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Related Flashcards
Related Topics
Cards In This Set
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MARKET ORDER
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An order to
buy or sell a stated amount of a security at the most advantageous
price obtainable immediately after the order is entered.
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OFFER
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The price at which a person is ready to sell, as opposed to the bid, which is the price at which one is ready to buy.
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FINRA
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The
Financial Industry Regulatory Authority was created in 2007 through the
consolidation of the NASD and NYSE regulatory units. This
self-regulatory organization is the primary regulator for all U.S.
broker-dealers.
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DEALER
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A firm that
buys and sells securities for its own account rather than as an agent.
The dealer's profit or loss is the difference between the price it pays
and the price it receives for the same security. The dealer's
confirmation must disclose to customers that the dealer has acted as
principal. A firm may function, at different times, either as a broker
or dealer, but may not act as both in the same transaction.
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NEW ISSUE
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New issues include all initial public offerings (IPOs) of equity securities that are sold under a registration statement or offering circular.
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EFFECTIVE DATE
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The day on which the SEC first permits a new issue to be sold to investors.
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PUT
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An option
in which the holder has the right to sell a fixed amount of the
underlying security at a stated price within a specified period.
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CREDIT SPREAD
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An option spread position in which the premium of the option sold is greater than the premium of the option purchased.
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PREMIUM
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(1) A bond trading in the market above its par value. (2) The amount a bond's current price exceeds its par value. (3) The amount a bond's redemption price exceeds its par value. Known as the call premium. (4) The market price of an option contract set by supply and demand.
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SECURITY
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SECURITY (S7)Any document such as stocks, bonds, or notes. A fixed insurance or endowment policy, credit union shares, or fixed annuities are not considered securities. |
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CORPORTAION
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A legal, taxable entity chartered by a state or the federal government and owned by its shareholders.
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MUNICIPAL BOND
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A bond
issued by a state or a political subdivision, such as county, city,
town or village or by state agencies and authorities. In general,
interest paid on municipal bonds is exempt from federal income taxes
and state and local income taxes within the state of issue.
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DEBT
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A legal
obligation to pay. The written agreement promising to pay is known as a
debt instrument. Examples include bonds, notes, bills, mortgages, etc.
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TAXABLE EQUIVALENT YIELD
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An adjustment made to a tax-free yield for comparison to taxable yields.
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STOCK DIVIDEND
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A
dividend paid in securities rather than cash. The dividend may be
additional shares of the issuing company, or in shares of another
company (usually a subsidiary) held by the company.
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