TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
SERIES 6 EXAM STUDY GUIDE WITH
COMPLETE SOLUTIONS
12b-1 Fee - Answer✔️✔️-a fee that enables the cost of marketing, to all existing fund
shareholders.
The maximum 12b-1 fee under FINRA rules is .75% of net assets
cannot call a fund a no-load if the 12b-1 exceeds .25% of net assets
Ask Price - POP - Answer✔️✔️-Price at which a market maker will sell 100 shares to
public at the next computed net asset value plus a sales charge
AMT - Answer✔️✔️-Alternative minimum tax - tax code that attempts to make high
income taxpayers that use a large amount of tax deductions to reduce their taxable
income pay a fair tax 26-28%
ADR's - Answer✔️✔️-American depository receipts - registered and listed receipts held
by banks such as J.P. Morgan & Chase of foreign corporate securities bought overseas
that trade like any other stock
Asset Allocation Fund - Answer✔️✔️-A mutual fund that invests in a variety of asset
classes such as foreign securities, domestic U.S. securities (common stocks, preferred
stocks, bonds, and money market instruments), real estate, gold, and other precious
metals.
Authorized Stock - Answer✔️✔️-The legal number of stock a corporation can issue
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, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
BA's - Answer✔️✔️-Bankers Acceptance - a money market instrument used to finance
imports and exports
Best Efforts Underwriting - Answer✔️✔️-an investment banker committing to act as a
selling agent assuming no financial risk "makes best efforts to sell"
Bid Price - NAV - Answer✔️✔️-Price at which a market maker will buy 100 shares from
the public at the net asset value
Blend Fund - Answer✔️✔️-a mutual fund that invests in both growth and value stocks
Blue-chip Stock - Answer✔️✔️-Securities issued from the largest, consistently profitable
american companies. "steady growth and dividends"
Bond - Answer✔️✔️-long term debt security issued by a corporation, government, or
municipality that pays a fixed or variable interest rate semi annually until maturity which
the face value is payed back to the investor.
Bond Indenture - Answer✔️✔️-Written agreement between the issuer and investor stating
the terms of the bond such as the rate of interest, repayment schedule, and the
protections of the bond holder.
Book Entry - Answer✔️✔️-the way bonds, mutual funds, and equity securities are
issued.the record of ownership is kept by the Transfer agent, no physical certificates.
Book Value - Answer✔️✔️-what a company is worth if the business were terminated. The
value after tangible asset's sold and liability's paid off.
2/5
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
SERIES 6 EXAM STUDY GUIDE WITH
COMPLETE SOLUTIONS
12b-1 Fee - Answer✔️✔️-a fee that enables the cost of marketing, to all existing fund
shareholders.
The maximum 12b-1 fee under FINRA rules is .75% of net assets
cannot call a fund a no-load if the 12b-1 exceeds .25% of net assets
Ask Price - POP - Answer✔️✔️-Price at which a market maker will sell 100 shares to
public at the next computed net asset value plus a sales charge
AMT - Answer✔️✔️-Alternative minimum tax - tax code that attempts to make high
income taxpayers that use a large amount of tax deductions to reduce their taxable
income pay a fair tax 26-28%
ADR's - Answer✔️✔️-American depository receipts - registered and listed receipts held
by banks such as J.P. Morgan & Chase of foreign corporate securities bought overseas
that trade like any other stock
Asset Allocation Fund - Answer✔️✔️-A mutual fund that invests in a variety of asset
classes such as foreign securities, domestic U.S. securities (common stocks, preferred
stocks, bonds, and money market instruments), real estate, gold, and other precious
metals.
Authorized Stock - Answer✔️✔️-The legal number of stock a corporation can issue
1/5
, TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD
OWNER: EMILLYCHARLOTTE
COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED
FIRST PUBLISHED: SEPTEMBER 2024
BA's - Answer✔️✔️-Bankers Acceptance - a money market instrument used to finance
imports and exports
Best Efforts Underwriting - Answer✔️✔️-an investment banker committing to act as a
selling agent assuming no financial risk "makes best efforts to sell"
Bid Price - NAV - Answer✔️✔️-Price at which a market maker will buy 100 shares from
the public at the net asset value
Blend Fund - Answer✔️✔️-a mutual fund that invests in both growth and value stocks
Blue-chip Stock - Answer✔️✔️-Securities issued from the largest, consistently profitable
american companies. "steady growth and dividends"
Bond - Answer✔️✔️-long term debt security issued by a corporation, government, or
municipality that pays a fixed or variable interest rate semi annually until maturity which
the face value is payed back to the investor.
Bond Indenture - Answer✔️✔️-Written agreement between the issuer and investor stating
the terms of the bond such as the rate of interest, repayment schedule, and the
protections of the bond holder.
Book Entry - Answer✔️✔️-the way bonds, mutual funds, and equity securities are
issued.the record of ownership is kept by the Transfer agent, no physical certificates.
Book Value - Answer✔️✔️-what a company is worth if the business were terminated. The
value after tangible asset's sold and liability's paid off.
2/5
