| Introduction |
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1 | (1) |
| About This Book |
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1 | (1) |
| Foolish Assumptions |
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2 | (1) |
| Icons Used in This Book |
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2 | (1) |
| Beyond the Book |
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2 | (1) |
| Where to Go from Here |
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3 | (2) |
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PART 1 GETTING STARTED WITH THE SIE EXAM |
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5 | (44) |
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Chapter 1 Introducing the SIE (Securities Industry Essentials) Exam |
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7 | (12) |
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What Is the SIE Exam, Anyway? |
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7 | (1) |
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Profiling the SIE Exam-Taker |
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8 | (1) |
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One's Not Enough: Tackling the Co-Requisite Exams |
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8 | (2) |
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Series 6: Investment Company and Variable Products Representative Exam |
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9 | (1) |
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Series 7: General Securities Representative Exam |
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9 | (1) |
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Series 22: DPP Representative Exam |
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9 | (1) |
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Series 57: Securities Trader Exam |
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9 | (1) |
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Series 79: Investment Banking Representative Exam |
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9 | (1) |
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Series 82: Private Securities Offerings Representative Exam |
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9 | (1) |
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Series 7 + Series 86 + Series 87: Research Analyst Exam |
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10 | (1) |
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Series 99: Operations Professional Exam |
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10 | (1) |
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10 | (2) |
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Filling out an application to enroll |
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10 | (1) |
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It's a date! Scheduling your exam |
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10 | (1) |
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Planning ahead for special accommodations |
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11 | (1) |
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Just in case: Cancelling as an option |
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12 | (1) |
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Taking a Peek at the Tested Topics |
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12 | (2) |
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Understanding the Exam Format and Other Exam Details |
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14 | (5) |
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Reviewing the exam basics |
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14 | (1) |
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Practicing on ten additional trial questions |
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14 | (1) |
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Mastering the computerized format and features |
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14 | (2) |
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Instant gratification: Receiving and evaluating your score |
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16 | (3) |
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Chapter 2 Preparing for the SIE Exam |
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19 | (12) |
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Courses and Training Materials: Determining the Best Way to Study |
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19 | (3) |
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Back to school: Attending a prep course |
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19 | (2) |
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Selecting prep material to study on your own |
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21 | (1) |
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Managing Your Study Time Wisely |
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22 | (4) |
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Blocking out some time to study |
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23 | (1) |
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Ifs a plan: Getting into a study routine |
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23 | (1) |
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Give it a rest: Taking short breaks |
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24 | (1) |
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Staying focused from day to day |
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24 | (1) |
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Devoting time to practice tests |
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25 | (1) |
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25 | (1) |
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25 | (1) |
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Exploring Study Strategies |
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26 | (1) |
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Developing Solid Test-Taking Skills |
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26 | (3) |
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Read the question carefully |
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27 | (1) |
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Look for phrases that lead to the topic tested |
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27 | (1) |
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27 | (1) |
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Don't obsess; mark for review |
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27 | (1) |
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27 | (1) |
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Master the process of elimination |
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28 | (1) |
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Maintain your concentration |
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28 | (1) |
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Think carefully before changing your answers |
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29 | (1) |
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Use the scrap paper wisely |
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29 | (1) |
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Knowing When You're Ready |
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29 | (2) |
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Chapter 3 Examining and Mastering Question Types |
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31 | (12) |
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Familiarizing Yourself with Question Formats |
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31 | (7) |
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Working with the straight shooters: The straightforward types |
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32 | (1) |
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Encountering quirky questions with qualifiers |
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33 | (1) |
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Roman hell: Complex multiple choice |
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34 | (2) |
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Looking at exhibits: Diagram questions |
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36 | (2) |
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Shredding the Questions: Tips and Tricks |
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38 | (5) |
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Focusing on key information |
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38 | (1) |
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Answer me this: Picking the correct answer |
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39 | (2) |
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Don't make the same mistake twice.: |
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41 | (2) |
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Chapter 4 Surviving Test Day |
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43 | (6) |
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Composing Yourself the Day Before |
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43 | (1) |
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Making the Most of the Morning |
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44 | (1) |
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45 | (1) |
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Taking advantage of one last chance to cram |
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45 | (1) |
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45 | (1) |
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45 | (1) |
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46 | (1) |
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Getting the Results: Drum Roll, Please |
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47 | (2) |
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PART 2 MASTERING BASIC SECURITY INVESTMENTS |
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49 | (56) |
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Chapter 5 Underwriting Securities |
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51 | (10) |
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Bringing New Issues to the Market |
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51 | (5) |
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Starting out: What the issuer does |
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51 | (3) |
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Role call: Introducing the team players |
