Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/65

Click to flip

65 Cards in this Set

  • Front
  • Back
Account
The bookkeeping record fo a client's transactions at a brokerage firm. included in this record are all outstanding securities positions, debits owed the firm, and credits owed the customer.

The books kept by an underwriting syndicate that keep track of indications of interest in the offering, securities sold, and monies received from syndicate members and transmitted to the issuer.
Account Executive
Another name for a registered representative of a broker/dealer, sometimes informally called a stockbroker
Accounts Payable
A current liability of a corporation including the amounts due others within a period of one year where such liability generally resulted from the purchase or manufacture of inventory.
Account Statement
The formal name for the statement sent to a broker/dealer's customers on a periodic basis disclosing teh status of the customer's account. statements must be sent at least quarterly if there are any positions in the account.
Accredited Investor
For private placements, Regulation D defines a category of investors to which the offering may be sold without limit to teh number of persons. there is a 35-person limit for nonaccredited investors. a broad definition of an accredited investor woulde be a person of considerable wealth or an institution.
Accrued Interest
1. the amount of interest due the seller from teh buyer upon settlement of a bond trade.

2. prorated interest due a bondholder since the last payment date.
Accumulation Unit
A share of a variable annuity fund. the term is used during the accumulation phase of an annuity. see annuity unit.
Acid Test Ratio
for a corporation, the quick assets on the balance sheet divided by current liabilities on the balance sheet. this formula is used to determine whether or not a company can meet financial emergencies since the quick assets are items that can be turned into cash quickly.
ACQ
An abbreviation used on the Consolidated Tape to indicate that the transaction was an exchange acquisition (a type of block trade)
Acting Jointly or in Concert
1. A term used by all the exchanges trading options in defining certain position and exercise limits. no person (or group of people "acting jointly or in concert") may exceed those limits set by regulation.

2. The SEC also prohibits any manipulative actions, including person acting jointly or in concert to secretly accumulate a control position in a public company.
Active Market
A marketplace or a particular security that trades frequently with substantial volume. in addition, the difference between the bid and ask of a security (the spread) should be reasonably narrow and the changes in prices should be in small increments rather than large moves either up or down.
Adjusted Debit Balance
The net money borrowed by a customer as a result of both long (purchases) and short (short sales) positions and considering both debits (money the customer owes the firm) and credits (cash in the account).
Adjustment Bond
A type of bond which pays interest only "when, as and if earned". these bonds trade "flat" (without accrued interest). See income Bond, Accrued Interest
Administrator
1. Official or acency administering the securities laws of a state.

2. A person appointed by the court to handle the estate of a deceased person.
Ad-Valorem Tax
Tax based on the value (or assessed value) of real property (real estate).
Account
The bookkeeping record fo a client's transactions at a brokerage firm. included in this record are all outstanding securities positions, debits owed the firm, and credits owed the customer.

The books kept by an underwriting syndicate that keep track of indications of interest in the offering, securities sold, and monies received from syndicate members and transmitted to the issuer.
Account Executive
Another name for a registered representative of a broker/dealer, sometimes informally called a stockbroker
Accounts Payable
A current liability of a corporation including the amounts due others within a period of one year where such liability generally resulted from the purchase or manufacture of inventory.
Account Statement
The formal name for the statement sent to a broker/dealer's customers on a periodic basis disclosing teh status of the customer's account. statements must be sent at least quarterly if there are any positions in the account.
Accredited Investor
For private placements, Regulation D defines a category of investors to which the offering may be sold without limit to teh number of persons. there is a 35-person limit for nonaccredited investors. a broad definition of an accredited investor woulde be a person of considerable wealth or an institution.
Accrued Interest
1. the amount of interest due the seller from teh buyer upon settlement of a bond trade.

