Wiley Series 62 Exam Review 2014 + Test Bank

Wiley Series 62 Exam Review prepares candidates for the Corporate Limited Representative Examination, which qualifies a representative to manage the sale of public offerings and corporate stocks. The book addresses characteristics of securities and investments, corporate securities markets, securities and investments evaluation, and securities industry regulation. Candidates will gain access to an online test bank for each chapter and thorough preparation for the FINRA exam. INDICE: ABOUT THE SERIES 62 EXAM XV ABOUT THIS BOOK XIX ABOUT THE TEST BANK XXI ABOUT THE SECURITIES INSTITUTE OF AMERICA XXIII CHAPTER 1 EQUITY SECURITIES 1 What Is a Security? 1 Equity = Stock 2 Common Stock 2 Corporate Timeline 2 Values of Common Stock 4 Rights of Common Stockholders 5 Why Do People Buy Common Stock? 11 What Are the Risks of Owning Common Stock? 12 How Does Someone Become a Stockholder? 12 Preferred Stock 14 Dividend Distribution 18 Warrants 20 American Depositary Receipts (ADRs)/American Depositary Shares (ADSs) 22 Real Estate Investment Trusts (REITs) 22 Exchange–Traded Funds (ETFs) 23 Pretest 25 CHAPTER 2 DEBT SECURITIES 31 Corporate Bonds 31 Types of Bond Issuance 32 Bond Certificate 33 Bond Pricing 33 Bond Yields 35 Bond Maturities 38 Types of Corporate Bonds 39 Zero Coupon Bonds 41 Guaranteed Bonds 41 Convertible Bonds 41 The Trust Indenture Act of 1939 44 Bond Indenture 44 Ratings Considerations 44 Retiring Corporate Bonds 45 Collateralized Mortgage Obligation (CMO) 47 Exchange Traded Notes (ETNs) 49 Other Asset Backed Securities 50 Pretest 51 CHAPTER 3 GOVERNMENT SECURITIES 55 Series EE Bonds 55 Series HH Bonds 56 Treasury Bills, Notes, and Bonds 56 Treasury Notes 57 Treasury Bonds 57 Treasury Bond and Note Pricing 57 Treasury Strips 58 Treasury Receipts 58 Treasury Infl ation Protected Securities (TIPS) 58 Agency Issues 59 Pretest 61 CHAPTER 4 THE MONEY MARKET 63 Money Market Instruments 63 Corporate Money Market Instruments 63 Government Money Market Instruments 65 Municipal Money Market Instruments 66 International Money Market Instruments 66 Interest Rates 66 Pretest 69 CHAPTER 5 ECONOMIC FUNDAMENTALS 71 Gross Domestic Product 71 Economic Indicators 73 Economic Policy 75 Tools of the Federal Reserve Board 75 Fiscal Policy 78 International Monetary Considerations 80 Pretest 81 CHAPTER 6 ISSUING CORPORATE SECURITIES 85 The Securities Act of 1933 85 The Prospectus 86 The Final Prospectus 86 SEC Disclaimer 87 Misrepresentations 87 Tombstone Ads 88 Freeriding and Withholding/FINRA Rule 5130 88 Underwriting Corporate Securities 89 Exempt Securities 93 Exempt Transactions 94 Rule 415 Shelf Registration 98 Securities Off ering Reform Rules 98 SEC Rule 405 98 Pretest 101 CHAPTER 7 TRADING SECURITIES 105 Types of Orders 105 The Exchanges 108 Priority of Exchange Orders 109 The Role of the Specialist/DMM 109 Crossing Stock 112 Do Not Reduce (DNR) 112 Adjustments for Stock Splits 113 Stopping Stock 114 Commission House Broker 114 Two Dollar Broker 114 Registered Traders 115 Super Display Book/SDBK 115 Short Sales 115 Threshold Securities 118 Block Trades 120 Trading Along 120 Circuit Breakers 121 Listing Requirements for the NYSE 122 Reading the Consolidated Tape 123 Exchange Qualifiers 124 The Nasdaq Market 125 The Alternative Display Facility (ADF) 131 Trade Reporting and Comparison Service (TRACS) 131 Electronic Communication Networks (ECNs) 132 Unlisted Trading Privileges 132 Market Centers 132 SEC Regulation NMS 134 SEC Regulation ATS 134 Nasdaq International 135 NonNasdaq OTC BB 135 Pink Sheets 136 Third Market 136 Fourth Market 137 Market Maker Regulations and Responsibilities 137 Times for Entering a Quote 138 The Opening Cross 138 Order Imbalances 138 The Nasdaq Official Opening Price (NOOP) 139 The Closing Cross 139 The Nasdaq Halt Cross 140 Withdrawing Quotes 140 Handling and Displaying Customer Limit Orders 141 The Manning Rule 144 The Order Audit Trail System (OATS) 144 Automated Confi rmation System/ACT Market Center Trade Reporting Facility 145 