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54 | (2) |
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Getting the skinny on the issue and issuer: The prospectus |
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56 | (1) |
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Counting the securities along the way |
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57 | (4) |
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Getting Up to Speed on the Types of Securities Offerings |
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57 | (1) |
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58 | (1) |
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58 | (1) |
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59 | (2) |
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Chapter 6 Corporate Ownership: Equity Securities |
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61 | (12) |
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Beginning with the Basics: Common Stock |
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61 | (7) |
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Understanding a stockholder's voting rights |
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62 | (1) |
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Categorizing shares corporations can sell |
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63 | (1) |
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Considering the par value of common stock |
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64 | (1) |
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64 | (1) |
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65 | (1) |
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Sharing corporate profits through dividends |
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66 | (2) |
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Getting Preferential Treatment: Preferred Stock |
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68 | (3) |
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Considering characteristics of preferred stock |
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68 | (1) |
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Getting familiar with types of preferred stock |
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69 | (2) |
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71 | (2) |
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Opening national borders: ADRs |
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71 | (1) |
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Rights: The right to buy new shares at a discount |
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71 | (1) |
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Warrants: The right to buy stock at a fixed price |
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72 | (1) |
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Chapter 7 Debt Securities: Corporate and U.S. Government Loans |
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73 | (14) |
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Tackling Bond Terms, Types, and Traits |
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73 | (4) |
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Remembering bond terminology |
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73 | (2) |
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Following bond issue and maturity schedules |
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75 | (1) |
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Comparing secured and unsecured bonds |
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75 | (2) |
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Making Basic Bond Price and Yield Calculations |
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77 | (2) |
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77 | (2) |
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Determining the Best Investment: Comparing Bonds |
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79 | (3) |
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Considering bond credit ratings |
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79 | (2) |
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Contrasting callable and put bonds |
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81 | (1) |
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Popping the top on convertible bonds |
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82 | (1) |
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Exploring U.S. Government Securities |
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82 | (2) |
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Understanding the types and characteristics of U.S. government securities |
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82 | (2) |
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Playing It Safe: Short-Term Loans or Money Market Instruments |
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84 | (3) |
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Chapter 8 Municipal Bonds: Local Government Securities |
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87 | (18) |
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General Obligation Bonds: Backing Bonds with Taxes |
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87 | (2) |
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General characteristics of GOs |
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88 | (1) |
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88 | (1) |
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Dealing with Revenue Bonds: Raising Money for Utilities and Such |
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89 | (2) |
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General characteristics of revenue bonds |
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90 | (1) |
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90 | (1) |
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The Primary Market: Bringing New Municipal Bonds to Market |
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91 | (1) |
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92 | (1) |
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Definitions for new issues ' |
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92 | (1) |
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Examining Other Types of Municipal Bonds on the Test |
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92 | (2) |
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94 | (1) |
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Don't Forget Municipal Notes! |
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94 | (1) |
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Municipal Fund Securities |
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95 | (1) |
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95 | (1) |
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96 | (1) |
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Local Government Investment Pools |
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96 | (1) |
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Understanding the Taxes on Municipal Bonds |
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96 | (2) |
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Comparing municipal and corporate bonds equally |
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97 | (1) |
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Scot-free! Taking a look at triple tax-free municipal bonds |
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97 | (1) |
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Following Municipal Bond Rules |
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98 | (2) |
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98 | (1) |
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Advertising and record keeping |
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99 | (1) |
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99 | (1) |
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99 | (1) |
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Gathering Municipal Bond Info |
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100 | (1) |
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The bond resolution (indenture) |
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100 | (1) |
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100 | (1) |
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100 | (1) |
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"G" That's a Whole Lot of Rules |
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101 | (4) |
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PART 3 DELVING DEEPER: SECURITY INVESTMENTS WITH A TWIST |
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105 | (44) |
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Chapter 9 Delivering Diversification with Packaged Securities |
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107 | (14) |
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Diversifying through Management Investment Companies |
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108 | (7) |
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Comparing open- and closed-end funds |
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108 | (2) |
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Keeping your customer's investment objectives in mind |
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110 | (2) |
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112 | (2) |
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Figuring the sales charge and public offering price of open-end funds |
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114 | (1) |
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Considering Other Investment Company Options |
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115 | (2) |
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Face-amount certificate companies |
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116 | (1) |
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Unit investment trusts (UlTs) |
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116 | (1) |
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Exchange-traded products (ETPs) |
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116 | (1) |
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Investment company rules 17a-6 and 17a-7 |
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117 | (1) |
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Adding Annuities to a Portfolio |
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117 | (3) |
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Looking at fixed annuities |
