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Current yield: Annual interest / market price
Example: A 5% bond ($50/year) priced at $1,000 x 0.92 = $920: current yield = 50 / 920 = 5.43%. Price below par, so current yield is above the coupon.
Bond price vs. yield: Price and yield move in opposite directions
Example: Rates rise, existing bond prices fall. A discount bond has YTM > current yield > coupon; a premium bond is the reverse.
Mutual fund sales charge %: (POP - NAV) / POP
Example: NAV $19.00, POP $20.00: sales charge = 1.00 / 20.00 = 5% (always divide by the offering price).
Stock split: New shares = old x ratio; new price = old / ratio
Example: 100 shares at $60 with a 3-for-2 split: 150 shares at $40. Total value unchanged at $6,000.
Long call breakeven: Strike + premium
Example: Buy 1 XYZ 50 call for $3: breakeven $53; max loss $300 (premium x 100 shares).
| Item | Number / rule | Source |
|---|---|---|
| Settlement, regular way | T+1 for most securities (since May 28, 2024) | SEC - Shortening the securities settlement cycle to T+1 (compliance date May 28, 2024) |
| Currency Transaction Report | Cash over $10,000 in a day | FinCEN - Currency Transaction Report rule (31 CFR 1010.311) |
| Broker-dealer SAR threshold | $5,000 in suspicious activity | FinCEN - SAR rule for broker-dealers (31 CFR 1023.320) |
| SIPC protection | Up to $500,000 per customer, including a $250,000 limit for cash | SIPC - What SIPC Protects |
| Reg T initial margin | 50% of purchase price | Federal Reserve Regulation T (12 CFR Part 220) |
| FINRA minimum margin equity | $2,000 to open (FINRA Rule 4210) | FINRA Rule 4210 - Margin Requirements |
| Rule 144 holding period | 6 months (reporting issuer) or 1 year (non-reporting) for restricted stock | SEC Rule 144 (17 CFR 230.144) |
| Accredited investor (natural person) | $200,000 income ($300,000 joint) in each of the last 2 years, or $1 million net worth excluding primary residence | SEC Rule 501 - Accredited investor definition (17 CFR 230.501) |
| FINRA gift limit | $300 per person per year (raised from $100, effective March 30, 2026) | FINRA Regulatory Notice 26-05 - Gifts Rule amendments ($300 limit, effective March 30, 2026) |
| 2026 IRA contribution limit | $7,500 ($1,100 catch-up at 50+) | IRS - 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 |
| SIE validity | 4 years from passing | FINRA - SIE Exam and Exam Restructuring FAQ |
Verified 2026-09-23. Rules change; confirm on FINRA/NASAA before your exam. Study aid only; no reference materials are allowed in the test. FINRA and NASAA do not endorse SeriesPrepKit.
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