Knowledge of Capital Markets: flashcards

All cards

Exam structure

75 scored items + 5 unidentified pretest = 80 items in 105 minutes.

Passing score and fee

70 to pass, $100 to sit. Results valid 4 years.

SIPC vs FDIC

SIPC = customers of a failed broker-dealer. FDIC = bank deposits.

Third vs fourth market

Third = listed securities traded OTC. Fourth = institution to institution, no intermediary.

Monetary vs fiscal

Monetary = the Fed, rates and open market operations. Fiscal = taxation and spending.

Firm commitment vs best efforts

Firm commitment = underwriter as principal, carries the risk. Best efforts = agent, issuer keeps risk.

Business cycle order

Contraction, trough, expansion, peak.