Securities: Products, Processes, and The Regulatory Environment
25 Questions
A. Products (P)
- Trusts
a. Personal
b. Corporate
c. Employee Benefits
d. Transfer/Registrar
- Annuities
a. Fixed
b. Variable
c. Real Estate
- Derivatives
a. Swaps
b. Options
c. Other Components (e.g., Structured, Credit, Interest, Futures, Forwards)
- Stocks
a. Common
b. Preferred
c. Warrants
d. Debt Securities
e. Options
- Bonds
a. Convertible
b. Straight
- Commodities
- Mutual Funds
a. Income
b. Stock
c. Growth
d. Balanced Funds
e. Specialized Funds
- Capital Market Products
a. Real Estate Investment Trust
b. Repurchase Agreements
- Securities Lending
- Asset Management (e.g., supervision of fund managers' portfolios and valuations)
- Money Market Products
B. Processes (P)
- Risk Management
a. Trading Market Risk
b. Asset/Liability Management
c. Reserves
- Underwriting
a. Securities
b. Initial Public Offerings
- Securitizations
- Treasury Operations
- Back-office Operations
- Marketing Sales and Distribution (e.g., Brokers)
- Investments
- Broker/Dealer Activities
- Mergers and Acquisitions
C. The Regulatory Environment (P)
- Overview (e.g., Function of Securities Regulators)
- Laws and Regulations
a. Reserve Requirements
b. Insider Transactions
c. Self-assessment of Internal Controls/Risk Management
d. Investor Protection
e. Financial and Personal Information Privacy
f. Antimoney Laundering
- Financial Markets
a. Overview
1. Brokers and Dealers
2. Types of orders
3. New issues
4. Clearing and settlement proces
b. Stock Exchange
c. Over-the-Counter (OTC) Market
d. Future and Options Markets
4. Money and Banking
a. Theories on the Effect of Interest Rate Movements
b. Monetary Management Theories
P=Candidates must exhibit proficiency (thorough understanding; ability to apply concepts) in these topic areas.
A=Candidates must exhibit awareness (knowledge of terminology and fundamentals) in these topic areas.
