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107 Cards in this Set
- Front
- Back
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Long (Buy) Call Desired Market Direction
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Bullish
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Long (Buy) Call Max Loss
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Premium Paid
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Long (Buy) Call Max Gain
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Unlimited
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Long (Buy) Call Breakeven
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Strike Price (XP) + Premium
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Short (Sell) Call Desired Market Direction
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Bearish
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Short (Sell) Call Max Loss
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Unlimited
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Short (Sell) Call Max Gain
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Premium Received
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Short (Sell) Call Breakeven
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Strike Price (XP) + Premium
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Long (Buy) Put Desired Market Direction
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Bearish
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Long (Buy) Put Max Loss
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Premium Paid
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Long (Buy) Put Max Gain
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Breakeven to Zero
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Long (Buy) Put Breakeven
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Strike Price (XP) - Premium
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Short (Sell) Put Desired Market Direction
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Bullish
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Short (Sell) Put Max Loss
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Breakeven to Zero
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Short (Sell) Put Max Gain
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Premium Received
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Short (Sell) Put Breakeven
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Strike Price ( XP ) - Premium
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Long Straddle Desired Market Direction
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Volatile
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Long Straddle Max Loss
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2 Premiums Paid
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Long Straddle Max Gain
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Unlimited (Long Call)
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Long Straddle Breakeven
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2 Breakeven Points
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Short Straddle Desired Market Direction
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Not Volatile
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Short Straddle Max Loss
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Unlimited (Short Call)
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Short Straddle Max Gain
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2 Premiums Received
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Short Straddle Breakeven
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2 Breakeven Points
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Debit Call Spread Desired Market Direction
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Bullish
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Debit Call Spread Max Loss
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Net Debit
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Debit Call Spread Max Gain
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Difference in XP - Net Debit
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Debit Call Spread Breakeven
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Lower Exercise Price + Net Debit
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Credit Call Spread Desired Market Direction
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Bearish
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Credit Call Spread Max Loss
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Difference in XPs - Net Credit
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Credit Call Spread Max Gain
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Net Credit
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Credit Call Spread Breakeven
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Lower Exercise Price + Net Credit
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Debit Put Spread Desired Market Direction
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Bearish
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Debit Put Spread Max Loss
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Net Debit
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Debit Put Spread Max Gain
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Difference in XPs - Net Debit
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Debit Put Spread Breakeven
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Higher Exercise Price - Net Debit
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Credit Put Spread Desired Market Direction
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Bullish
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Credit Put Spread Max Loss
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Difference in XPs - Net Credit
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Credit Put Spread Max Gain
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Net Credit
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Credit Put Spread Breakeven
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Higher Exercise Price - Net Credit
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Same Business Day |
Settlement Date on cash transactions for securities |
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1 business day |
Regular way settlement on US government securities. Option premium settlement with OCC |
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2 Business days |
The relationship of the normal ex-dividend date to the record date |
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3 business days |
Regular way settlement for corporate and municipal securities |
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5 business days |
Cash account purchases must be paid in full according to Regulations T |
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15 Calendar days |
The max length of time a customer may place options trades before a signed option agreement is required |
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20 calendar days |
The minimum time period between the filing days and the effective days of a security registration (cooling-off period) |
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30 calendar days |
The IRS time period restriction on purchases to avoid wash sale designation (30 days before and 30 days after) |
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60 calendar days |
The maximum period of time permitted to roll over qualified money from one qualified retirement plan to another |
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90 calendar days |
The max length of time for a letter of intent to be backdated. Cash account frozen for nonpayment |
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6 Months |
The frequency with which investments companies must send reports to shareholders. SEC rule #144 - resale of restricted or controlled stock |
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13 months |
The length of time of a letter of intent. |
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16 months |
The maximum time an investment company prospectus is valid |
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9 months |
SEC rule #147 - intra-state |
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Covered Call (Long stock, short call) BE on Stock |
Stock price - Premium |
