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33 Cards in this Set
- Front
- Back
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Secutity Act of 1933
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FRAC=
File with SEC Register with SEC Authotized by SEC Clear |
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I.P.O. and A.P.O. time/maturity for listed and unlisted firms
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IPO: listed = 25 days
unlisted = 90 days APO: unlisted = 40 days |
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Markets: 1st, 2nd, 3rd, 4th
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1st MKT: STK MKT to listed
2nd MKT: unlisted/OTC 3rd MKT: listed/OTC 4th MKT: Institutions |
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Tax Free at Federal Level
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MRSL70%
Municipal Bond Interest Roth IRA Stock Dividend Life Insurance 70% corporation dividend exclusion |
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Warrants
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No Dividends
No voting rights Have security if the company goes bankrupt companies create warrants up to 5 year time frame make stock more marketable |
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Pref. Stock: Participating
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In Excess earnings you have the chance to recieve extra dividends relating to performance
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Pref. Stock: Convertible
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A pref. stock has the ability to convert to shares of common stock
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ADR
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American Depository Receipts
After purchase stock at risk of foreign currency risk No preemptive rights Dividends in dollars Currency Risk |
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The % rate on a Bond
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SINC
Stated Interest Nominal Coupon |
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Secured Coporate Debt
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MEC
Mortgage Equipment Collateral |
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Unsecured Debt
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Debenture: backed by general credit of the corporation
Subordinated Debenture: Generally offer higher yield than debentures, usually have conversion factors. Guaranteed: Backed by another company other than the issuer Income Bond: Used when a company i reorganizing and coming out of bankruptcy. |
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Liquidation Order
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1.wages 2.Taxes 3.Secured Bonds 4.Debentures 5.General Creditors 6.Subordinated Debentures 7. Preferred STK 8.Common Stock
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Parity Price
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MKT Price/ Conversion ratio
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Issuer Risk Level
(highest to lowest) |
1.corporations 2.Municipals 3.Gov't Agencies 4.US gov't
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Accrued interest on a bond confirmation is:
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Added to the buyers and sellers contract
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Eurodollar Bonds
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Interest is paid annually, they are issued in bearer form and they are not subject to US withholding taxes.
In dollars |
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STRIPS
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Seperate Trading of Registered Interest and Principal of Securities:
Backed in full by US gov't Zero coupon bond by Designating certain treasury issues as suitable for stripping into interest and principal components |
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TIPS
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Treasury Inflation Protection Securities
Offer Inflation Protection Offer Safety of Principal b/c they are back by the US gov't |
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GNMA
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Gov't National Mortgage Assc.
(Ginnie Maes) - only agency security backed by the full faith and credit of the US gov't 25,000 minimums monthly interest and principal PMTs taxed at all levels |
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FNMA
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Federal National Mortgage Assc.
Corporation back that provides mortgage capital Securities backed by FNMA's general credit trade on the NYSE (Not backed by the full faith of the govt) |
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Sallie Mae
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Student Loan Marketing assc. issues discount notes and S-T floating rate notes
6 month maturities Taxable at federal level and exempt in most states |
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T- Bill
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Maturities: 4,13,26,52 weeks
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T-Notes
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2-10 yr maturity
pay semi annual interest |
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T-bond
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10-30 yr maturity
pay semi annual interest |
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Money Market
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Short term Debt
270 day Max maturity |
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Discount Rate, Fed Funds rate, Broker call loan, Prime
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Discount: FRB to Bank
Fed Funds: Bank to Bank Broker call: B/D - Reg T to Customer Prime: Bank to Corp. |
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Highest Rates to Lowest Rates
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Prime rate, call loan rate, discount rate, fed funds rate
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Treasury Receipts
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A zero coupon Bond formed from treasury notes and bonds
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CMO: Collatoralized Mortgage Obligation
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Corporate Instruments, Not backed by government
Interest paiad is taxable at all levels Backed by mortgage Pools YLD higher than treasury securities and they trade OTC Considered relatively safe |
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par value
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arbitrary value
dollar amount assigned to a share of stock by its issuer |
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Book Value
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Liquidation value of each share of common stock
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REITS
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Not a limited partnership
Pass through income NO losses must distribute 90% of income to avoid taxation as a corporation Trades OTC and on Exchanges |
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call premium
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difference between the call price and par
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