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Wiley Series 62 Exam Review 2016 + Test Bank: The Corporate Securities Representative Examination(Wiley FINRA)

Wiley Series 62 Exam Review 2016 + Test Bank: The Corporate Securities Representative Examination(Wiley FINRA)


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About the Book

The go-to guide to acing the Series 62 Exam! Passing the Corporate Securities Limited Representative Exam (Series 62) qualifies an individual as a representative for the sale of public offerings and/or private placements of corporate securities, rights, warrants, closed-end funds, money market funds, REITs, asset-backed securities, mortgage-backed securities, and more. Topics covered on the exam include characteristics of securities and investments, the market for corporate securities, evaluation of securities and investments, and handling customer accounts and securities industry regulation. Created by the experts at The Securities Institute of America, Inc., Wiley Series 62 Exam Review 2016 arms you with everything you need to pass this challenging 115-question multiple-choice test. Designed to help you build and fine-tune your knowledge of all areas covered in the exam and to guarantee that you're prepared mentally and strategically to take the test, it provides: Dozens of examples Assorted practice questions for each subject area covered in the exam Priceless test-taking tips and strategies Helpful hints on how to study for the test, manage stress, and stay focused Wiley Series 62 Exam Review 2016 is your ticket to passing the Series 62 test on the first try—with flying colors!

