Series 6 Review #2

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Across
  1. 6. U.S. Treasury securities or mutual funds focusing on U.S. Treasury securities would be ideal investments for a capital __________ investment objective
  2. 10. This market describes exchange-listed securities being traded in the OTC market
  3. 11. _____ stock is the maximum number of shares a corporation may issue under the terms of its charter
  4. 13. The Code of _______ provides a method for handling securities-related disputes or clearing issues between members, public customer or clearing corporations
  5. 16. A ______ fund is a mutual fund of common stock from a particular industry
  6. 18. Tactical asset allocation requires an ______ management of the portfolio
  7. 21. A ____________ plan is a type of defined contribution plan where the employer does not have to make contributions if the company does not do well
  8. 24. A schoolteacher would most likely participate in a ___________
  9. 29. This market is an interdealer market in which unlisted securities trade
  10. 33. If a beneficiary of an IRA is under 59 1/2, they will not receive the 10% early withdrawal penalty but will be ________
  11. 34. An income bond is also known as a(n) ________ bond
  12. 35. A direct ________ is a way to move an IRA from one custodian to another without any tax consequences
  13. 36. 457 plans are for state and local __________ employees
  14. 39. Over funding an IRA results in a ____ percent penalty
  15. 40. Contributions to a Traditional IRA are tax ____________
  16. 41. _______ include house, automobiles, retirement plans and savings accounts
  17. 42. A 30 year old saving for retirement would most like pursue a capital ____________ investment objective
  18. 46. Another word for control person or affiliate
  19. 47. The duration of an interest-paying bond is always ________ than the time to its maturity
  20. 48. _________ purchase plans require employers to make contributions to each employee’s account based on his or her salary
  21. 49. Censure, fines, suspension and expulsion are some of the _______ found under the Code of Procedure
  22. 51. An individual who is under 59 ½ can remove their cost basis after 5 years but without ________
  23. 53. ____ action claims are not subject to arbitration
  24. 54. A 45 year old investor looking for income at a certain time will most likely invest in ________ funds, which will reallocate funds to fixed income securities as the investor approaches a certain date
  25. 56. In a defined ______ plan, the employer bears the risk
  26. 57. This risk is when changes in laws or rules have negative impacts on investments
  27. 59. If an IRA was overfunded, the excess and _______ must be removed to not receive the penalty
  28. 60. This type of investment strategy can provide investors with consistent long-term distributions.
  29. 61. The duration of a zero-coupon bond is always _____ to the time to its maturity
  30. 62. If the dispute involves irreparable injury to one of the parties, that party may seek an interim or permanent _________
  31. 63. These industries tend to turn down as the economy heats up
  32. 68. A theory behind Subchapter M under which distributions to shareholders are not taxed to the investment company
  33. 69. This reflects a corporation’s reputation and relationship with its clients
  34. 70. The date the BOD announces a dividend
  35. 73. Yield stated on the bond’s coupon
  36. 76. With a _________, the owner of an IRA will receive the funds and be given a certain amount of time to fund a new plan
  37. 78. ________ strategic allocation refers to short-term portfolio adjustments
  38. 80. Individuals can continue to make contributions to a Roth IRA as long as they have _______ income with which to do so.
  39. 81. Any party to an unresolved dispute may ______ proceedings by filing a claim with the director of arbitration
  40. 84. _________ stock are shares held by the public
  41. 86. The NAC has the right to _______ the registration of any associated person
  42. 88. One feature of many retirement plans is ___________, meaning the individual will not be taxed until funds are withdrawn
  43. 89. An investors _______ statement would include salary, mortgage payment, investment income and living expenses
  44. 90. The NAC has the right to _____ a member
  45. 91. Contributions made into a 403(b) plan are made with ________ money
  46. 92. The IRS penalty imposed on contributions to an IRA is for the amount _______ the maximum limit
  47. 94. A money market fund would be more suitable than T-bonds for an investor that has ________ concerns
  48. 95. In a Roth IRA, money withdrawn is tax-free provided that the owner is at least 59 ½ and has held the account for at least ____ years
  49. 96. One who deals in securities as a principal, buying and selling for his own account at its own risk
Down
  1. 1. This market involves electronic communication networks
  2. 2. A(n) _______allows a small business owner to make pre-tax contributions into any eligible employees account. Employees do not make contributions.
