Wiley Series 6 Exam Review 2015 + Test Bank

ABOUT THE SERIES 6 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
 
Preferred Stock 12
 
Options 20
 
Calls 20
 
Puts 20
 
Bullish vs. Bearish 21
 
Characteristics of All Options 21
 
Exercise Price 22
 
Buyer vs. Seller 22
 
Possible Outcomes for an Option 22
 
Currency Risks 23
 
Functions of the Custodian Bank Issuing ADRs 23
 
Real Estate Investment Trusts (REITs) 23
 
Issuing Corporate Securities 24
 
Types of Underwriting Commitments 24
 
Types of Offerings 25
 
Awarding the Issue 26
 
The Underwriting Syndicate 26
 
Selling Group 26
 
Securities Markets 27
 
The Exchanges 28
 
Over the Counter/Nasdaq 28
 
Market Makers 29
 
Third Market 29
 
Fourth Market 29
 
Broker vs. Dealer 29
 
Pretest 31
 
CHAPTER 2 DEBT SECURITIES 35
 
Corporate Bonds 35
 
Types of Bond Issuance 36
 
Bond Certificate 37
 
Bond Pricing 37
 
Corporate Bond Pricing 38
 
Bond Yields 38
 
Bond Maturities 41
 
Types of Corporate Bonds 42
 
Converting Bonds into Common Stock 45
 
Advantages of Issuing Convertible Bonds 46
 
Disadvantages of Issuing Convertible Bonds 46
 
Convertible Bonds and Stock Splits 46
 
The Trust Indenture Act of 1939 47
 
Bond Indenture 47
 
Ratings Considerations 47
 
Retiring Corporate Bonds 48
 
Collateralized Mortgage Obligation (CMO) 50
 
CMOs and Interest Rates 50
 
Types of CMOs 51
 
Private-Label CMOs 52
 
Exchange-Traded Notes (ETNs) 53
 
Pretest 55
 
CHAPTER 3 GOVERNMENT AND MUNICIPAL SECURITIES 59
 
Series EE