk adverse income after taxes |
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Income left after taxes |
Disposable income |
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Income, after taxes, personal necessities, and debts |
Discretionary income |
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Three main suitability obligations for firms and representatives |
Finra rule 2111 |
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Must determine that a series of recommended transactions is suitable, not excessive, or unsuitable, when combined |
Quantitative suitability |
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Prevent loss of an investments, total return |
Capital preservation |
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Income head is exempt from federal taxation |
Tax exempt income |
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Current income from a conservative profile |
Current income |
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Offer safety and income |
GNMA bond fund |
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Growth overtime greater than cost basis |
Capital appreciation |
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What is an equity fund that has the potential for capital appreciation |
Value fund |
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Capital. Appreciation by investing in companies they know. |
Blue Chip funds |
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Taken for a potentially higher overall return |
Aggressive growth |
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For investors want to take a higher risk and invest in a specific market segment |
Sector fund |
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Capital appreciation and consistent income, also known as a hybrid account |
Growth and income |
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A client that is looking to retire in a year does not necessarily need the funds in a year. Therefore, you should look at the clients. |
Overall lifeline |
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Additional risk with above average returns |
Speculation |
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What does the acronym used for systematic risk? |
Prime |
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What does AMT stand for? |
Alternative minimum tax |
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The office, where broker dealers, execute trades, approves, new accounts, approval of retail communications, and completes review of customer orders |
Office of supervisory jurisdiction (OSJ) |
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Location where a broker dealer of facts or attempt to affect security transactions |
Branch office |
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Customer name, home or business street address, customers, date of birth, customers, Social Security number, signature of principle, and signed W9 or W8 |
Required customer information |
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Selling and one account when you own in another |
Shorting against the box |
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Financial status, tax status, investment objectives, experience, marital status, occupation, and employer |
Requested customer information |
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What is a registered representative do if they don’t why are all the requested information |
Can you still open the account but can’t make any recommendations |
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Yes, broker dealer in registered representative the ability to verify identity of a client |
Customer identification program (CIP) |
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Written policies and procedures, that address the protection of customer, information and records |
Regulation S-P |
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Regulation S-P has to be given to all customers on an |
Annual basis |
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______ receives initial privacy notice |
Consumer |
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_______ receives annual privacy notice |
Customer |
