Orion Series 65 Unit 1 Questions with Complete Solutions

Orion Series 65 Unit 1 Questions with Complete Solutions Security ->>>Any piece of securitized paper that can be traded for value, EX...Note, Stock, Bond, Investment contract, Debenture, Certificate of interest... ETC ...

Orion Series 65 Unit 1 Questions with Complete Solutions Security ->>>Any piece of securitized paper that can be traded for value, EX...Note, Stock, Bond, Investment contract, Debenture, Certificate of interest... ETC SEC Authority and Oversight ->>>During the cooling-off period, the SEC reviews registration statements and may issue stop orders. The SEC does not approve securities; it only clears them for distribution to the public. Municipal Securities ->>>Securities that are direct obligations of, or obligations guaranteed as to principal or interest by, a state or any political subdivision thereof, or any agent or instrumentality of a state or any political subdivision thereof. Most common is Municipal Bonds. Government Securities ->>>Securities that are direct obligations of, or obligations guaranteed as to principal or interest by, the US Government. The term also includes government agency securities, such as those issued by the Federal National Mrortgage Association (Fannie Mae). Churning ->>>Excessive trading in a customer's account by an agent who ignores the customer's interests and seeks only to increase commissions; violates NASAA's policies on unethical business practices. (SEE ALSO: overtrading) Matched Orders ->>>A major stockholder of the XYZ corporation makes frequent purchases and sales of this stock on the open market to give the impression that it is actively traded. 12b-1 fees ->>>A feel Charged by some mutual funds to cover sales and distribution expenses. IPO's ->>>Initial Public Offering - A corporations first sale of common stock ot the public. (SEE ALSO: new issue market; public offering) Underwriter ->>>An investment banker that works with an issuer to help bring a security to the market and sell it to the public Issuer ->>>The entity, such as a corporation or municipality that offers or proposes to offer its securities for sale Prospectus ->>>Any notice, circular, letter, or communication, written or broadcast by radio or television, that offers any security for sale or confirms the sale of a security. Prospectus does not include oral communications. Broker-Dealer ->>>A person in the business of buying and selling securities. A firm may act as both broker (agency) and dealer (principal), but not in the same transaction. Broker-dealer's normally must register with the SEC, the appropriate SROs, and any state in which they do business. Dealer ->>>An individual or a firm that charges a fee or commission for executing buy and sell orders submitted by another individual or firm. Broker ->>>The role of a firm when it acts as an agent for a customer and charges the customer a commission for its services Transfer Agent ->>>A person or corporation responsible for recording the names and holdings of registered security owners, seeing that certificates are signed by the appropriate corporate officers, affixing the corporate seal and delivering securities to the new owners Control Stock ->>>Stock held by a control person. What makes it control stock is who owns it, not how it was acquired. In general, purchases and sales of control stock must be reported to the SEC. Control Person ->>>A corporate director, officer, greater than 10% voting stockholder, or the spouse of any of the preceding is a control person. They are loosely referred to as insiders or affiliates because of their unique status within the issuer Restricted Security ->>>An unregistered, nonexempt security acquired either directly or indirectly from the issuer, or an affiliate of the issuer, in a transaction that does not involve a public offering. (SEE ALSO: Holding Period; Rule 144) Exchange ->>>An organization, association, or group of persons providing a marketplace or facilities for bringing together purchasers and sellers of securities. The term includes the marketplace and the facilities. Secondary Exchanges ->>> Discretionary Authority-Discretionary Account ->>>Customers can give discretionary power over their account(s) only by filing a written trading authorization or a limited power of attorney with the broker-dealer. Insider Trading ->>>The illegal practice of trading on the stock exchange to one's own advantage through having access to confidential information. (Google Definition) Passive Investor ->>>Any person who can certify that they did not purchase or do not hold the securities for the purpose of changing or influencing control over the issuer and hold no more than 20% of the issuer's securities. Wash Trades ->>>A securities transaction that involves no change in the beneficial ownership of the security. Investment Company ->>>A company engaged in the business of pooling investors' money and trading securities for them. Examples include face-amount certificate companies, unit investment trusts, and management companies. Open-end investment - Mutual Fund ->>>An investment company that continuously offers new equity shares in an actively managed portfolio of securities. All shareholders participate in the funds gains or losses. The shares are redeemable on any business day at the net asset value. Each mutual fund's portfolio is invested to match the objective stated in the prospectus. Closed-end investment ->>>An investment company that issues a fixed number of shares in an actively managed portfolio of securities. The shares may be of several classes; they are traded in the secondary marketplace, either on a stock exchange or over the counter. The market price of the shares is determined by supply and demand and not by asset value. Custodian ->>>An institution or a person responsible for making all investment, management and distribution decisions in an account maintained in the best interests of another. Mutual funds have custodian banks responsible for safeguarding certificates and performing clerical duties. Prohibited activities of investment companies ->>>Purchase any security on margin, Participate on a joint basis in any trading account in securities, Sell any security short, Acquire more than 3% of the outstanding voting securities of another investment company Money Laundering ->>>Involves disguising financial assets so they can be utilized without detecting the illegal activity that produced them. Agent ->>>Any individual who represents a broker-dealer or issuer in effecting or attempting to effect purchases or sales of securities. Investment Adviser ->>>Any person who, for compensation, engages in the business of advising others, either directly or through publications or writings, as to the value of securities or as to the advisability of investing in, purchasing or selling securities; OR Who, for compensation and as a part of a regular business, issues or promulgates analyses or reports concerning securities.