©PREP4EXAMS2024/2025 REAL EXAMS DUMP Thursday, August 8, 2024 6,44 PM
Sie exam study guide with complete solutions
MSRB - Answer✔️✔️-Municipal Securities Rulemaking Board
GO Bonds - Answer✔️✔️-Generally obligation bonds: municipal bonds that are
back by the full faith and credit of the taxpayers and must be approved by
taxpayers.
capital appreciation bond (CAB) - Answer✔️✔️-a long-term, high-interest-paying
bond that pays off both principal and interest in one lump sum when the bond
reaches maturity
Revenue Bonds - Answer✔️✔️-Bonds to be repaid with revenues from the projects
they finance, such as higher education bonds to be repaid with revenue from
student tution
parity of stock - Answer✔️✔️-bond market value/conversion ratio
yield to maturity - Answer✔️✔️-the rate of return a bondholder will receive if the
bond is held to maturity
Current Yield Formula - Answer✔️✔️-annual coupon/current price
Certificate of Participation (COP) - Answer✔️✔️-A municipal security paying a
share of lease revenues to the investor as opposed to a bond backed by such
revenues from a particular project.
zero coupon bond - Answer✔️✔️-a bond that makes no coupon payments and is thus
initially priced at a deep discount
1
,©PREP4EXAMS2024/2025 REAL EXAMS DUMP Thursday, August 8, 2024 6,44 PM
unqualified legal opinion - Answer✔️✔️-The statement of a bond counsel affirming
the compliance of a new municipal bond issue with municipal statutes and tax
regulations and expressing no reservations about its validity.
coupon rate - Answer✔️✔️-the interest rate that a bond issuer will pay to a
bondholder ( yearly amount bondholders will receive based on par value of the
security)
Bond Seesaw - Answer✔️✔️-When bonds are at par, current yield CY = coupon
When bonds are at a premium, the CY < coupon
When bonds are at a discount, the CY > coupon
Certificate of Deposit (CD) - Answer✔️✔️-a certificate issued by a bank to a person
depositing money for a specified length of time.
SLoBS
BLiSS - Answer✔️✔️-Sell Limit, Buy Stop
Buy Limit, Sell Stop
Three types of investment companies - Answer✔️✔️-(1) management companies,
(2) unit investment trusts, and (3) face amount certificate companies.
Fund Sponsor - Answer✔️✔️--Underwriter (creator of fund)
-must register funds with SEC before security can be sold
2
, ©PREP4EXAMS2024/2025 REAL EXAMS DUMP Thursday, August 8, 2024 6,44 PM
Investment Advisor - Answer✔️✔️-A financial professional who manages
investments and has been trained and licensed to do so/ contract approved by
shareholders
Selling Group - Answer✔️✔️-other brokerage firms that help the underwriting
syndicate(fund sponsor) sell issue to the public
Custodian Bank - Answer✔️✔️-The bank designated by a mutual fund to hold the
cash and securities of the fund and maintain fund level account records
(responsible for safe guarding assets)
Diversified Fund 75-5-10 Rule - Answer✔️✔️-- 75% or more of its assets invested
in securities
- max of 5% of its assets invested in any one issuer
- max holding of 10% of the voting securities in any one issuer
Growth Funds - Answer✔️✔️-Mutual funds that invest in the common stock of
established companies as well as in new companies and industries
Growth and Income Funds - Answer✔️✔️-a mutual fund whose investment goal is
to earn returns from both dividends and capital gains
Income Fund - Answer✔️✔️-Invest in fixed-income securities like preferred stock
and bonds
Balanced Fund - Answer✔️✔️-a mutual fund that invests in both stocks and bonds(
maintaining a balance)
3
Sie exam study guide with complete solutions
MSRB - Answer✔️✔️-Municipal Securities Rulemaking Board
GO Bonds - Answer✔️✔️-Generally obligation bonds: municipal bonds that are
back by the full faith and credit of the taxpayers and must be approved by
taxpayers.
capital appreciation bond (CAB) - Answer✔️✔️-a long-term, high-interest-paying
bond that pays off both principal and interest in one lump sum when the bond
reaches maturity
Revenue Bonds - Answer✔️✔️-Bonds to be repaid with revenues from the projects
they finance, such as higher education bonds to be repaid with revenue from
student tution
parity of stock - Answer✔️✔️-bond market value/conversion ratio
yield to maturity - Answer✔️✔️-the rate of return a bondholder will receive if the
bond is held to maturity
Current Yield Formula - Answer✔️✔️-annual coupon/current price
Certificate of Participation (COP) - Answer✔️✔️-A municipal security paying a
share of lease revenues to the investor as opposed to a bond backed by such
revenues from a particular project.
zero coupon bond - Answer✔️✔️-a bond that makes no coupon payments and is thus
initially priced at a deep discount
1
,©PREP4EXAMS2024/2025 REAL EXAMS DUMP Thursday, August 8, 2024 6,44 PM
unqualified legal opinion - Answer✔️✔️-The statement of a bond counsel affirming
the compliance of a new municipal bond issue with municipal statutes and tax
regulations and expressing no reservations about its validity.
coupon rate - Answer✔️✔️-the interest rate that a bond issuer will pay to a
bondholder ( yearly amount bondholders will receive based on par value of the
security)
Bond Seesaw - Answer✔️✔️-When bonds are at par, current yield CY = coupon
When bonds are at a premium, the CY < coupon
When bonds are at a discount, the CY > coupon
Certificate of Deposit (CD) - Answer✔️✔️-a certificate issued by a bank to a person
depositing money for a specified length of time.
SLoBS
BLiSS - Answer✔️✔️-Sell Limit, Buy Stop
Buy Limit, Sell Stop
Three types of investment companies - Answer✔️✔️-(1) management companies,
(2) unit investment trusts, and (3) face amount certificate companies.
Fund Sponsor - Answer✔️✔️--Underwriter (creator of fund)
-must register funds with SEC before security can be sold
2
, ©PREP4EXAMS2024/2025 REAL EXAMS DUMP Thursday, August 8, 2024 6,44 PM
Investment Advisor - Answer✔️✔️-A financial professional who manages
investments and has been trained and licensed to do so/ contract approved by
shareholders
Selling Group - Answer✔️✔️-other brokerage firms that help the underwriting
syndicate(fund sponsor) sell issue to the public
Custodian Bank - Answer✔️✔️-The bank designated by a mutual fund to hold the
cash and securities of the fund and maintain fund level account records
(responsible for safe guarding assets)
Diversified Fund 75-5-10 Rule - Answer✔️✔️-- 75% or more of its assets invested
in securities
- max of 5% of its assets invested in any one issuer
- max holding of 10% of the voting securities in any one issuer
Growth Funds - Answer✔️✔️-Mutual funds that invest in the common stock of
established companies as well as in new companies and industries
Growth and Income Funds - Answer✔️✔️-a mutual fund whose investment goal is
to earn returns from both dividends and capital gains
Income Fund - Answer✔️✔️-Invest in fixed-income securities like preferred stock
and bonds
Balanced Fund - Answer✔️✔️-a mutual fund that invests in both stocks and bonds(
maintaining a balance)
3