Table of Contents:
ABOUT THE SERIES 62 EXAM xv ABOUT THIS BOOK xix ABOUT THE TEST BANK xxi ABOUT THE SECURITIES INSTITUTE OF AMERICA xxiii CHAPTER 1 EQUITY SECURITIES 1 What Is a Security? 1 Equity = Stock 2 Common Stock 2 Corporate Timeline 2 Values of Common Stock 4 Rights of Common Stockholders 5 Why Do People Buy Common Stock? 11 What Are the Risks of Owning Common Stock? 12 How Does Someone Become a Stockholder? 12 Preferred Stock 14 Dividend Distribution 18 Warrants 20 American Depositary Receipts (ADRs)/American Depositary Shares (ADSs) 22 Real Estate Investment Trusts (REITs) 22 Structured Retail Products/SRPs 24 Limited Partnerships 25 Pretest 33 CHAPTER 2 DEBT SECURITIES 39 Corporate Bonds 39 Types of Bond Issuance 40 Bond Certifi cate 41 Bond Pricing 41 Bond Yields 43 Bond Maturities 46 Types of Corporate Bonds 47 Zero-Coupon Bonds 49 Guaranteed Bonds 49 Convertible Bonds 49 The Trust Indenture Act of 1939 52 Bond Indenture 52 Ratings Considerations 52 Retiring Corporate Bonds 53 Collateralized Mortgage Obligation (CMO) 55 Exchange-Traded Notes (ETNs) 57 Other Asset Backed Securities 58 Pretest 59 CHAPTER 3 GOVERNMENT SECURITIES 63 Series EE Bonds 63 Series HH Bonds 64 Treasury Bills, Notes, and Bonds 64 Treasury Notes 65 Treasury Bonds 65 Treasury Bond and Note Pricing 65 Treasury STRIPS 66 Treasury Receipts 66 Treasury Infl ation-Protected Securities (TIPS) 66 Agency Issues 67 Pretest 69 CHAPTER 4 THE MONEY MARKET 71 Money Market Instruments 71 Corporate Money Market Instruments 71 Government Money Market Instruments 73 Municipal Money Market Instruments 74 International Money Market Instruments 74 Interest Rates 74 Pretest 77 CHAPTER 5 ECONOMIC FUNDAMENTALS 79 Gross Domestic Product 79 Economic Indicators 81 Economic Policy 83 Tools of the Federal Reserve Board 83 Fiscal Policy 86 International Monetary Considerations 88 London Interbank Off ered Rate/LIBOR 88 Yield Curve Analysis 88 Pretest 91 CHAPTER 6 ISSUING CORPORATE SECURITIES 95 The Securities Act of 1933 95 The Prospectus 96 The Final Prospectus 96 SEC Disclaimer 97 Misrepresentations 97 Tombstone Ads 98 Free Riding and Withholding/FINRA Rule 5130 98 Underwriting Corporate Securities 99 Exempt Securities 104 Review of Underwriting Agreements by FINRA 104 Exempt Transactions 105 Rule 415 Shelf Registration 110 Securities Off ering Reform Rules 110 SEC Rule 405 111 Offering of Securities by FINRA Members 112 Private Placements by Member Firms 112 Pretest 115 CHAPTER 7 TRADING SECURITIES 119 Types of Orders 119 The Exchanges 122 Priority of Exchange Orders 123 The Role of the Specialist/DMM 123 Crossing Stock 126 Do Not Reduce (DNR) 126 Adjustments for Stock Splits 127 Stopping Stock 128 Commission House Broker 128 Two-Dollar Broker 128 Registered Traders 129 Super Display Book/SDBK 129 Short Sales 129 Threshold Securities 132 Block Trades 134 Trading Along 134 Circuit Breakers 135 Listing Requirements for the NYSE 136 Reading the Consolidated Tape 137 Exchange Qualifiers 138 The Nasdaq Market 139 The Alternative Display Facility (ADF) 145 Trade Reporting and Comparison Service (TRACS) 145 Electronic Communication Networks (ECNs) 146 Unlisted Trading Privileges 146 Market Centers 146 SEC Regulation NMS 148 SEC Regulation ATS 148 Nasdaq International 149 Non-Nasdaq OTC BB 149 Pink OTC Market 150 Third Market 150 Fourth Market 151 Market Maker Regulations and Responsibilities 151 Times for Entering a Quote 152 The Opening Cross 152 Order Imbalances 152 The Nasdaq Official Opening Price (NOOP) 153 The Closing Cross 153 The Nasdaq Halt Cross 154 Withdrawing Quotes 154 Handling and Displaying Customer Limit Orders 155 The Manning Rule 158 The Order Audit Trail System (OATS) 158 Automated Confirmation System/ACT Market Center Trade Reporting Facility 159 ACT/TRF Trade Scan 160 Avoiding Double Reporting 162 Market Making During Syndication 166 Trade Reporting and Compliance Engine (TRACE) 170 Broker vs. Dealer 172 FINRA 5% Markup Policy 172 Markups/Markdowns When Acting as a Principal 173 Riskless Principal Transactions 174 Net Transactions with Customers/FINRA Rule 2124 175 Proceeds Transactions 175 Dominated and Controlled Markets 175 Net Transactions with Customers 176 Firm Quote Rule 176 The Firm Quote Compliance System (FQCS) 177 Trade Complaints Between Members 178 Arbitrage 178 Pretest 181 CHAPTER 8 CUSTOMER ACCOUNTS 185 Opening a Customer Account 185 Holding Securities 187 Mailing Instructions 188 Types of Accounts 188 Death of a Customer 190 Partnership Accounts 190 Corporate Accounts 190 Trading Authorization 191 Accounts for Employees of Other Broker Dealers 196 Numbered Accounts 196 Day Trading Accounts 196 Account Transfer 197 Option Accounts 198 Margin Accounts 198 Commingling Customer’s Pledged Securities 200 Wrap Accounts 200 Regulation S-P 200 Pretest 203 CHAPTER 9 MARGIN ACCOUNTS 209 Regulation of Credit 209 Establishing a Long Position in a Margin Account 212 Establishing a Short Position in a Margin Account 218 Combined Margin Accounts 223 Margin Requirements for Day Trading 224 Portfolio Margin Accounts 224 Securities Backed Lines of Credit 225 Pretest 227 CHAPTER 10 RETIREMENT PLANS 231 Individual Plans 231 Individual Retirement Accounts (IRAS) 232 Keogh Plans (HR-10) 237 Tax Sheltered Annuities (TSAs)/Tax Deferred Accounts (TDAs) 238 Employee Retirement Income Security Act of 1974 (ERISA) 242 Pretest 245 CHAPTER 11 BROKERAGE OFFICE PROCEDURE 249 Executing an Order 249 Clearly Erroneous Reports 251 Execution Errors 251 Corporate and Municipal Securities Settlement Options 252 When-Issued Securities 253 Government Securities Settlement Options 254 Accrued Interest 254 Rules for Good Delivery 257 Delivery of Round Lots 258 Delivery of Bond Certifi cates 258 Rejection of Delivery 259 Don’t Know Procedures (DK) 259 Fail to Deliver/Fail to Receive 259 Due Bills 259 Customer Account Statements 260 Carrying of Customer Accounts 260 Proxies 261 Pretest 263 CHAPTER 12 FUNDAMENTAL AND TECHNICAL ANALYSIS 267 Fundamental Analysis 267 Changes in the Balance Sheet 270 Technical Analysis 276 Efficient Market Theory 280 Capitalization Weighted Index 281 Price Weighted Index 281 Pretest 283 CHAPTER 13 CUSTOMER RECOMMENDATIONS, PROFESSIONAL CONDUCT, AND TAXATION 285 Professional Conduct in the Securities Industry 286 Fair Dealings with Customers 286 Recommendations to an Institutional Customer 290 Recommending Exchange Traded Funds (ETFs) 290 Information Obtained from an Issuer 291 Disclosure of Client Information 291 Borrowing and Lending Money 292 Gift Rule 292 Outside Employment 293 Private Securities Transactions 293 Customer Complaints 294 Investor Information 294 Know Your Customer 294 Investment Objectives 295 Risk vs. Reward 297 Suitability Standards 300 Recommendations through Social Media 300 Tax Structure 302 Investment Taxation 302 Calculating Gains and Losses 303 Taxation of Interest Income 305 Inherited Securities 305 Donating Securities to Charity 306 Estate Taxes 306 Withholding Tax 307 Corporate Dividend Exclusion 307 Alternative Minimum Tax (AMT) 307 Taxes on Foreign Securities 308 Pretest 309 CHAPTER 14 SECURITIES INDUSTRY RULES AND REGULATIONS 315 The Securities Exchange Act of 1934 315 The National Association of Securities Dealers (NASD) 317 Registration of Agents/Associated Persons 319 Securities Investor Protection Corporation Act of 1970 (SIPC) 333 The Securities Acts Amendments of 1975 335 The Insider Trading and Securities Fraud Enforcement Act of 1988 335 Telemarketing Rules 336 The Penny Stock Cold Call Rule 337 The Role of the Principal 338 Currency Transactions 342 The Patriot Act 342 The Uniform Securities Act (USA) 344 Sarbanes-Oxley Act 345 SEC Regulation S-K 346 SEC Regulation M-A 347 FINRA Rule 5150 Fairness Opinion 348 SEC Regulation S-X 349 Regulation FD Fair Disclosure 349 Pretest 351 ANSWER KEYS 357 GLOSSARY OF EXAM TERMS 369 INDEX 435


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Product Details
  • ISBN-13: 9781119138815
  • Publisher: John Wiley & Sons Inc
  • Publisher Imprint: John Wiley & Sons Inc
  • Edition: Revised edition
  • No of Pages: 480
  • Sub Title: The Corporate Securities Representative Examination
  • ISBN-10: 1119138817
  • Publisher Date: 30 Nov 2015
  • Binding: Digital (delivered electronically)
  • Language: English
  • Series Title: Wiley FINRA


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