2. prorated interest due a bondholder since the last payment date.
Accumulation Unit
A share of a variable annuity fund. the term is used during the accumulation phase of an annuity. see annuity unit.
Acid Test Ratio
for a corporation, the quick assets on the balance sheet divided by current liabilities on the balance sheet. this formula is used to determine whether or not a company can meet financial emergencies since the quick assets are items that can be turned into cash quickly.
ACQ
An abbreviation used on the Consolidated Tape to indicate that the transaction was an exchange acquisition (a type of block trade)
Acting Jointly or in Concert
1. A term used by all the exchanges trading options in defining certain position and exercise limits. no person (or group of people "acting jointly or in concert") may exceed those limits set by regulation.

2. The SEC also prohibits any manipulative actions, including person acting jointly or in concert to secretly accumulate a control position in a public company.
Active Market
A marketplace or a particular security that trades frequently with substantial volume. in addition, the difference between the bid and ask of a security (the spread) should be reasonably narrow and the changes in prices should be in small increments rather than large moves either up or down.
Adjusted Debit Balance
The net money borrowed by a customer as a result of both long (purchases) and short (short sales) positions and considering both debits (money the customer owes the firm) and credits (cash in the account).
Adjustment Bond
A type of bond which pays interest only "when, as and if earned". these bonds trade "flat" (without accrued interest). See income Bond, Accrued Interest
Administrator
1. Official or acency administering the securities laws of a state.

2. A person appointed by the court to handle the estate of a deceased person.
Ad-Valorem Tax
Tax based on the value (or assessed value) of real property (real estate).
Advance/Decline Theory
1. A market theory that uses the relative number of price advances versus price declines in relation to total issues traded to make buying and/or selling decisions.

2. the advance/decline figures are called the "breadth of the market".
Advance Refunding
When a bond issuer has outstanding bonds and interest rates come down, it would sometimes be to the advantage of the issuer to issue new bonds with a lower interest rate and use the monies thus received to retire the outstanding bonds. if this is done before a call date or maturity date, the funds will be held(usually invested in U.S. Government Securities) until such time as teh old bonds can be eliminated. this is also called pre-refunding.
Advertisement
Any material used in a public medium such as radio, television, newspapers, magazines, or movies.
Affidavit of Domicile
A legal document provided by the administrator or executor of an estate, which verifies the residency of a deceased person. when a securities customer dies, this document (along with the state tax waiver) is necessary to facilitate the transfer of securities out of the deceased's name and into the name of the estate since it shows that no tax liens are outstanding.
Aftermarket
The secondary market, which develops for a security either over the counter or on an exchange after the securities have been issued through a public offering. see free-riding and withholding, Hot Issue, Stabilization.
Agency
1. A debt security issued by a corporation sponsored by the U.S. Government such as GNMA's, TVA's, FNMA's.

2. A trade done for a customer where the firm acts as a broker (an agency transaction).
Agent
1. A person who handles the public's orders to buy and sell securities, for which service he/she charges a commission. the definition does not include a bank.

2. Any NASD member firm or registered representative which in the regular course of conducting securities business buys and sells securities on behalf of others, charging a commission.
Age of Majority
the age when a person is no longer a minor and may legally sign a binding contract. this age varies with state and can be 18,21, or any other age the state determines. a minor may not open a brokerage account; a custodian or trustee could open an account for the benefit of the minor.
Aggregate Exercise Price (AEP)
1. the amount of the exercise price of an option times the 100-share contract.

2. the total cost to the stock buyer upon the exercise of an option (the call holder or the put writer).

3. the total proceeds to the stock seller upon the exercise of an option (the call writer or the put holder.)
Agreement Among Underwriters
After an investment broker is chosen y an issuer, if other underwriters will assist in marketing teh issue, they sign an agreement, which outlines the details of the offering and their part in it. this agreement sets forth the manner in which monies will be transferred, the portion of the underwriting that each underwriter is responsibile for, and the compensation to be paid to each.
Allied Member
1. in an NYSE member broker partnership, a general partner who does not own a seat on teh New York Stock Exchange.

