Soft dollars are commission payments to a brokerage firm that are used, in part, to pay for other services such as research. Soft-dollar transactions are frequently criticized for lacking transparency and hiding abuses. Soft dollars are sometimes defended as providing access to a greater variety of research.
What can soft dollars be used for CFA?
Generally, a client’s investment assets are used to pay additional commissions — called “soft dollar credits” — that the broker/dealer sets aside as payment for legitimate research and expenses of the adviser.
Jun 13, 2019
What is a soft dollar account?
Soft dollars are a way for mutual funds to get services without having to pay for them directly. A hard dollar payment would require a check to be issued and recorded on MegaMutual’s books, and the corresponding expense to be passed onto investors via the fund’s annual fee.
Which of the following is not acceptable under a soft dollar relationship?
In a soft-dollar arrangement, which of the following is not acceptable? For a soft-dollar arrangement to be acceptable, the benefit being received by an adviser must benefit its clients. Since the adviser’s receipt of office supplies do not benefit its clients, it not an acceptable reason for directing business.
How are soft dollars generated?
Soft dollars are additional payments made by mutual fund managers and other money managers to any brokerage firm from the clients’ accounts to pay for the research offered by the firm. Such payments also cover the transaction charges incurred for executing trades.
Can you bring notes into CFA exam?
No other items are permitted, including:
Baggage of any kind, including transparent bags, backpacks, handbags, tote bags, briefcases, luggage, carrying cases, passport covers, or eyeglass cases. Study materials, including notes, papers, textbooks, or study guides. Calculator manuals.
Can you bring pen and paper to CFA?
The CFA Institute and Prometric provide a laminated sheet or whiteboard for you to use during the exam. You will not be allowed to bring your own writing utensils, eraser, or scratch paper into the exam room. You also cannot bring your calculator manual.
What are lazy dollars?
Lazy money is money that isn’t working; it isn’t making money or doing anything for except existing. Money markets and savings accounts are considered lazy money. A lot of people think they need liquidity for a rainy day.
May 16, 2019
Why do I need a dollar account?
Advantages of Opening a US Dollar Account in Nigeria
Nigerians must now receive international payments in US dollars, which means that money from abroad does not have to be converted into Nigerian Naira. With a US dollar bank account, remittances can sit indefinitely in the form of US dollars within Nigerian borders.
What is hard dollar and soft dollar savings?
Hard Savings are easily tangible benefits to your bottom line; increased revenue streams and reduced costs. Soft Savings are indirect savings where the company reduces risk and exposure to compliance and legal costs.
Is soft currency weak currency?
Definition: Soft currency is a currency which is hyper sensitive and fluctuates frequently. Such currencies react very sharply to the political or the economic situation of a country. Description: It is also known as weak currency due to its unstable nature.
What are hard dollars?
What Are Hard Dollars? Hard dollars are cash fees or payments made by an investor or customer to a brokerage firm in return for their services. Hard dollar payments are usually set amounts that are known before a customer begins dealing with a broker.
Is in soft currency?
SOFT CURRENCY
A term used in the foreign exchange market which denotes the currency thatis easily available in any economy in its forex market. For example, rupee isa soft currency in the Indian forex market. It is basically the opposite term forthe hard currency.
Can I use Casio calculator for CFA?
The CFA exam calculator policy allows only two calculator models for the exam: Texas Instruments (TI) BA II Plus (including BA II Plus Professional) Hewlett Packard (HP) 12C (including the HP 12C Platinum, 12C Platinum 25th anniversary edition, 12C 30th-anniversary edition, and HP 12C Prestige)
Jun 20, 2022
What is CSA soft dollar?
A Commission Sharing Agreement (CSA), or in the US named Client Commission Agreement (CCA), is a type of soft dollar arrangement that allows money managers to separately pay the executing broker for trade execution and ask that broker to allocate a portion of the commission directly to an independent research provider.
What is the best combination with CFA?
CFA and FRM: Best Way to Get Both Quickly
- the CFA designation opens up job prospects in the field of Research Analysis, Investment Banking and Portfolio Management,
- FRM on the other hand will open up opportunities in Banks, Treasury & Risk Management.
Sep 30, 2022
Can I use old books for CFA?
If you want to use the old books, just make sure the LOS is the same. It takes time to check if the LOS matches so just make sure if you want to spend that time checking, or shell out the $300 for CFAI books.
Feb 4, 2017
Does CFA degree expire?
CFA Program exam results do not expire, and you are not required to enroll each year. There is no limit to the amount of time you have to complete the CFA Program.
How many times can you fail the CFA exam?
Candidates will have a total of six maximum attempts per exam level.