Note 5 - series 66 PDF

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Summary

series 66...

Description

quarterly - If IA has custody under NASAA, account statements must be sent to clients at least _____

R squared - statistical measure of how close the data are to the fitted regression line. measures specific portfolio compared to market as a whole.

Realized return - amount of profit/loss as a result of a sale of security. considers go cost, sale price, interest, and dividends but NOT paper or unrealized gains or losses

Refund Annuity - if income pmts of annuitant do not = premium paid, balance of account is paid to a bene in either payments or lump sum

registration statement or advertising material - An exemption means that the issuer does not have to file a _____ ______ or ____ ____ with the state.

Retail Communication - Any written communication distributed or made available to 25 or more retail investors in a 30 day period. *principal approval required.

Rights of Accumulation (ROA) - for investment co's, permits reduced sales charge on new purchases when the total value of already-held shares plus the additional amount to be invested exceeds the sales charge breakpoint

Risk free rate of return - rate of return on a 3-month treasury bill

riskier - Bonds with a higher credit spread would be (riskier, less risky)

Rule of 72 - gives estimates of how long it will take for an investor to double their money given a specific rate of return on an investment 72 / int rate = # of years to double your investment

Russell 3000 Index - comprises 3000 US stocks as measured by market capitalization

S & P Bond ratings - Investment Grade : AAA - BBB Speculative Grade: BB - DD *adds plus or minus sign for relative standing

S&P 500 Index - an indicator of overall stock market performance based on the average stock prices of 500 top U.S. companies, compiled by Standard & Poor's

Sales Load / Load - fee charged to a customer who buys shares of some mutual funds and normally pays the fee "up-front" at time of purchase

Scaling In - securities purchased in increments to attain an average purchase price as the value declines

schedule h - Clients must receive a written statement containing __________ of form ADV when a wrap fee is charged

SEC Release IA-1092 - expanded definition of IA. Includes giving advice with regard to securities or hold themselves out as offering such services, like financial planners, pension consultants, other types of advisers

Securities Act of 1933 - -paper act, prospectus act -regulates new issues, requires registration of securities -full & fair disclosure -gets securities into the hands of the public

Securities Exchange Act of 1934 - -people act -regulates all people involved -secondary market

sell stop - A __ ___ is used to protect a profit on a long stock position.

Semi-Strong EMH - the assertion that stock prices already reflect all publicly available information

Sharpe Ratio - measure of the risk adjusted return relative to a portfolio's volatility. how well the return of an asset will compensate for risk taken. (return of the portfolio - risk free return) / std deviation

simple will - outright distribution of one person's assets to beneficiaries named in the will

Single Life / Life Annuity - annuitants receive regular income payments until they die. no benes

Soft Dollar Arrangements - An investment manager directs the commission generated by a transaction towards a third party or in-house party in exchange for services that are for the benefit of the client but are not client directed (research reports, software applications)

Solicitation - any oral, written, or other communication used to offer or sell investment company shares excluding any proxy statement, report to shareholders, or other disclosure documents relating to a security covered under '33

solicitor - a person who: 1. attempts to sell advisory services for an IA or 2. refers clients to an IA for a fee

speculative capital structure - Large % Bonds outstanding Small % common outstanding

State - What level are investment advisor representatives registered at only?

State = investment adviser ; federal covered = IAR - When an IAR begins/terminates employment, prompt notification of Admin is required. For IA's registered with the state, the ____ is responsible. For federal covered advisers, the _____ is responsible

Stop Order - - MEMOrandum order from a customer that becomes a Market order if a trade takes place at or through the price stated - will Protect a Profit or Limit Losses on an Existing Position

Strategic Asset Allocation - assets in a portfolio over the long term are balanced and generally kept at an assigned balance. Maintained to achieve the highest anticipated return v risk.

Strong EMH - all info, public or private, is reflected in market prices

Structured Products - Securities based on or derived from a basket of securities, an index, or other securities, commodities, or currencies -typically two components: a note and a derivative

Surety Bond - a bond that ensures that the registrants have sufficient funds to cover losses to customers resulting from theft or other dishonesty for which they are legally viable. -requires formal proof of loss to support a claim under this bond

Suspicious Activity Report (SAR) - A report that must be filed within 30 days whenever a firm suspects that transactions of $5000 or more may be related to illegal activities

systematic risks - market, interest rate, and inflation risks

Tactical Asset Allocation - Targeted balances with adjustments and are made within a range based on current market and economic conditions. Form of market timing -type of active asset allocation

tax deferred - On both a fixed or variable annuity, the earnings are __________ until annuitization unless the holder makes early withdrawals.

tax loss carried forward, reduction of corporate income tax rates, retirement of outstanding bonds - EPS may be increased by

Technical Analysis - focuses on market trends, charts, market patterns. moving averages, advances and declines, odd lot purchases, changes in p/e ratio

Term Insurance - -death benefit only -no cash values -level or decreasing death benefit -best for young people on a tight budget

testamentary / traditional will - establishes a trust used to transfer an estate to the beneficiaries

the agent AND the bd - Who is responsible for notifying the Admin when an agent is terminated?

the current website and past revisions - Websites are considered to be advertising and IAs and BDs must keep a record of:

their life expectancy - What would the time horizon be for a retiring individual's retirement investments?

Through mutual funds, ETFs and green bonds - How are ESGs available to retail investors?

Time value of money - the value of money today is greater than the value of that same amount of money in the future. due to inflation or potential appreciation/income from investing that dollar

Time-Weighted Return - inflow and outflow of money are eliminated. Compares a portfolio manager's performance against a benchmark...