Capitalization - ANSWER shares outstanding X price per share, The total amount of the
various securities issued by a corporation including bonds, debentures, preferred stock,
common stock, and surplus, which represent the sources of long-term financing of the com-
pany
SMA - ANSWER Like a credit card - a line of credit
purchase power is 2X SMA
Stopped Stock - ANSWER Specialist guaranteed a certain
price to a floor
Stopped trading - ANSWER no trades until restated
buy stop - ANSWER accelerates Bull Market
Buy Stop - ANSWER elected when it reaches the stop price - then fills at market - below
or above price
used to protect against a loss and to lock in a gain when used with a short stock position.
sell stop - ANSWER accelerates Bear Market
403 B Plan - ANSWER Only non profit employees
no investment in stocks in plan
1
,sell stop - ANSWER elected at a price that is X or below
order is triggered and then it becomes a market order to be sold at x or higher
used to protect against a loss and to lock in a gain when used with a long stock position.
Serial Bond - ANSWER characterized by decreased interest
mutual fund Yield - ANSWER dividend / offer price
options: even stock split - ANSWER nbr contract up and premium / strike price reduced
options: odd stock split - ANSWER nor of contract remain the same and strike price and
premium reduced
co-terminus - ANSWER all debt is overlapping (100 %)
nyse - ANSWER all industrial, transportation, utility and fin. stocks
wilshire 5000 - ANSWER comprised of 6, 000 stocks on the nyse, mex and nasdaq
dow jones average - ANSWER 30 component stocks
IPO - ANSWER no margin, no short sell, no relations of B/D
options - ANSWER not marginable, always result in capital gain or losses
to protect - ANSWER buy a put
2
, for income - ANSWER write covered call
ALPHA - ANSWER violality measure - changes within company 1 - no change, 1.5 - up
50%, .75 - down 25% / violability measurement based on past vol.
WKSI - ANSWER well know seasoned issues.
patriot ACT - ANSWER suspicious Activity report (SAR) for under 10,000 deposit or
CTR Currency Transacion Report for deposits exceeding 10,000
1933 - ANSWER New Issues
penny stock rule 15c 2-6 - ANSWER designated securities- nonlisted, non Nasdaq and less
than $5.00 or yes if Investor with firm more than one year and made 3 unsolicited purchases
Reg D - ANSWER only 35 investor can be non accredited
accredited investor unlimited
1. 1 million exc. home/auto
2. 200,00 income % expected 200,000
3. purchaser 150,000
Reg A - ANSWER $5 million limitation, 5 M per year, unlimited investors, 30% of stock can
be pre-owned.
Reg NMS - ANSWER all min 100 shares up to 10,000
all mkt maker & special to process any size order
seller must report in 30 seconds
3
various securities issued by a corporation including bonds, debentures, preferred stock,
common stock, and surplus, which represent the sources of long-term financing of the com-
pany
SMA - ANSWER Like a credit card - a line of credit
purchase power is 2X SMA
Stopped Stock - ANSWER Specialist guaranteed a certain
price to a floor
Stopped trading - ANSWER no trades until restated
buy stop - ANSWER accelerates Bull Market
Buy Stop - ANSWER elected when it reaches the stop price - then fills at market - below
or above price
used to protect against a loss and to lock in a gain when used with a short stock position.
sell stop - ANSWER accelerates Bear Market
403 B Plan - ANSWER Only non profit employees
no investment in stocks in plan
1
,sell stop - ANSWER elected at a price that is X or below
order is triggered and then it becomes a market order to be sold at x or higher
used to protect against a loss and to lock in a gain when used with a long stock position.
Serial Bond - ANSWER characterized by decreased interest
mutual fund Yield - ANSWER dividend / offer price
options: even stock split - ANSWER nbr contract up and premium / strike price reduced
options: odd stock split - ANSWER nor of contract remain the same and strike price and
premium reduced
co-terminus - ANSWER all debt is overlapping (100 %)
nyse - ANSWER all industrial, transportation, utility and fin. stocks
wilshire 5000 - ANSWER comprised of 6, 000 stocks on the nyse, mex and nasdaq
dow jones average - ANSWER 30 component stocks
IPO - ANSWER no margin, no short sell, no relations of B/D
options - ANSWER not marginable, always result in capital gain or losses
to protect - ANSWER buy a put
2
, for income - ANSWER write covered call
ALPHA - ANSWER violality measure - changes within company 1 - no change, 1.5 - up
50%, .75 - down 25% / violability measurement based on past vol.
WKSI - ANSWER well know seasoned issues.
patriot ACT - ANSWER suspicious Activity report (SAR) for under 10,000 deposit or
CTR Currency Transacion Report for deposits exceeding 10,000
1933 - ANSWER New Issues
penny stock rule 15c 2-6 - ANSWER designated securities- nonlisted, non Nasdaq and less
than $5.00 or yes if Investor with firm more than one year and made 3 unsolicited purchases
Reg D - ANSWER only 35 investor can be non accredited
accredited investor unlimited
1. 1 million exc. home/auto
2. 200,00 income % expected 200,000
3. purchaser 150,000
Reg A - ANSWER $5 million limitation, 5 M per year, unlimited investors, 30% of stock can
be pre-owned.
Reg NMS - ANSWER all min 100 shares up to 10,000
all mkt maker & special to process any size order
seller must report in 30 seconds
3