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118 | (1) |
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Checking out variable annuities |
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118 | (1) |
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Putting money into (and receiving money from) annuities |
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118 | (2) |
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Exploring Variable Life and Variable Universal Life Insurance |
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120 | (1) |
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Chapter 10 Working with Direct Participation Programs and REITs |
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121 | (10) |
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Searching for Identity: What DPPs Are (and Aren't) |
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122 | (1) |
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The DPP Characters: General and Limited Partners |
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122 | (1) |
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Pushing through Partnership Paperwork |
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123 | (1) |
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123 | (1) |
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Certificate of limited partnership |
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124 | (1) |
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124 | (1) |
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Passive Income and Losses: Looking at Taxes on Partnerships |
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124 | (1) |
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Evaluating Direct Participation Programs |
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125 | (1) |
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Checking Out Types of Partnerships |
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125 | (3) |
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Building on real-estate partnership info |
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125 | (1) |
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Gearing up with equipment leasing |
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126 | (1) |
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Strengthening your grasp on oil and gas |
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127 | (1) |
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Reducing Real-Estate Risk with REITs |
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128 | (3) |
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Private (private placement) REITs |
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129 | (1) |
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Registered non-listed REITs |
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129 | (1) |
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129 | (2) |
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Chapter 11 Options: The Right to Buy or Sell at a Fixed Price |
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131 | (18) |
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Brushing Up on Option Basics |
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131 | (5) |
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132 | (1) |
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Looking at call options: The right to buy |
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133 | (1) |
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Checking out put options: The right to sell |
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133 | (1) |
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Getting your money back: Options in-, at-, or out-of-the-money |
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133 | (2) |
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Paying the premium: The cost of an option |
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135 | (1) |
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Incorporating Standard Option Math |
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136 | (8) |
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Calls same: Buying or selling call options |
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137 | (2) |
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Puts switch: Buying or selling put options |
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139 | (3) |
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Trading options: Opening and closing transactions |
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142 | (2) |
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Gaining Additional Option Info |
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144 | (5) |
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144 | (1) |
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That's ODD: Options risk disclosure document |
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144 | (1) |
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Getting the go-ahead: Registered options principal |
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144 | (1) |
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Options account agreement |
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144 | (1) |
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145 | (1) |
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Last trade, last exercise, and expiration of an option |
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145 | (1) |
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145 | (1) |
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146 | (1) |
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Some additional option rules |
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147 | (2) |
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PART 4 PLAYING NICELY: SERVING YOUR CUSTOMERS AND FOLLOWING THE RULES |
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149 | (76) |
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Chapter 12 Serving Your Customers: Customer Accounts |
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151 | (12) |
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Following Protocol When Opening Accounts |
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151 | (6) |
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Filing the facts on the new account form |
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151 | (3) |
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Selecting the appropriate type of account |
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154 | (2) |
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156 | (1) |
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157 | (1) |
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Getting Margin Paperwork Out of the Way |
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157 | (1) |
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Introducing Long and Short Margin Accounts |
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158 | (1) |
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Playing by the Federal Reserve Board's Rules |
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158 | (1) |
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158 | (1) |
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159 | (1) |
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Opening a Margin Account: The Initial Requirements |
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159 | (1) |
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160 | (1) |
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160 | (1) |
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Obeying the Telephone Act of 1991 |
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160 | (3) |
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Chapter 13 Doing a Little Market Research: Securities Analysis |
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163 | (14) |
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Knowing Your Securities and Markets: Securities Analysis |
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163 | (8) |
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164 | (1) |
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165 | (1) |
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Deciding what to buy: Fundamental analysis |
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166 | (2) |
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Deciding when to buy: Technical analysis |
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168 | (3) |
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Following the Green: Money Supply |
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171 | (2) |
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Influencing the money supply |
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171 | (1) |
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Opening the Federal Reserve Board's toolbox |
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172 | (1) |
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Reading Economic Indicators |
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173 | (2) |
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174 | (1) |
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Coincident (coincidental) indicators |
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174 | (1) |
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174 | (1) |
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175 | (1) |
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How Economic Factors Affect Securities |
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175 | (1) |
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175 | (1) |
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175 | (1) |
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175 | (1) |
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Principal Economic Theories |
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176 | (1) |
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176 | (1) |
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Supply side (Reaganomics) |
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176 | (1) |
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176 | (1) |
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Chapter 14 Going to Market: Orders and Trades |
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177 | (10) |
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Shopping at Primary and Secondary Markets |
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177 | (1) |
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Buying new in the primary market |
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177 | (1) |
