how many days to send customer confirmation after BD sells bonds in a secondary mkt transaction?
given or sent at or before completion of the transaction
T+1 vs. T+2
t+1: government securities and optionsT+2: equities, corporate bonds, muni bonds
CTR threshold
10000
Reg D
accredited investors1) officers and directors of the issuer 2) institutions with at least 5mm in assets3) individuals with either: a) $1mm net work (excl home) or b) 200k recent 2 years income (300 for married couple)
Rule 144a
QIBs (institution managing at least 100mm discretionary assets)
Muni pricing
1 point = $10, use eights (3/8 = 3.75)
U-5
firm must submit to FINRA within 30 days, provide copy to departing rep within 30 days, keep file updated for 2 years
tax on premature traditional IRA withdrawal
10% (+ tax...?)
economic indicators
leading: housing startslagging: interest ratescoincident: GDP, inventory/sales, personal income, consumer spending, industrial production
time to send confirmation after selling bonds in secondary market
given or sent at or before completion of the transaction
subaccounts
mutual funds, ETFs (not corporate bonds, treasury securities)
sequence for order period
presale orders, group orders, designated orders, member orders
IRA contribution limit
lesser of 6,000 or 100% of earned income if over 50 then 7,000spousal: can contribute up to 6k/year
time to file 10-k
file with SEC within 90 days of year end
order of dividend process
1) declaration date 2) ex-dividend date 3) record date 4) payment date
current yield
#NAME?
call price
#NAME?
treasury security tax
taxed at federal level, not at state or local
muni security offering
official statement - primary disclosure document
Agency security taxing
taxable at all levels (federal, state, local)
commercial paper max maturity
270 days (also issued at a discount)
MF shareholder reports timing
semiannual
MF summary prospectus timing
prior to or at the time of sale (investment objectives, fee structure, etc)
muni bond funds taxing
dividends: tax-free; capital gains: taxable (good for high net worth individuals)
REIT criteria & tax
criteria - meet all three: 1) at least 75% of assets invested in RE2) at least 75% of income derived from RE3) 90% of gains passed through tax - not subject to corporate tax (only pass through gains, which are taxed as ordinary income)
DPP taxation
no corporate taxes (pass through gains AND losses)passive loss can only offset passive gains
covered call
long stock + short call breakeven = purchase price of stock - premium
Institutional threshold
$50mm in assets
total return (on equity)
(dividends + capital gains) / initial purchase price
preliminary prospectus timing
cooling-off period
SEC effectiveness
effective but not 'approved'
prospectus delivery timing (IPO)
must be delivered for the first 25 days after the IPO
Rule 147
must be held by instate residents for 6 months
tender offer threshold
5% of shares directly from shareholders
restricted persons
(can't invest in IPO) BDs, portfolio managers for own personal accounts, employees of BDs, immediate family members
stabilization
at or below the POP
Reg T grace period (T+2)
2 days (pay by T+4)
recession
2+ consecutive quarters
defensive v cyclical stocks
cyclical: auto, techdefensive: utility, healthcare
Fed tools
OMOs, discount rate, reserve and mgn requirementsease money supply: lower discount rate, buy govt securities, lower reserve req
order of interest rates
(high to low) 1) prime rate 2) broker's call rate 3) discount rate 4) federal funds rate
telemarketing hours
8am - 9pm local time
do not call exceptions
existing customer of the firm, personal relationship with RR, prior written consent
free riding timing
free-riding --> frozen account for 90 days (only transactions that are paid upfront)
short sale requirements
(Reg T) margin account with 50% of sale price deposited; 30% maintenance margin
marginable securities
determined by Fed; exchange-listed stocks, CEFs, ETFs, fixed income securities, LEAPS with more than 9 months until maturation not marginable: options w <9 months to expiration, MFs, annuities contracts
discretionary account approval
approved by principal prior to first trade; each trade approved by principal promptly after execution
customer account statement timing
quarterly
holding customer mail
up to 3 months, request in writing
Reg S-P notices timing
at account opening and annually thereafter clients gien 30 days to opt out of info sharing
SIPC coverage
securities (500k total) and cash (max 250k); not commodities or futures
vulnerable investors hold period
15 business days, if belief of ongoing malfeasance can extend 10 business days
IRA excess contribution penalty
6% tax (by the IRS)
IRA rollover timeline
60 days before tax & early withdrawal penalties
Roth qualification
income limit: 139k (inflation adjusted) distributions at 59.5 years, be in the plan for at least 5 years
RMD failure penalty
by April 1st following turning 72
SEP-IRA contributor
(small businesses) only employer contributes
Simple IRA firm size
100 employees or less
Coverdell restrictions
(contributions taxed) $2,000 per year per child, opened for a student under 18, withdrawn by 30
ABLE restrictions
diagnosed by age 26, contributions taxed, distributions federally tax-free
arbitration clause exception
harassment or discrimination - arbitration only if firm and employee agree
SIE validity
4 years
amended U-4 timeline
within 30 days
statutory disqualification
felony or securities misdemeanor within 10 years; can't be employed by BD without FINRA waiver
regulatory element
within 120 days of second anniversary of registration, every 3 years after (2, 5, 8, 11)
firm element
annually, all covered persons
investment adviser registration
large adviser (>100mm in aum) register w SEC, smaller advisers register with state
BD record timeline
maintain for 3 years, clock restarts for every ad deployed
insider trading penalty
civil penalty: treble damagescriminal penalties: 5mm fine, 20 years in prison
treasury dept bureaus
IRS, OCC, FinCen
selling away
no comp: notify firmcompensation: firm permission
sharing in customer accounts
with firm and customer permission, proportionate to contribution
lending to client exceptions
firm must have written procedures, thenno notice if client is bank or family memberpermission if based on outside business or personal relationship or client is registered at same firm
political contributions
250 per election for a candidate you can vote for violation: no business w muni for 2 years spousal contributions ok unless directed by the MFP
retail communication
>25 retail investors within 30 calendar days -- require principal approval before first use permitted: 1) hypothetical illustration of mathematical principals, 2) price target - only in research report
personal email & social media
permission from supervisor before
muni bond reporting
report to RTRS within 15 min of execution
mutual fund report timing
semiannual