Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
25 Cards in this Set
- Front
- Back
|
Series Bonds
|
Have different issue dates, but the same maturity. Usually used for projects performed in various stages
|
|
|
Hedge A Short Stock Position
|
Long Calls (Buy Calls)
|
|
|
Serial Bonds
|
Issued all at once but have different maturities. May Have Balloon maturities where a large amount issued mature at the end. Interest costs to issue go down over time
|
|
|
Funded Debt
|
Corporate debt due no more than one year from the issue date. Includes corporate bonds, notes, and bank loans
|
|
|
Registered Bonds
|
Registered in investor's name:
-All bonds currently issued like this -Interest paid directly to investor -Principal sent directly to investor at maturity |
|
|
Bearer Bonds
|
Whom ever possess' the bonds has entitlement to interest and principal. Bonds no longer issued this way
|
|
|
Current Yield on a Bond
|
= Annual Interest / Current Market Price of the Bond
|
|
|
Amount of Accrued Interest
|
=(Principal*Coupon*Time) / 360
|
|
|
Parity Price Calculation
|
Step 1. Par Value / Conversion Price
-Par = $100 for preferred stock - Par = $1000 for bonds Step 2. Market price of bond or pfd stock/Shares produced = parity price |
|
|
Debit Spread
|
Applies to: Bull Call Spreads and Bear Put Spreads
- Maximum loss potential is the net debit in premiums - Maximum profit potential is the difference in strike prices less the net debit - Debit spreads must widen by more than the net debit to be profitable |
|
|
Credit Spread
|
Applies to: Bear Call Spreads and Bull Put Spreads
- Maximum profit potential is the net credit in the premiums - Maximum loss potential is the difference in the two strike prices less the net credit in the premiums - Credit Spreads must narrow or expire to be profitable |
|
|
Maintenance requirement for the short sale of low priced stocks
|
WILL NEVER BE LESS THAN $2000
If stock price is 0-5 = $2.50 share or 100%Market Value whichever is greater 5-17 = $5.00 per share 17+ = Reg T currently 50% |
|
|
Long Margin Account Equity
|
Current Market Value - Debit Balance = Equity
|
|
|
Short Margin Account Equity
|
Credit Balance - Current Market Value of the Short = Equity
(Credit balance is equal to the purchase price of the securities + Reg T amount ) |
|
|
Mixed Margin Equity
|
Market Value Long - Debit Balance +Credit Balance - Short Market Value = Equity
|
|
|
Offering Price
|
NAV + Sales Load
|
|
|
NAV
|
AKA The Bid
|
|
|
Discount Ask Price (Offering Price)
|
NAV / (100% - Sales Load%)
|
|
|
Sales Load %
|
(Offering Price - NAV) / Offering Price
|
|
|
Revenue Pledge on a Bond
|
OB DRS 1.Operations and maintenance 2. Bond Service account for principal and interest 3. Debt service or sinking fund
4. Reserve Maintenance Fund (irregular maintenance) 5. Surplus Fund |
|
|
Corporate Equivalent Yield
|
Municipal yield / (100% - Investors Tax Rate)
|
|
|
Allocation procedures for municipal bonds
|
Pretty Girls Demand More
1. Pre-Sale Orders 2. Group accounts (Syndicate members) 3. Designated Orders 4. Member's orders at the takedown |
|
|
SL/BS CHART
BL/SS CHART |
SL/BS Done above current market price and mean Sell Limit / Buy Stop
------------------------MARKET BL/SS Done below current market price and mean Buy Limit / Sell Stop |
|
|
Brokerage Operations Order of Actions
|
WPMC RADIO
1. Wire Room 2. Purchase and Sales 3. Margin Check 4. Cashier |
|
|
FED ------BANKS-------PUBLIC
|
1. Fed Buys Securities
a. Stimulate Economy b. More funds available c. Lower Interest Rates 2. Fed Selling Securities a. Take money out of economy b. Less funds for loans c. Higher Interest Rates |
