Series 66 - F's

The flashcards below were created by user new_agent on FreezingBlue Flashcards.

  1. One type of investment company which issues debt certificates at a discount and the holder will receive face value at maturity.
    Face Amount Certificate Company
  2. Debt Securities issued by agencies of the U.S. Government or government-sponsored corporations. Federal Agency issues normally trade at a higher yield than U.S. Government Obligations, such as Treasury Bills, notes or Bonds.
    Federal Agency Issues
  3. A Federal Covered Advisor generally includes advisors who manage assets of $25 million or more or who advise registered investment companies
    Federal Covered Advisor
  4. Any security not required to be registered with the states.
    Federal Covered Security
  5. Freddie Mac is a publicly chartered agency that buys conventional residential mortgages from financial institutions and issues securities backed by the pooled mortgages. Investors who own a Freddie Mac security receive a share of the interest and principal payments made by the homeowners. Therefore, Freddie Mac buys residential mortgages and packages the mortgages into securities backed by the mortgages which have been pooled together. Freddie Mac provides guarantees on the mortgages and the resells the mortgage-backed security in the market place. Income received by investors on securities issued by Freddie Mac is subject to Federal, state and local taxation.
    Federal Home Loan Mortgage Corporation-Freddie Mac
  6. The central banking system in the U.S. consisting of 12 Federal Reserve Banks throughout the country.
    Federal Reserve System
  7. A person or institution vested with legal rights and powers to be exercised for the benefit of another person.
  8. An inventory accounting method where the inventory is assumed to be sold in the same order as it was purchased.
  9. An order to buy or sell securities which must be filled immediately in its entirety or not at all.
    Fill or Kill Order
  10. A type of underwriting where the investment banker buys the shares from the issuing corporation and offers them to the public. The fee received by the syndicate is called the "spread".
    Firm Commitment
  11. Defined as a market in which at least 100 shares will be executed.

    For example, a market maker responds to a quote by stating "15 - 15.50". The market maker will sell at least 100 shares at 15.50 or buy at least 100 shares at 15.
    Firm Market
  12. Refers to the spending and taxing policies of the U.S. Government and is controlled by Congress. To stimulate the economy by using Fiscal Policy, government spending would be increased and Federal taxes would be decreased.
    Fiscal Policy
  13. A member of a stock exchange who executes orders for other members of an agency basis.
    Floor Broker
  14. Government sponsored publicly owned corporations which purchases
    mortgages from institutions and resells them to public investors. Shares
    in "Fannie Mae" are traded on the NYSE. The stock is interest rate
    sensitive, usually increasing in price on declining interest rates and
    decreasing in price on rising interest rates.
  15. FNMA
    Fannie Mae
  16. Financial institutions trade directly with each other without a broker/dealer. For example, an insurance company buys various corporate securities directly from a mutual fund. This is a fourth market trade and does not involve a broker dealer.
    Fourth Market
  17. Fraud includes common law deceit as well as violations of federal and state statutes.
  18. The failure of an underwriter to make a bona fide public distribution on a hot issue.
    Free Riding and Withholding
  19. Also referred to as a "full power of attorney". It allows a third party to make purchase and sale decisions and also withdraw cash or securities from the account.
    Full Trading Authorization
  20. In this type of sharing arrangement, the general partner bears all of the capital or tangible costs of drilling oil wells, which must be capitalized for tax purposes. The limited partners bear the intangible costs which can be deducted as they occur.1
    Functional Allocation Sharing Arrangement
  21. A method of security analysis which concentrates on a particular company's financial statements, earnings, management and strategic position in its industry. A fundamental analyst attempts to determine under-valued securities based on these factors.
    Fundamental Analysis
  22. The term is used in relation to corporate debt and not U.S. Government or municipal debt. The corporate debt issue is likely to have a sinking fund provision relating to the retirement of the bond issue.
    Funded Debt
  23. Types of Funded Debt
    Technically defined as bonds, notes, or bank loans with one year or more remaining to maturity.
Card Set
Series 66 - F's
Series 66 definitions, terms
Show Answers