Series 7 MISC?

Who needs to sign the New Account Report Form?

The Branch Manager or Principal and the Registered Representative. The customer does not need to sign the form, once completed

Type of security an older client should invest in?

Fixed income securities and some cash

Asset Allocation

The diversification of investments in a customer's account determining the percentage of assets which should be invested in stocks, bonds, real estate, and other asset classes.

Considerations when determining a customer's risk tolerance

1. Number of dependents and their educational needs 2. Investment objectives 3. Net worth 4. Time Horizon

Type of security a younger client should invest in

Equities

Customers wishing to minimize risk in a common stock portfolio can accomplish this by investing so that:

1. The largest percentage of the securities in the portfolio are affected differently by economic conditions, and 2. The largest percentage of the portfolio consists of leading common stocks.

Foreign currency values will generally move inversely to the U.S. Dollar.

To stimulate the economy, the Fed would BUY US Gov't securities. This pumps money into the economy.

Federal Funds

Funds deposited by commercial banks at Federal Reserve Banks that are in excess of bank reserve requirements.

To slow down the economy the Fed would SELL US Gov't securities. This takes money out of the economy.

A US balance of payments deficit would decrease (improve) due to:

New foreign investments in the US, Commodity exports, Spending by foreign tourist in the US, Increased dividend and interest earned on foreign investments, Money coming into the US

A US balance of payments deficit would Increase (worsen) due to:

An increase in US investments abroad, US tourists spending abroad, US loans to other countries, raising dividends and interest payments on foreign-owned securities, money going out of the US

Efficient Market Hypothesis

Investment theory that states it is impossible to "beat the market" because the stock market is efficient, meaning that current share prices always reflect all relevant information.

Fundamental Analysis

Concerned with a specific company and factors specific to the company such as the company's earnings, price per share, debt level, etc.

Technical Analysis

concerned with market price movements and market trends. For example charting is a form of technical analysis.

Maximum gift tax exclusion?

One person = $13,000 Married couple = $26,000

Under MSRB rules, municipal securities dealers are prohibited from giving a gift in excess of $100 dollars per person per year.

Maximum gift amount to spouse

Unlimited

Gift Limits between associated persons and from associated persons to customers

Gifts are computed annually and may not exceed $100 giving or receiving per person per year.

solicitations may be placed only between the hours of 8 a.m. and 9 p.m. local time of the party called.

Fiduciary

A person vested with legal rights and powers to be exercised for the benefit of other persons. Examples include: Trustees, Executors, Administrators, Guardians, Custodians, and accounts For the Benefit Of (FBO) another person.