2. In an NYSE member broker corporation, a voting stockholder empolyee of the firm who does not own a seat on the New York Stock Exchange, and who either owns 5% or more of the firms's voting stock, or serves as a director on its board.
All-or-None Order (AON)
An order entered when a customer intends to buy or sell an amount of stock for more than one round lot at a set price. all shares must be executed at one time. it may take the entire day (or longer if a good-till-cancelled order), or it may never be executed.
All or None Underwriting
A best efforts underwriting in which no sales are final unless and until the entire issue is sold. if the entire issue is not sold, the offering may be cancelled or postponed. the underwriters are acting as agents rather than principals.
Alternative Order (Either/Or)
an order that involves the entry of a limit order and a stop order. for example: the market is at 50; the customer enters an order to buy at 49 (limit) or 51 stop
American Depository Receipt (ADR)
A contract which shows that a specific number of shares of a certain foreign corporation have been deposited with a foreign branch of an American bank. these receipts are issued by an American bank in this country and are bough and sold as though they were stock certificates. the ADR's purpose is primarily to facilitate transfer or ownership. The american bank in this country is the transfer agent.
AMEX
an acronym for the American Stock Exchange, Inc. Another shorthand term used is ASE
Amortization
1. A reduction in value of an asset.

2. A reduction of a liability over a period of years.

3. Special periodic payments which pay off a debt (such as through a sinking fund)

4. the yearly amount applied toward a loss (such as adjusting the tax cost basis on a municipal bond purchased at a premium).

5. the write down gradually to extinguishment the cost (of an asset) by periodic charges to expenses (or profit and loss).
And Interest
A bond transaction in which the buyer pays the seller the market price plus interest accrued since the last interest payment date.
Annual Report
A formal statement issued yearly by corporations that shows assets, liabilities, equity, revenues, expenses and so forth. it is a reflection of the corporation's condition at the close of the business year and teh operating results for that year. all public corporations are required by law to distribute this report to their shareholders.
Annuitant
the recipient of annuity payments from an annuity.
Annuitize
the action taken when an annuitant selects his/her settlement (payout) option and no longer contributes to an annuity. he/she stops putting money in and starts taking money out.
Annuity
an amount paid yearly (or at other regular intervals).
Annuity Unit
a term used to describe accumulation units of a variable annuity once distribution (payout) has begun.
Arbitrage
The simultaneous purchase and sale of a security to take advantage of a price discrepancy (such as when securities are traded on more than one exchange - dually traded securities).
Asked Price
1. the offering side of a quote

2. the price, including the sales load, at which a fund will offer shares for sale.

3. the quoted price (plus commission or markup) an investor pays to purchase a security.
Assessed Valuation
The value placed on property for purposes of taxation. this value may be more or less than the estimated market price.
Assessments
1. Additional amounts of capital that may be required from the participants of a direct participation plan in the future. these assessments may be mandatory or voluntary.

2. the tax liability on a piece of property, such as a special assessment tax for a local sewer district.
Assets
1. Balance sheet entries showing items of value owned by a business or claims against others that may be used to cover liabilities.

2. Something of value.

3. the securities (or cash) in a customer's margin account which stand as collateral for money (or securities) the customer has borrowed from the broker/dealer.
At the Close Order
A market order entered by a customer to be executed at the close of the market that day.
At the Market
a type of order to buy or sell at the best price obtainable when the order reaches teh floor. speed of execution is the most important consideration.
At the Money
When the exercise (strike) price of an option is equal to the current market price of the stock.
At the Opening Order
a market order entered by a customer to be executed at teh opening of the market (as the initial transaction in that security the next day)
Auction Marketplace
a term used to describe an organized exchange where transactions are completed (executed) in the open and anyone present may join in. prices are determined by open outcry when buyers and sellers meet on the floor of the exchange.
Authorized shares
The total amount of stock authorized for issuance by a corporation. this limit is set by the corporate charter.
Average
A stock market indicator based on the total market values of selected stocks divided by either the number of stock dividends or other variables.