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Buying used in the secondary market |
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178 | (1) |
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178 | (1) |
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Auctioning securities at securities exchanges |
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178 | (1) |
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Negotiating trades over-the-counter |
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179 | (1) |
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Understanding the Role of a Broker-Dealer |
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179 | (2) |
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180 | (1) |
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Clearing (carrying) broker |
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180 | (1) |
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180 | (1) |
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Receiving Orders from Customers |
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181 | (4) |
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Talking about order types |
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181 | (2) |
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Factoring in order features |
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183 | (2) |
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Looking at Market Participants |
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185 | (2) |
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Chapter 15 Making Sure the IRS Gets Its Share |
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187 | (10) |
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Everything in Its Place: Checking Out Tax and Income Categories |
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187 | (1) |
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Touring the tax categories |
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187 | (1) |
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Looking at types of income |
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188 | (1) |
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Noting Taxes on Investments |
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188 | (4) |
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188 | (1) |
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189 | (1) |
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At the sale: Capital gains and losses |
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190 | (2) |
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Exploring Retirement Plan Tax Advantages |
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192 | (5) |
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Qualified versus nonqualified plans |
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192 | (1) |
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IRA types and contribution limits |
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193 | (1) |
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194 | (3) |
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Chapter 16 No Fooling Around: Rules and Regulations |
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197 | (28) |
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The Market Watchdogs: Securities Regulatory Organizations |
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197 | (3) |
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The Securities and Exchange Commission |
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197 | (1) |
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Self-regulatory organizations |
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198 | (1) |
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Investor education and protection |
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199 | (1) |
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200 | (1) |
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Department of the Treasury/IRS |
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200 | (1) |
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FINRA Registration and Reporting Requirements |
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200 | (4) |
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201 | (1) |
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202 | (1) |
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202 | (1) |
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Resignation and termination |
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203 | (1) |
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Associated persons exempt from registration |
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203 | (1) |
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203 | (1) |
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Trading by the Book When the Account Is Open |
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204 | (11) |
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Filling out an order ticket |
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205 | (2) |
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Checking your calendar: Payment and settlement dates |
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207 | (1) |
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208 | (1) |
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208 | (1) |
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Financial exploitation of specified adults |
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209 | (1) |
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Borrowing from or lending to |
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210 | (1) |
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Following up with account statements |
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210 | (1) |
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Keeping your dividend dates straight |
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210 | (2) |
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212 | (1) |
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213 | (1) |
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214 | (1) |
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Committing Other Important Rules to Memory |
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215 | (6) |
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Sticking to the 5 percent markup policy |
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215 | (1) |
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216 | (2) |
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Following the money: Anti-money-laundering rules |
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218 | (2) |
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220 | (1) |
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220 | (1) |
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The Investor's Bankruptcy Shield: FDIC and SIPC |
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221 | (4) |
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Holding a customer's mail |
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222 | (1) |
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Business continuity plans and emergency contact information |
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222 | (3) |
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PART 5 PUTTING YOUR KNOWLEDGE TO GOOD USE: PRACTICE EXAMS |
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225 | (52) |
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Chapter 17 Bring It On: Practice Exam 1 |
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227 | (14) |
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Chapter 18 Answers & Explanations to Practice Exam 1 |
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241 | (10) |
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249 | (1) |
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Answer Key for Practice Exam 1 |
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250 | (1) |
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Chapter 19 Nothing But Net: Practice Exam 2 |
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251 | (14) |
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Chapter 20 Answers & Explanations to Practice Exam 2 |
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265 | (12) |
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274 | (1) |
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Answer Key for Practice Exam 2 |
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275 | (2) |
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277 | (10) |
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Chapter 21 Ten SIE Exam Traps to Avoid |
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279 | (4) |
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Easing Up on the Studying |
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279 | (1) |
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Assuming the Question's Intent |
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280 | (1) |
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Reading into the Question |
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280 | (1) |
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Becoming Distracted When Others Finish |
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280 | (1) |
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280 | (1) |
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281 | (1) |
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Trying to Work Out Equations in Your Head Instead of Writing Them Down |
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281 | (1) |
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Spending Too Much Time on One Question |
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281 | (1) |
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Changing Your Answers for the Wrong Reasons |
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281 | (1) |
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Calculating Your Final Score Prematurely |
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282 | (1) |
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Chapter 22 Ten Ways to Start Your Career Off Right |
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283 | (4) |
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|
283 | (1) |
|
|
|
284 | (1) |
|
|
|
284 | (1) |
|
Treat the Minnow like a Whale |
|
|
284 | (1) |
|
|
|
284 | (1) |
|
When a Security Falls, Don't Be a Stranger |
|
|
284 | (1) |
|
|
|
285 | (1) |
|
|
|
285 | (1) |
|
|
|
285 | (1) |
|
Set Some Goals: The Brass Ring |
|
|
286 | (1) |
| Index |
|
287 | |
