Series 66 definitions - A's

  1. The process of increasing the cost basis of an original issue discount bond.
  2. Represent interest that has accrued from the last interest payment date and the sale of the bond. The buyer of the bond pays accrued interest to the seller.
    Accrued Interest
  3. An accounting measure, used to determine a variable annuity contract owner's interest in the separate account of securities.
    Accumulation Unit
  4. Before bonds of an additional issue having the same claim or lien on pledged revenues can be issued, an earnings test must be met.
    Additional Bonds Test
  5. The designated person in a state who administrates the securities regulations of the state and administrates the Uniform Securities Act.
  6. The term "___" refers to material designed for use through a mass medium. A broker. Dealer using ___ cannot control who receives it since it may be transmitted by radio, television or
  7. Document which attests to the residence of a deceased person. In certain states, to transfer securities in a joint tenancy on the death of a tenant, an Affidavit of Domicile, Death Certificate, and Inheritance Tax Waiver must be completed.
    Affidavit of Domicile
  8. Any individual who represents a broker/dealer or issuer in effecting or attempting to effect purchases or sales of securities.
  9. Specifies each underwriter's participation in a new issue of securities.
    Agreement Among Underwrites
  10. This is an order to buy or sell securities which must be executed in its entirety or not at all. However, an "___" does not have to be executed immediately.
    All or None Order
  11. Statistical measurement which describes the expected return of a particular security relating to the security itself rather than market
  12. It is a Federal Income Tax designed to prevent taxpayers from escaping taxes by investing in Tax Preference Items.
    Alternative Minimum Tax
  13. Represents receipts for shares in foreign corporations. By purchasing ____, American investors receive dividends in American dollars through the bank which holds the shares.
    • American Depository Receipts
    • (ADRs)
  14. An accounting procedure or process in which the premium of a bond is written off over its remaining life.
  15. When a security trades "____," interest is added to the purchase price. When an investor buys a bond, he pays the purchase price plus
    accrued interest.
    And interest
  16. A contract sold by a life insurance company that guarantees a fixed or variable payment to the investor (annuitant) at a future date of time, generally retirement.
  17. An accounting measure used to determine the amount of each payment to the annuitant. The annuity unit fluctuates according to the value of the securities kept in a separate account.
    Annuity Units
  18. Buying securities in one marketplace and selling them in another to take advantage of a price disparity. For example, buying 100 shares of ABC at 25 on the NYSE and immediately selling 100 shares of ABC at 25.25 on the Pacific Stock Exchange.
  19. In the securities industry, disputes may be settled by ___. ____ is less costly and more efficient than litigation. The decision in an ____ proceeding is binding.
  20. The term "___" refers to the percentage a client's portfolio is assigned to equities, bonds, and money market instruments. assets may be allocated in equities by investing in different industries. Assets may be allocated in bonds by investing in corporate, U.S. Government and municipals. Registered representatives determine a client's investment objectives an make recommendation concerning asset
    allocation and risk management.
    Asset Allocation Principles
  21. Describes a situation where the market price of the underlying security and the strike price of the option are the same. For example, assume a customer buys 1 ABC July 40 call. If the underlying security ABC is selling at $40 per share, the option is selling "__".
  22. Represents the maximum number of shares a company may legally create for issuance. These terms are included in the Articles of Incorporation.
Card Set
Series 66 definitions - A's
list of definitions to study for the Series 66