Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
22 Cards in this Set
- Front
- Back
|
Class of options |
Same security Same type of option |
|
|
Variable annuity |
Regulated under securities act of 1940 Must be sold with prospectus |
|
|
Custodian accounts |
Cannot be margin No short sales |
|
|
IRA contributions not deductible when |
High income earner Already covered by another retirement plan |
|
|
Syndicate members helping other members sell |
Earn selling concession |
|
|
Keogh distributions start |
No later then April 1st the year after the individual turns 70 1/2 |
|
|
Retirement plans don’t buy |
Tax exempt muni bonds |
|
|
Straddles |
Expect market volatility |
|
|
Annuity risks for purchaser |
Investment Legislative Interest rate |
|
|
Annuity risks for the issuer |
Mortality Expense |
|
|
Paperwork required for trading to commence in the account of a deceased person |
Executors authorization certificate Copy of death certificate Affidavit of domicile |
|
|
Margin department |
Maintains records Generate statements Compute equity Send margin calls |
|
|
Purchase and sales department |
Process and reconcile executed orders |
|
|
Margin vs cash account |
Same price volatility Margin has more leverage |
|
|
Firm suspects exploitation of elderly |
15 day freeze on suspicious distributions |
|
|
Coverdell funds not used for education |
Taxable with 10% penalty |
|
|
Reg T extension request |
4th day after trade date |
|
|
529 contribution limit |
Dollar limit at state level only |
|
|
Rollover deceased persons IRA |
Spouses only |
|
|
Defined contribution plan |
Fixed contribution Benefit varies based on years in plan ERISA requirements |
|
|
Regulation SP |
Notification of privacy policies and practices |
|
|
Coverdell contributions |
2000 limit Not deductible |
