Term
| What are the four elements of an investment contract? |
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Definition
| 1) Investment of mone; 2) in common enterprise; 3) with expectation of profits; and, 4) management by a third party. |
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Term
| What are excluded federal securities? |
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Definition
1. Issued by non-profit orgs;
2. Muni bonds offered only intrastate;
3. Intrastate offerings
4. Security issued with a guarantee from another entity of principal, interest OR dividends -- OR dividends - beware of them throwing in AND instead of OR.
***But these securities may still require you to register in the state. |
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Term
| Offer to Buy/Sell - do you have to register? |
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Definition
1. It originates in the state;
2. It is directed to that state;
3. it is accepted in that state.
All three of these equal an offer. |
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Term
| What are some Federal covered securities? |
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Definition
1. Listed or Authorized to be listed on a national exchange;
2. Pooled investment fund shares (mutual funds);
3. Securities sold to Qualified Purchasers;
4. Government securities
4. Muni bonds if offered outside the state of issue (interstate);
5. Securities unregistered/Private Placements like Reg D. |
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Term
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Definition
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Term
| According to USA, which of the following are specifically excluded from the definition of a Broker-Dealer? IA and IARs; Lawyers; Issuers; Accountants; or all of them? |
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Definition
| Answer is Issuers. Issuers are the only ones specifically excluded. |
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Term
| What is the definition of sale or sell? |
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Definition
| Any contract of sale or contrace to sell for value (as opposed to a bona fide gift) |
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Term
| What does solicitation mean? |
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Definition
| Any oral, written or other communication used to offer or sell investment company shares EXCLUDING any proxy statement, shareholder reports, or other disculosures under 1933. These are not considered to be solicitations. These are tricks. |
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Term
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Definition
| Any state, terroritory of the USA including PR and DC. |
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Term
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Definition
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Term
| What are institutional investors? |
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Definition
| Banks; insurance companies; employee benefit plans; anyone the administrator defines as such. |
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Term
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Definition
| Can only be calculated for postive numbers |
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Term
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Definition
| Difference between highest and lowest numbers |
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Term
| What is FinCEN - what department is it? |
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Definition
| Financial Crimes Enforcement Network, part of the US Treasury Dept. |
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Term
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Definition
| Fixed life; commodities; endowment policies; collectables; metals; real estate. Trick: oil and gas futures no (but if oil and gas certificate, it would be). |
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Term
| What investment products are excluded from the definition of securities under USA? |
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Definition
| Fixed life; endowment policies; fixed annuities; collectibles; commodity futures; real estate; precious metals. Firms or persons don't have to register if they are giving advice about products that are NOT securities. |
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Term
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Definition
| Form CRS for BDs, Form ADV-3 for IAs. Description of services, fees and costs, history and link to SEC education website. Deliver to new and existing customers. Before or at the time. If any material becomes inaccurate - 30 days to amend - then existing customers within 90 days. |
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Term
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Definition
| Halfway point of a series of numbers |
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Term
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Definition
| Has narrow or small spreads between bid and ask. |
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Term
| What is an investment advisor? |
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Definition
| I give you advice directly or through writing relating to selling or buying securitites, including those who "promulgate" reports and I am getting compensated for it. Remember ABC - Advice - Business (it's the core of your business)) - C - receive compensation. |
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Term
| What is a key to remember what a purported gift is v. assessable stock? |
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Definition
| If there are strings attached to the receiver - it's assessable. Purported means it appears to be a gift but isn't. |
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Term
| If you are selling only muni bonds do you have to register? |
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Definition
| If you give any advice, any advice whatsoever, about something that is a SECURITY, you have to be registered as an IA or IAR. Even if the security is on the exemption list - if it is a security, you have to regsiter. |
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Term
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Definition
| Large cap segment of 3000 |
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Term
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Definition
| lend money to developers and pass interest onto sahreholders. |
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Term
| Quick reminder: Explain Mode, Media, and Mean |
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Definition
| Mean is average; mode is most frequent number; median is the middle number. Like a median strip!! |
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Term
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Definition
| Measures portfolio against benchmark. Expressed in 0% to 100% or 0 to 1. |
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Term
| What is the median for the following: 3, 4, 9, 11, 13, 14? |
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Definition
| Median is 10 because 9 and 11 are in the middle - you have to figure out 10 because there are not an odd number set |
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Term
| Would you have to register as an agent if you are selling fixed annuities? |
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Definition
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Term
| If a radio signal is directed to state A, but the signal is heard in state B, is the offer also considered to be an offer in state B? |
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Definition
| No, not an offer; however, could be considered a solicitation. |
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Term
| What if published in a state but more than 2/3 circulation is outside. |
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Definition
| Not an offer: if over 2/3 of the circulation is outside the state, no, not an offer. Remember this over 2/3 rule as a trick. |
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Term
| What if a newspaper is published in State A and sold in State B, would offers be triggered in State B? |
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Definition
| Not an offer: if the newspaper is not published in the state but is sold in that state, it is not considered an offer. It would have to be published in the state. |
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Term
| What does guarantee mean according USA. |
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Definition
| Principal interest OR dividends. The key is OR dividends. The question that says AND dividends is WRONG. (guarantee is usually issued by someone other than the company). |
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Term
| What is the correclation coefficient? (R-Value) |
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Definition
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Term
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Definition
| Small cap segment of Russell 3000 |
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Term
| What are some securities as listed by USA? |
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Definition
| Subscription rights; futures contracts; stocks; bonds; collateral trust certs; certificates of deposit; investment contracts; pre org certs; options; variable life annuities. Voting trust certs. REITS. Certificates of interest in oil and gas. |
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Term
| If a portfolio with a 0.64 R-Squared value rises 10%, what does that mean as relates to the benchmark? |
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Definition
| That 65$ of that 10% rise can be attributed to the rise of the benchmark index. |
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Term
| An R-Value of -1 means what? |
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Definition
| That there is a "perfect negative correlation" to the benchmark. A +1 would be a "perfect positive" correlation to the benchmark and the fund would match the performance of the benchmark. |
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Term
| What is a viatical policy? |
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Definition
| The investor, who purchased the policy, not the policyholder, will now pay the premiums going forward. The investor is now the policy owner and the beneficiary of the policy. The insured remains unchanged. |
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Term
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Definition
| The number that most frequently occurs. There can be more than one mode. If no number repeats, there is no mode. |
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Term
| What does an R-Value of 0 mean? |
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Definition
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Term
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Definition
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