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SIE KNOWLEDGE OF CAPITAL MARKETS QUESTIONS WITH COMPLETE ANSWERS

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SIE KNOWLEDGE OF CAPITAL MARKETS QUESTIONS WITH COMPLETE ANSWERS

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policies enacted by the federal reserve board to influence money supply


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monetary policy




is the official name for an advertisement for a mutual fund. Omits most of the
information an investor would need to make an investing decision.

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Omitting Prospectus (Rule 482)




defines penalties for the misuse of material, nonpublic information by both firms and
individuals


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Insider Trading and Securities Fraud Enforcement Act of 1988




organization that pools contributions from investors, clients, or depositors and uses
these funds to buy stocks and other securities (banks, pension funds, mutual funds,
hedge funds)


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institutional investor




US government and agency securities, municipal securities, commercial paper, fixed
life insurance policies, national and state bank securities, S&L securities, charitable,
religious, educational, nonprofit, interest in common carriers


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exempt securities

,consists of 12 regional Federal Reserve Banks and hundreds of national and state
banks that belong to the system. FRB determines monetary policy and takes actions
to implement polices


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Federal Reserve Board




most prominent measure of general price changes. Measures the rate of the increase
or decrease of food, housing, transportation, medical care, clothing, electricity,
entertainment, and services


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CPI




agreement with an investment banker who guarantees a sale of securities by agreeing
to purchase the entire issue at a specified price


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Firm Commitment




the pace of inflation is extremely high and accelerating


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, hyperinflation




a type of best efforts underwriting where the syndicate must sell a minimum amount
(floor) and may sell up to a higher(ceiling), maximum amount.


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Mini-max




imports, US investment abroad, US bank loans abroad, U.S. foreign aid


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U.S. debits




a prolonged period of slow economic growth; usually accompanied by high
unemployment


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stagnation




tend to turn down as the economy heats up and to rise when the economy turns
down. Primary example would be hold mining and refinement, any precious metals
will do.

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