Investment Terms and Concepts

Option Terms – Fort Lauderdale, Florida Broker Misconduct and Negligence FINRA Arbitration and Litigation Lawyer

Published on: June 28, 2012 | By Russell L. Forkey, P.A.

Certain Option Terms:

There are varied terms and concepts that relate to option activity. Here are a few. However, please keep in mind that the purpose of this post is to provide the reader with general information concerning just a few of them. Thus, the purpose of this post is to provide the reader with general educational information concerning the below described terms and concepts. Therefore remember that the information provided herein is not designed to be complete in all material respects and does not identify all option related terms that apply to option activity. Consequently, if you have any questions concerning its content, you should contact a qualified professional.

Option Account: An option account is a special account that is established at a brokerage firm that allows the account owner to trade options in his or her account. Since some option strategies require the use of margin, most “standard” option agreements require the owner of the account to establish a margin account with the firm.

Active Brokerage Account / Broker – Dealer Mismanagement South Florida FINRA Arbitration Attorney

Published on: June 27, 2012 | By Russell L. Forkey, P.A.

Active Brokerage Accounts. When should you be worried?

The phrase “active” brokerage account carries varied visions with it in the mind of the account holder. What constitutes an active account to one investor, which is what he or she has asked for, may be an abusive use of control, by an account executive, of another. Thus, the purpose of this post is to provide the reader with some general educational information concerning this issue. Please keep in mind that the information provided herein is not designed to be complete in all material respects. Consequently, if you have any questions concerning its content, you should contact a qualified professional.

The issue of control and the type of damages that relate to active accounts which culminate in broker/dealer mismanagement and a claim of churning is discussed in another part of our website and can be reached by following this link: http://www.forkeylaw.com/Securities-Commodities-and-Precious-Metals-Terms/Churning-Activity.shtml

Accidental Death Benefit – South Florida Insurance Fraud and Misrepresentation Attorney

Published on: June 24, 2012 | By Russell L. Forkey, P.A.

Accidental Death Benefit:

This post is designed to provide the reader with general educational information concerning an accidental death policy or benefit. Please keep in mind that this information is being provided for informational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post or its contents, you should seek the assistance of a qualified professional.

There are basically two types of accidental death benefits that can be paid to policy beneficiaries upon the accidental death of an insured. The first flows simply from the fact that the insured under an “accidental death” policy dies in an accident. This type of policy is different from a general life insurance policy. The second arises when the policy owner purchases, as an add-on, to his or her life insurance policy, an accidental rider, which usually contains a double or triple indemnity provision, which pays twice or three times the face amount of the life policy to the beneficiary.

Penny Stock Fraud and Misrepresentation South Florida FINRA Arbitration and Litigation Attorney

Published on: June 23, 2012 | By Russell L. Forkey, P.A.

Penny Stocks:

This post is designed to provide the reader with general educational information concerning various characteristics associated with “penny stocks.” Please keep in mind that this information is being provided for informational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post or its contents, you should seek the assistance of a qualified professional.

A penny stock is defined by the Securities and Exchange Commission (SEC) as a security that is selling for less than $5 per share and was not listed or authorized for quotation on a NASDAQ market exchange. Penny stocks are issued by start up companies or companies with a short or violative revenue or earning history. Because of the risk associated with this classification of security, many brokerage firms have special precautionary rules about trading in these stocks and the SEC requires that brokerage firms implement suitability rules and require that the firm obtain written consent from investors authorizing such transactions.

Types of Advanced Refunding – Boca Raton, Florida Fraud and Misrepresentation FINRA Arbitration

Published on: June 23, 2012 | By Russell L. Forkey, P.A.

What is an “Advance Refunding?”

This post is designed to provide the reader with general information concerning what an “advanced refunding is” and what it accomplishes. Please keep in mind that this information is being provided for informational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post or its contents, you should seek the assistence of a qualified professional.

There are basically two types of advance refundings. One relates to government securities. The other relates to municipal bonds.

Advance – Decline Ratio West Palm Beach, Florida FINRA Arbitration Attorney

Published on: June 23, 2012 | By Russell L. Forkey, P.A.

What is the Advance – Decline Ratio?

This post is designed to provide the reader with general information concerning what the “advance – decline” is. Please keep in mind that this information is being provided for informational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post or its contents, you should seek a qualified professional.

The advance – decline ratio is a measurement of the number of stocks that have advanced and the number of stocks that have declined over a particular period of time. It is the ratio of one to the other and it shows the general direction of the stock market. The measurement is considered “bullish” if more stocks advance than decline on any trading day. The ratio is “bearish” if declines outnumber advances. How steep the ratio is reflects whether a strong bull or bear market is underway.

Adjustable Rate Preferred Stock – Boca Raton, Florida Securities Fraud and Mismanagement Attorney

Published on: June 23, 2012 | By Russell L. Forkey, P.A.

Adjustable Rate Preferred Stock:

This post is designed to provide the reader with general information concerning what an adjustable rate preferred stock is. Please keep in mind that this information is being provided for informational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post or its contents, you should seek a qualified professional.

An “adjustable rate” preferred stock) (also called variable rate or floating rate preferreds) is a preferred stock whose dividend is adjusted, usually quarterly, as opposed to paying a fixed return, based on changes in the Treasury bill rate or other identified money market rate. The market prices of adjustable rate preferreds are usually less volatile than fixed rate preferreds.

Tax-Exempt Security – Boca Raton, Florida Investment Fraud Attorney

Published on: June 23, 2012 | By Russell L. Forkey, P.A.

Tax-Exempt Security:

This post is designed to provide the reader with general information concerning what constitutes a tax-exempt security and how it is treated for tax purposes. Please keep in mind that this information is being provided for informational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post or its contents, you should seek a qualified professional.

A tax exempt security is an investment vehicle whose interest is exempt from taxation by federal, state, and/or local authorities. It is generally referred to as a municipal bond regardless of whether it was issued by a state government or agency or by a county, town or other political district. The “bond” is backed by the full faith and credit or the issuer or by anticipated revenues of the issuing authority. Interest income earned from the tax-exempt security is free from federal income taxation as well as from taxation in the jurisdiction where the bond has been issued.

Tax Shelter – South Florida Attorney

Published on: June 23, 2012 | By Russell L. Forkey, P.A.

What is a “tax shelter” and what is an “abusive” tax shelter?

This post is designed to provide the reader with general information concerning tax shelters as a concept and what constitutes an abusive tax shelter. Please keep in mind that this information is being provided for informational purposes only and is not designed to be complete in all material respects. Thus, it should not be relied upon as providing legal or investment advice. If you have any questions concerning this post or its contents, you should seek a qualified professional.

Tax Shelter:

Chills and Freezes

Published on: June 10, 2012 | By Russell L. Forkey, P.A.

What are “chills and “freezes”?

June, 2012:

In our continued effort to educate the investing public about various aspects of the securities markets, we are providing the below information. Because this information is being provided for educational purposes only, it should not be relied upon as providing legal or investment advice. Moreover, it is not intended to be complete in all material respects. If you have any questions concerning the information set forth below, you should contact a qualified professional.