Which of the following securities trade flat
Flat, in the securities market, is a price that is neither rising nor declining. Under fixed income terminology, a bond that is trading without accrued interest is said to be flat. In forex, flat refers to the condition of being neither long nor short in a particular currency, and is also referred to as 'being square.’. Preferred stock always "trades flat," as do bonds on which interest is in default or is in doubt. In general, trade in and out of a position at the same price, neither making a profit nor taking a Which of the following trade "flat" ? treasury bills, treasury strips, and treasury receipts U.S. Treasury securities are generally considered to be immune to all of the following risks EXCEPT: All of the following trade flat EXCEPT: A) T-bills. B) bankers' acceptances. C) commercial paper. D) negotiable CDs. Answer: D. While most money-market securities are zeroes and trade flat, negotiable CDs do trade with accrued interest. Primary Dealers in US Gov't securities are selected by: A) Financial Industry Regulatory Authority (FINRA) Which of the following regarding US Government agency obligations are TRUE? I. They are direct obligations of the US Government. II. They generally have higher yields than direct US obligations. III. The Federal National Mortgage Association is a publicly traded corporation. Iv. Securities issued by GNMA trade on the NYSE floor. A. Iand II B. I and III As a result, these bonds normally trade flat, without accrued interest. Therefore, they are not suitable for customers seeking income. All of the following have been recognized by the SEC under the Credit Rating Agency Reform Act as being registered with the commission to rate debt instruments. All of the following statements are true regarding repurchase or reverse repurchase agreements EXCEPT: A. under a reverse repurchase agreement, the dealer is buying securities from the Federal Reserve B. if a repurchase agreement extends for longer than overnight, the agreement is known as a "Due Bill" repurchase agreement
Agency Security: Low-risk debt obligations that are issued by U.S. government-sponsored entities (GSEs) and other federally related bodies. Agency securities are issued by GSEs, including the
Which of the following regarding US Government agency obligations are TRUE? I. They are direct obligations of the US Government. II. They generally have higher yields than direct US obligations. III. The Federal National Mortgage Association is a publicly traded corporation. Iv. Securities issued by GNMA trade on the NYSE floor. A. Iand II B. I and III As a result, these bonds normally trade flat, without accrued interest. Therefore, they are not suitable for customers seeking income. All of the following have been recognized by the SEC under the Credit Rating Agency Reform Act as being registered with the commission to rate debt instruments. All of the following statements are true regarding repurchase or reverse repurchase agreements EXCEPT: A. under a reverse repurchase agreement, the dealer is buying securities from the Federal Reserve B. if a repurchase agreement extends for longer than overnight, the agreement is known as a "Due Bill" repurchase agreement Fannie Mae debt securities are negotiable. Ginnie Mae issues are directly backed by the U.S. Government. Freddie MAC- issuing mortgage backed pass through certificates is (are) restricted to purchasing conventional mortgages that are not VA or FHA insured. Which of the following is a derivative product.
Which of the following regarding US Government agency obligations are TRUE? I. They are direct obligations of the US Government. II. They generally have higher yields than direct US obligations. III. The Federal National Mortgage Association is a publicly traded corporation. Iv. Securities issued by GNMA trade on the NYSE floor. A. Iand II B. I and III
Fannie Mae debt securities are negotiable. Ginnie Mae issues are directly backed by the U.S. Government. Freddie MAC- issuing mortgage backed pass through certificates is (are) restricted to purchasing conventional mortgages that are not VA or FHA insured. Which of the following is a derivative product. Flat, in the securities market, is a price that is neither rising nor declining. Under fixed income terminology, a bond that is trading without accrued interest is said to be flat. Trade flat For convertibles, trade without accrued interest. Preferred stock always "trades flat," as do bonds on which interest is in default or is in doubt. In general, trade in and out of a position at the same price, neither making a profit nor taking a loss. Trade Flat 1. In stocks, to trade without a change in price. That is, one trades flat when All of the following bonds trade "flat" EXCEPT: A. defaulted bonds B. zero coupon bonds C. market discount bonds D. adjustment (income) bonds Due to the great trading activity, dealers trade the securities at very narrow spreads, quoting them in 32nds (as opposed to corporate securities that are quoted in 1/8ths). 64 Flat trades A bond in default trades flat; that is, the price quoted covers both principal and unpaid accrued interest. Any security that trades without accrued interest or at a price that includes accrued interest is said to trade flat. Flat Trades 1. Securities that do not trade with accrued interest included in the price. For example, most American
The best answer is A. An overlapping debt is a GENERAL obligation of a municipal issuer that is the responsibility of other municipal units. An example would be a school district bond issue covering a number of townships - the property tax collections of all 3 towns would be used to service the school district debt.
Which of the following regarding US Government agency obligations are TRUE? I. They are direct obligations of the US Government. II. They generally have higher yields than direct US obligations. III. The Federal National Mortgage Association is a publicly traded corporation. Iv. Securities issued by GNMA trade on the NYSE floor. A. Iand II B. I and III As a result, these bonds normally trade flat, without accrued interest. Therefore, they are not suitable for customers seeking income. All of the following have been recognized by the SEC under the Credit Rating Agency Reform Act as being registered with the commission to rate debt instruments. All of the following statements are true regarding repurchase or reverse repurchase agreements EXCEPT: A. under a reverse repurchase agreement, the dealer is buying securities from the Federal Reserve B. if a repurchase agreement extends for longer than overnight, the agreement is known as a "Due Bill" repurchase agreement Fannie Mae debt securities are negotiable. Ginnie Mae issues are directly backed by the U.S. Government. Freddie MAC- issuing mortgage backed pass through certificates is (are) restricted to purchasing conventional mortgages that are not VA or FHA insured. Which of the following is a derivative product.
Unlike U.S. Governments, on which accrued interest is computed on an actual day month/actual day year basis, Agency securities' accrued interest is computed on a 30 day month/360 day year basis. U.S. Government and Agency securities never trade flat (meaning without accrued interest), since a default is almost impossible.
Which of the following trade "flat" ? treasury bills, treasury strips, and treasury receipts U.S. Treasury securities are generally considered to be immune to all of the following risks EXCEPT: All of the following trade flat EXCEPT: A) T-bills. B) bankers' acceptances. C) commercial paper. D) negotiable CDs. Answer: D. While most money-market securities are zeroes and trade flat, negotiable CDs do trade with accrued interest. Primary Dealers in US Gov't securities are selected by: A) Financial Industry Regulatory Authority (FINRA) Which of the following regarding US Government agency obligations are TRUE? I. They are direct obligations of the US Government. II. They generally have higher yields than direct US obligations. III. The Federal National Mortgage Association is a publicly traded corporation. Iv. Securities issued by GNMA trade on the NYSE floor. A. Iand II B. I and III As a result, these bonds normally trade flat, without accrued interest. Therefore, they are not suitable for customers seeking income. All of the following have been recognized by the SEC under the Credit Rating Agency Reform Act as being registered with the commission to rate debt instruments. All of the following statements are true regarding repurchase or reverse repurchase agreements EXCEPT: A. under a reverse repurchase agreement, the dealer is buying securities from the Federal Reserve B. if a repurchase agreement extends for longer than overnight, the agreement is known as a "Due Bill" repurchase agreement
Preferred stock always "trades flat," as do bonds on which interest is in default or is in doubt. In general, trade in and out of a position at the same price, neither making a profit nor taking a