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Covered Call (Long stock, short call) Max Loss (Risk) |
Stock Price - Premium |
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Covered Call (Long stock, short call) Max Gain |
XP - SP + Premium |
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Covered Call (Long stock, short call) Desired Market Direction |
Neutral to slightly bullish |
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Long Hedge (Long stock, long put) BE on Stock |
SP + Premium |
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Long Hedge (Long stock, long put) Max Loss (risk) |
SP - XP + Premium |
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Long Hedge (Long stock, long put) Max Gain |
Unlimited |
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Long Hedge (Long stock, long put) Desired Market Direction |
Bullish |
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Short Hedge (Short stock, long call) BE on Stock |
SP - Premium |
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Short Hedge (Short stock, long call) Max Loss ( Risk ) |
XP - SP + Premium |
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Short Hedge (Short stock, long call) Max Gain |
SP - Premium |
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Short Hedge (Short stock, long call) Desired Market Direction |
Bearish |
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Covered Put (Short stock, short put) BE on Stock |
SP + Premium |
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Covered Put ( Short stock, short put) Max Loss ( Risk ) |
Unlimited |
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Covered Put ( Short stock, short put) Max Gain |
SP - XP + Premium |
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Covered Put ( Short stock, short put) Desired Market Direction |
Neutral to slightly bearish |
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0.25% |
Maximum 12b-1 fee of fund described as no load. Max deferred sales charge of fund described as no load |
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1% |
Max 12b-1 fee Equals 100 basis points Rule 144 stock sale volume limit |
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5% |
Markup (markdown & commission) Policy Diversified Mutual Fund (per 1940 act) = no more than 5% of investment company's assets invested in any 1 company's stock |
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6% |
Penalty for excess IRA contributions |
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8 1/2 % |
Max sales charge on open-end managed investment company (mutual fund) |
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10% |
•IRA penalty for premature distribution (pre 59 1/2) •Shareholder owning 10% or more of outstanding shares is considered an affiliate or control person •Penalty for excess Keogh Contributions •max sales charge on public limited partnerships •max amount of outstanding voting stock of target company that a mutual fund can own |
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25% |
•Minimum maintenance for long stock position •Maximum compensation (taxable compensation, not counting contribution) that may be contributed to Keogh plan |
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30% |
Minimum Maintenance for short stock position |
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40% |
Minimum percentage of mutual fund board members that must be uninterested members |
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50% |
• required equity (regulation T) when buying or selling short stock in margin account • penalty for insufficient distribution from IRA (after age 70 1/2) • amount of non-required sale of stock proceeds that are credited to SMA in margin account • amount of stocks value in cash that must be deposited to withdraw stock from margin account |
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70% |
Amount of dividends received by a corporation excluded from tax |
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72% |
Minimum score to pass FINRA Series 7 exam |
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75% |
• minimum amount of investment company's assets that must be invested in securities of other issuers to be a diversified investment company • amount of limited partnerships assets that must be identified in advance to be a specified program (otherwise it is a blind pool) |
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90% |
• minimum of net investment income that must be distributed by calendar year end by a mutual fund under subchapter M • minimum amount of profits that must be distributed by calendar year ended by a real estate investment trust (REIT) |
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100% |
• required equity when buying options, new issues, and mutual fund shares • amount of profits and losses that flow through to investors from limited partnerships and other DPPs • amount of non required cash deposit credited to SMA in margin accounts |
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300% |
Amount of profit made or loss avoided that is maximum penalty under insider trading Act of 1988 |
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Current yield |
A new interest divided by current market price |
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Accrued interest |
From the last interest date (inclusive) up to but not including the settlement date (exclusive) |
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Corporate / municipal bonds |
30 days per month / 360 days per year |
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Government bonds |
Actual day / 365 days per year |
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Municipal bond rate equivalent |
Corporate rate × (100 % - tax bracket) |
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corporate bonds great equivalent |
Municipal rate ÷ (100 % - tax bracket) |
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Investor Objective: Preservation of capital; safety |
Government securities or Ginnie Maes |
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Investors Objective: Growth |
Common stock or common stock mutual funds |
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Investor Objective: Balanced or moderate growth |
Blue-chip stocks |
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Investor Objective: Aggressive growth/ Speculation |
Technology stocks or sector funds |
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Investor Objective: Income |
Bonds (but NOT zero - coupons ) |
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Investor Objective: Tax free income |
Municipal bonds or municipal bond funds |
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Investor Objective: High-yield income |
Corporate bonds or corporate bond funds |
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Investor Objective: Form an income oriented stock portfolio |
Preferred stock and utility stocks |
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Investor Objective: Liquidity |
Money market funds (DPPs, real estate and annuities are NOT considered liquid) |
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Investor Objective: Keep pace with inflation |
Stock portfolio |
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•Money supply •Building permits •Avg weekly in tial claims for state unemployment compensation •Avg work week in manufacturing •New orders for consumer goods •Machine tool orders •Changes in inventories of durable goods •Changes in sensitive material prices •Stock prices •Changes in business & consumer borrowing |
Leading Indicators |
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•Number of hours worked •Employment levels •Nonagricultural employment •Personal income •Industrial production •Manufacturing and trade sales •GDP |
Coincident Indicators |
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•Corporate profits •Avg duration of unemployment •Labor cost per unit of output (manufacturing) •Ratio of inventories to sales •Commercial and industrial loans outstanding •Ratio of consumer installment credit to personal income |
Lagging indicators |
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Fiscal Policy |
•Actions of Congress and the president •Government spending and taxation |
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Monetary Policy |
•Policy of the federal Reserve board (FRB) •Discount rate •Reserve requirement (most drastic) •Open market operations (Most frequently used) |
