Series 66
One of your customers notices that the short interest on Kepko common stock is high when she asks you for your interpretation you should tell her that this signals
A bullish outlook
Real estate investing can be passive or active an example of passive real estate investment would be
A real estate Limited partnership
The dividend discount model is based
An analytical tool used to project the future price of a common stock using projected dividends
Dividend growth model
Assumes growth of dividends gives higher stock price used with large cap stock
Diversification professional management liquidity low minimum initial investment
Benefits of investment company securities a K a mutual funds
Structured notes
Built to meet specific needs lower borrowing to increase potential returns sophisticated investors only the risks are liquidity returns not realize to maturity they appeal to the buy and hold and short term traits
ETF
Can be traded on exchanges or NASDAQ intra-day price fluctuations can't be bought on margin and sold short typically tracks and index low expense more tax efficient than mutual fun
Open end company
Continue with public offering redeemable shares always need prospectus issues common stock only extremely liquid priced minimum of one time per day at 4 PM forward pricing
Closed end company
Corporate securities no prospectus specific number of shares traded on exchanges in over the counter country funds commission definenumber of shares traded on exchanges and over the counter. Country funds commission priced via supply and demand can be at a discount or premium over nav
ETN
Debt instrument offers a return linked to a market index or other benchmark also known as equity linked notes registers under securities act of 1933 the risks are credit market liquidity conflict of interest on secured generally issued by financial institutions such as banks prices can't be impacted by changes in the issuers crediting they cannot be bought or sold during normal exchange trading hours
What are alternative investments
Direct participation programs exchange traded notes
And analyst wishes to assess the value of a fixed income security by taking the income payment scheduled to be received over a given future. And adjusting that for the time value of money this is known as
Discounted cash flow
Fundamental analysis
Evaluate broad based economic trends current business conditions with an industry and quality of a particular corporation business finances and management
True or false tax deferral is a characteristic of a REIT
False
Yes always
Is the coupon bond duration less than the bond maturity
What are characteristics of a negotiable jumbo CD
Issued in amount of 100,000 to 1,000,000 traded in the secondary market
Discounted cash flow
Looking at future expected cash flow such as interest payments and in turn over turn on principle discounting it to a price at present value
12 B1 fees
Market and promo annual expenses charged against fund assets reduces nav paid quarterly
Management companies
Open end in closed-end are
ETF
Open end traded on exchanges intraday price fluctuating in the secondary market under investment company act
The term derivative applies to
Options forwards futures
Technical analysis
Predict the direction of prices on the basis of charts reflecting price and trading volume parents financial statements and company management uses moving average
Dividend discount model
Present value of future dividends
Characteristics of a receipt that are advantages are
Professional management liquidity diversification
Resistance
Reaches the high
Support
Reaches the low
Market risk for equity funds interest rate risk for bond funds fees and expenses no control over managers timing a purchases or sales
Risks of investment company securities a K a mutual funds
Duration
Sensitivity of a debt security when faced with the changes in interest rate
A client wishing to invest in precious metals could consider each of the following except
Silver gold and platinum are all precious metals lead is not
In a variable life contract which of the following has a guaranteed minimum
The death benefit
Shorter duration
The higher the coupon rate the the duration
Your client has heard about investment opportunities in life settlements among the risk involved with this investment is
The insured me live well past the expected mortality date
Longer duration
The larger the coupon rate the duration
Zero coupon
The length to maturity
Greater the market price movement
The longer the duration ___the market price movement
A client of and I a R mentioned that he has received a prospectus for a variable annuity but does not really understand the product it would be reasonable for the IAR to explain that a variable annuity offers an investor
The opportunity to invest in equity securities any tax deferred basis
Supply and demand
The price to purchase an ETF is determined by
Diversification professional management
Two primary benefits to purchasing any mutual fund
One of your clients approach you looking for an investment that will provide ready and marketable in income which of the family would be the most appropriate recommendation
US treasury notes
Convexity
What determines price volatility
Principal amount coupon rate number of interest payments
What is included in the Future value of cash flow
