Author: SEC

Callable or redeemable bonds are bonds that can be redeemed or paid off by the issuer prior to the bonds’ maturity date. When an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments. Sometimes a… Continue reading CALLABLE OR REDEEMABLE BONDS

These give the issuing bank the right to terminate – or “call” – the CD after a set period of time, but they do not give the CD holder the same right. If interest rates fall, the issuing bank might call the CD.

Bonds that can be redeemed or paid off by the issuer prior to the bond’s maturity date.

Purchasing or owning shares of stock, with the expectation that the stock will rise in value.

A time when stock prices are rising and market sentiment is optimistic. Generally, a bull market occurs when there is a rise of 20% or more in a broad market index over at least a two-month period.

Generally, either you or your brokerage firm may close your brokerage account at any time.  The specific steps you will need to follow to close your account are usually found in the terms and conditions of your brokerage account agreement.  In addition, these terms and conditions generally specify when and how your brokerage firm may… Continue reading BROKERAGE ACCOUNT – CLOSING YOUR BROKERAGE ACCOUNT

Brokers generally request personal information from their customers, including financial and tax identification information, to comply with U.S. government laws and rules, as well as rules imposed by self-regulatory organizations (SROs).  Brokers request personal information from new customers as well as from customers who have had long-standing relationships with their firms. Here are some of… Continue reading BROKER-DEALERS: WHY THEY ASK FOR PERSONAL INFORMATION

Investors should always keep good records of their securities transactions, including copies of account statements, trade confirmations, and canceled checks. Although the federal securities laws require brokers to keep particular records for specified periods of time, your broker is not required to keep records indefinitely. You may have a difficult time obtaining copies of records from your… Continue reading BROKER-DEALERS: RECORD-KEEPING REQUIREMENTS

For certain routine matters to be voted upon at shareholder meetings, if you don’t vote by proxy or at the meeting in person, brokers may vote on your behalf at their discretion. These votes may also be called uninstructed or discretionary broker votes. There are stock exchange rules regarding which routine matters brokers may vote… Continue reading BROKER VOTE

An individual who acts as an intermediary between a buyer and seller, usually charging a commission to execute trades. Brokers are required to seek the best execution of trades they make for clients, and if they recommend investments to clients, those investments must be suitable for the client.