ACT/TRF Trade Scan 146 Avoiding Double Reporting 148 Market Making During Syndication 152 Trade Reporting and Compliance Engine (TRACE) 156 Broker vs. Dealer 158 FINRA 5% Markup Policy 158 Markups/Markdowns When Acting as a Principal 159 Riskless Principal Transactions 160 Net Transactions with Customers/FINRA Rule 2124 160 Proceeds Transactions 161 Firm Quote Rule 161 CTrade Complaints Between Members 162 Arbitrage 162 Pretest 165 CHAPTER 8 CUSTOMER ACCOUNTS 169 Opening a Customer Account 169 Holding Securities 171 Mailing Instructions 172 Types of Accounts 172 Death of a Customer 174 Partnership Accounts 174 Corporate Accounts 174 Trading Authorization 175 Accounts for Employees of Other Broker Dealers 180 Numbered Accounts 180 Day Trading Accounts 180 Account Transfer 181 Option Accounts 182 Margin Accounts 182 Commingling Customer’s Pledged Securities 183 Wrap Accounts 183 Regulation S–P 184 Pretest 185 CHAPTER 9 MARGIN ACCOUNTS 191 Regulation of Credit 191 Establishing a Long Position in a Margin Account 194 Establishing a Short Position in a Margin Account 200 Combined Margin Accounts 205 Margin Requirements for Day Trading 206 Portfolio Margin Accounts 206 Pretest 209 CHAPTER 10 RETIREMENT PLANS 213 Individual Plans 213 Individual Retirement Accounts (IRAS) 214 Keogh Plans (HR–10) 218 Tax Sheltered Annuities (TSAS)/Tax Deferred Accounts (TDAS) 219 Employee Retirement Income Security Act of 1974 (ERISA) 224 Pretest 227 CHAPTER 11 BROKERAGE OFFICE PROCEDURE 231 Executing an Order 231 Clearly Erroneous Reports 233 Execution Errors 233 Corporate and Municipal Securities Settlement Options 234 When Issued Securities 235 Government Securities Settlement Options 235 Accrued Interest 236 Rules for Good Delivery 238 Delivery of Round Lots 239 Delivery of Bond Certificates 240 Rejection of Delivery 240 Don’t Know Procedures (DK) 240 Fail to Deliver/Fail to Receive 241 Due Bills 241 Customer Account Statements 241 Carrying of Customer Accounts 242 Proxies 242 Pretest 245 CHAPTER 12 FUNDAMENTAL AND TECHNICAL ANALYSIS 251 Fundamental Analysis 249 Changes in the Balance Sheet 252 Technical Analysis 258 Efficient Market Theory 262 Capitalization weighted index 263 Price weighted index 263 Pretest 265 CHAPTER 13 CUSTOMER RECOMMENDATIONS, PROFESSIONAL CONDUCT, AND TAXATION 269 Professional Conduct in the Securities Industry 268 Fair Dealings with Customers 268 Recommendations to an Institutional Customer 272 Recommending Exchange Traded Funds (ETFs) 272 Information Obtained from an Issuer 273 Disclosure of Client Information 273 Borrowing and Lending Money 273 Gift Rule 274 Outside Employment 274 Private Securities Transactions 274 Customer Complaints 275 Investor Information 275 Know Your Customer 275 Investment Objectives 276 Risk vs. Reward 278 Tax Structure 281 Investment Taxation 281 Calculating Gains and Losses 281 Taxation of Interest income 284 Inherited Securities 284 Donating Securities to Charity 285 Estate Taxes 285 Withholding Tax 285 Corporate Dividend Exclusion 286 Alternative Minimum Tax (AMT) 286 Taxes on Foreign Securities 286 Pretest 287 CHAPTER 14 SECURITIES INDUSTRY RULES AND REGULATIONS 293 The Securities Exchange Act of 1934 293 The National Association of Securities Dealers (NASD) 295 Registration of Agents/Associated Persons 297 Securities Investor Protection Corporation Act of 1970 (SIPC) 309 The Securities Acts Amendments of 1975 310 The Insider Trading and Securities Fraud Enforcement Act of 1988 311 The Telephone Consumer Protection Act of 1991 312 The Penny Stock Cold Call Rule 312 The Role of the Principal 313 Currency Transactions 316 The Patriot Act 316 The Uniform Securities Act (USA) 318 Sarbanes–Oxley Act 318 SEC Regulation S–K 320 SEC Regulation M–A 320 FINRA Rule 5150 Fairness Opinion 322 SEC Regulation S–X 323 Regulation FD Fair Disclosure 323 Pretest 325 ANSWER KEYS 331 GLOSSARY OF EXAM TERMS 343 INDEX 409

• ISBN: 978-1-118-71953-4
• Editorial: John Wiley & Sons
• Encuadernacion: Rústica
• Páginas: 450
• Fecha Publicación: 22/01/2014
• Nº Volúmenes: 1
• Idioma: Inglés