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SIE Section 3

Terms in this set (15)

Contemporaneous trader
A person who enters a trade at or near the same time and in the same security as a person who has inside information. The contemporaneous trader may bring suit against the inside trader.
Cost basis
The original purchase price of a security, inclusive of sales charges, used to calculate capital gains and losses
Market sentiment
The feeling or tone of the market; the prevailing attitude of investors as to the direction of the market
Russell 2000
An equity index that is used as a benchmark for small-cap stocks and mutual funds
S&P 500
A market cap weighted index that is a common benchmark for the broader US equity market
Specific identification
Allows an investor who is selling securities that have been acquired through series of purchases to select those shares that provide the most favorable cost basis for tax purposes
Commingling
Prohibit a practice of combining the funds of the firm with those of its customers
Consumer
An individual who obtains products or services from a financial institution, but who usually has no contact with that institution beyond the one time delivery of products or services
Correspondence
Any written or email messages distributed to either existing customers or 225 or fewer prospective customers within any 30 calendar day period
Customer
In individual or entity with which financial institution expects to have a continuing relationship
Fully paid securities
Securities carried in a special cash account or in a margin account in which the customer has made full payment
Hypothecation
Collateralizing Securities, as a margin or hypothecation agreement, providing a broker/dealer to pledge them as collateral to a bank or to another broker/dealer
Margin Securities
Securities held for a customer and a margin account as defined by regulation T
Money laundering
The process of making illegally gained proceeds appear legal
Retail communications
Any written or electron it communication distributed or may generally available to customers or the public
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