Series 66

Matched orders

A form of market manipulation where two or more persons buy and sell the same security with no beneficial change in ownership. The effect is to cause an appearance of market activity and price movement that is not market driven.

Hypothecation agreement

A loan from a bank to the BD with the client's securities used as collateral for the BD's loan is called what?

Credit/margin agreement

A loan from the BD to the client with the client's securities used as collateral is called what?

IA

A person charging a fee for investment advice.

IAR

A person eligible to engage in selling securities advice to the public. Fee based.

Agent

A person who can execute transactions. They effect trades. They work for a commission.

Term Insurance

A temporary insurance which is only good for a set period of time.

Variable Universal Life Insurance

A type of permanent life insurance that has an investment component which allows the policyholder to allocate a portion of the premium paid into an investment fund of stocks, bonds, mutual funds and other types of investments.

State

Advisers who manage client assets that total less than $100 million are required to register with who?

State or SEC

Advisors who manage between $100 and $110 million are required to register with who?

SEC

Advisors who manage client assets of at least $110 million or advise registered investment companies are required to register with who?

Variable Life Insurance

Allows the holder to allocate a portion of the premium paid into an investment fund of stocks, bonds, mutual funds, and other types of investments.

Universal Life Insurance

Allows the holder, at certain times stated in the policy, to adjust the amount of premium and the amount of the death benefit.

Broker-Dealer

Any person in the business of making trades in its own account or for the accounts of others. Only makes money through transactions not recommendations.

Notice filing

Federal covered securities registered under the Investment Company Act of 1940 file their offerings with state securities Administrators. What is it called?

Registration by qualification

Issues registered solely within one state (intrastate offering).

Permanent Life Insurance

Lifetime insurance assuming premiums are paid in full as they come due.

Investment Company Act of 1940

Requires an investment company engaged in interstate commerce to register with the SEC.

Registration by coordination

Simultaneous registration on both the federal and state level

Accredited investors

Term used to describe financial institutions, wealthy persons meeting specific requirements, and (for a particular issue) persons involved in the management of the issuer.

Monte Carlo simulation.

The statistical method used to determine the return profile of a security or portfolio that recreates potential outcomes by generating random values based on the risk and return characteristics of the securities themselves is known as what?

Fundamental analysis

These people study the overall economy, industry conditions, and the financial condition and management of particular companies.

Technical analysis

These people try to predict the market by examining price and volume trends. They expect the market to act in the future as it has in the past.