  3. 3. A(n) __________ stock is the stock of normally strong, well-established companies that have demonstrated their ability to pay dividends in good and bad times
  4. 4. This is the difference between what an investor own and what they owe
  5. 5. When a bond has a long duration, the greater the ______________ risk
  6. 7. An investment objective for investors that are willing and able to take considerable risks for the chance of big returns
  7. 8. Investing in a specific security at an inopportune time is called _______ risk
  8. 9. This fund has a mix of equities and bonds, growth with opportunity for income
  9. 12. Automatic ________ is an option available to mutual fund shareholders whereby fund dividends and capital gains are put back into the fund
  10. 14. In this type of IRA, individuals are required to take a withdrawal starting at age 72
  11. 15. The maximum _______ to a Traditional IRA or Roth IRA for someone under 50 years old is $6000
  12. 17. The longer the time horizon, the more ______ the investor can tolerate
  13. 19. A(n) ________ fund is a mutual fund that invests in common stocks from outside the U.S. Exposure to exchange rate risk and political risk
  14. 20. Strategic asset allocation is considered a ___________ management style
  15. 22. A drawback of a capital preservation strategy is the effect of ________ on the rate of return from “safe” investments over prolonged periods of time
  16. 23. ______ funds are securities from inside and outside the U.S.
  17. 25. A contract between an insurance company and an individual that generally guarantees lifetime income to the person whose life the contract is based
  18. 26. The longer a bonds duration, the ______ sensitivity to interest rate changes
  19. 27. Date where the BOD checks if a shareholder is listed with the company, so they can get paid their dividends
  20. 28. An investor with a(n) __________ time horizon can take on moderate risk
  21. 30. The risk when the possibility that principal or interest will not be paid
  22. 31. _____________ industries include food, pharmaceuticals and tobacco and are the least affected by normal business cycles
  23. 32. This type of plan is good for someone who is self-employed or works for a sole proprietorship
  24. 37. In order to be considered complete, a rollover must be done within _______ days
  25. 38. __________ coins are allowed to be used to fund an IRA
  26. 41. If a party does not like the decision of the NAC, they may ___ to the SEC
  27. 43. Risk ____ is another way to say conservative
  28. 44. Since all money coming out of a Traditional IRA is subject to taxation, __________ bonds would make poor investments due to their tax advantages.
  29. 45. An investment ____________ can be defined as any goal that an investor has including current income or capital preservation
  30. 50. ________ is often used to assess the sensitivity of a bond in response to interest changes
  31. 52. This is an alternate dispute resolution process which is considered a reasonable and inexpensive first step
  32. 53. Type of Educational IRA
  33. 55. if you see the term auction market, think _________
  34. 58. A(n) _________ sale is the sale of investment company shares in amounts just below the point at which the sales charge is reduced
  35. 62. The fourth market involves _______ investors with no assistance by broker-dealers
  36. 64. If an individual waits to take their first RMD withdrawal until April 1st of the following year, they will now need to take _____ distributions
  37. 65. _______ investors are individuals who have a primary goal of preserving capital with a secondary goal to earn income
  38. 66. _______ include mortgage payments, auto loans and credit card balances
  39. 67. _________ income is the amount of income a household or individual has to invest, save, or spend after taxes and necessities are paid. Discretionary income is what people use to pay for entertainment, luxury items
  40. 71. An investors risk _______ is determined not only by their age and financial resources available but also by the individual’s psychological ability to tolerate wide fluctuations in market value and an occasional loss of principal
  41. 72. This type of IRA is funded with after-tax dollars and contributions are not tax deductive
  42. 74. A Banker’s ______ is essentially a letter of credit from a bank guaranteeing payment of a debt
  43. 75. For a Traditional IRA and Roth IRA, if someone is 50 years of age or older, they can make a _________ contribution of $1000
  44. 77. ____________ income is the amount of net income a household or individual has available to invest, save, or spend after income taxes.
  45. 79. An __________ unit is an accounting measure to determine an annuitant’s proportionate interest in the insurer’s separate account during an annuity’s deposit phase
  46. 82. _________ investors tend to be younger, market-savvy and willing to take on extensive market swings
  47. 83. IRS Rule 72t stands for _________ equal periodic payments
  48. 85. a _______ investor values reducing risk and enhancing returns equally
  49. 87. An investor with a three year time horizon should stick with __________ with short-term maturities
  50. 93. Property, plants and equipment are considered ________ assets