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18 Cards in this Set
- Front
- Back
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Investment Banker
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Best-effort basis (commission not gaur sale)
Rirm -commitment basis. (risk is with IB) |
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Market by #'s
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1st. Organized echanges
2nd. OTC in non-esch listed issues 3rd OTC in echange listed issues 4th. Direct trading via Electronic... |
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1933
1934 |
33 Issuance. Prospectus, reg process. All info disclosed
34 Secondary mkt. Periodic reports On going disclosure req Insider trading |
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1940
1970 Banking 1933 |
40 sole practitioners, $25M
70 SIPC Brokerage accts up to $500k no more that $100k in cash |
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HPR
HPRR |
Holdig period return
Rate of return for the period held Holding period return relative End-period value relative to beginning of period value for specific holding period. |
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HPR + HPRR formulas
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HPR= (income Received + Change in Value)/Beginning Value
HPRR= (income received + ending value)/Beginning Value HPR=HPRR-1 |
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PPR
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Per Period Return
Particular period (period's income + Price Change)/Beg period value |
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PPRR
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Per-period Return Relative
(period's income + end of period value)/Beginning period value |
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Arithmetic Mean Return
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Simple avg return. Div sum of per period returns by number of period...
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Measures of Risk
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Range
Semivariance Standar deviation Coefficient of Variation Beta |
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Standard Deviation
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Measure of dispersion of distribution
- square root of the variance |
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Reg T
NYSE 431 Finra 2520 |
-50% initial margin rate
-25% Maintancence -30% on short positions |
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Buying Power
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BP = E/IMR - MV
Equity Initial Margin Rate Market Value of Acct |
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Net Equity
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total value of acct - amt of dept outstanding
E=MV-Loan |
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Correlation Coefficient
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Measure of co-movement tendency of two variables, such as returns on two securities.
Never less than minus 1 and never more than 1 |
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CML
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Capitol Market Line
Defines expected return for fully diversified portfolios Slope is the market price of risk |
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Capital Asset Pricing Model
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Explains returns as a funtion of risk-free rate, market risk premium, and beta
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Besta
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Parameter that relates stock or portfolio performance to market performance.
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