1 Flashcards
FINRA must receive short interest reports on Nasdaq-listed securities from members no later than what day and time?
6:00 pm on the second day after each reporting settlement date
The SEC defines a research report as a client communication that analyzes individual securities distributed to at least how man person?
15
The stated rate of interest is contained in the customer credit agreements signed whn opening margin accounts…true or false
false
A fictional name or DBA may be used, provided tge name is filed with which two agencies?
FINRA and SEC
What may a member firm or a natural person be fined in found to have engaged in insider trading?
Firm - 25 million
Natural person - 5 million and 20 years in prison
A registered rep meets with certain clients, by appointment, at a local library twice a month. This is an example of a(n):
office of convenience
For a member firm going public, can employees of the member purchase shares at the offering price? can the member negotiate repurchase agreements with customers who purchase the shares?
Employees CAN purchase shares. Repurchase agreements are never permitted with respect to nonexempt securities
Which of the following exemption provision of the Act of 1933 may NOT be used for an initial offering of securities:
Rule 147, Regulation A, Regulation D or Rule 144
Rule 144. It does not pertain to primary offerings, it affect secondary market transactions in restricted or control securities
The mandatory closeout of short sales not resulting in delivery applies to what?
Threshold securities, which are defined as equity securities that hae a clearing short position of 10,000 shares or more and are equal to at least .5% of the issuer’s total shares outstanding.
The limit order protection rule is in effect during when?
normal business hours and extended trading hours. (9:30 am and 6:30 pm
Which of the following terms does NOT apply to ACT?
trade execution, trade reporting, trade review and trade comparison
trade execution. ACT is not an execution system
Under the Hart-Scott Rodino Act, a report must be filed with the FTC if the value of the proposed acquistion or merger exceeds what?
68.2 million
The trade Reporting Facility (TRF) reprorts trades in what?
Nasdaq stocks and NYSE-listed stocks traded in the third market
Under the provisions of Rule 144, what is the minimum holding period for the sale of control stock aquired through an open-market purchase?
No holding period required. The seller is an affiliate and the stick is registered so the sale is subject to colume restrictions no there is no holding period.
A Nasdaq stock closes at 15.00 and goes ex-dividend the following morning for a $.045 cash dividend. The opening price will be what?
14.95 - if the dividend is nto a whole number you round up
Suspicious activity report (SAR) filing is required for suspicious transactions involving at least what amount?
$5,000.00
In an arbitration between a firm and one of its representatives where the amount in dispute exceeds $100,000, the arbitration panel will consist of …
2 public arbitrators and one nonpublic arbitrator
Under FINRA rules, a firm with at least 20 registered persons will be subject to the taping rule if at least what percentage of its registered person have been employed by disciplined firms within the past three years?
20%
Temporary subordinated loans must be filed when and what may not be prepaid under what circumstance?
they must be filed with FINRA at least 10 days before use and may not be prepaid if such prepayment would cause the firm’s AI to NC ration exceed 10:1
What documents are required when a customer dies, to release the decendant;s assets?
a certified copy of the death certificate - aways. An affidavit of domicile and an inheritance tax waiver MAY be required
Under tje customer protection rule, unresolved shourt securities differences must be brought in how many days after discovery?
45 days
A syndicate manager or co-manager may NOT publish a research report on the subject issuer for how many days following an IPO?
40 days - Rule 2711 imposes a quiet period of 40 calendar days for IPOs and 10 days for additional issue offerings.
If the market value of securities underlying a secured demand note should decline sharply, FINRA must be notified when?
immediately
An escrow account may invest in what three things?
cash, a money market fund, or any security guaranteed by the US government
Form 3, attesting to the ownership of the common stock of an issuer, must be filed with the SEC within how many days of becoming and officer or director of that issue?
10 days
The maximum amount of securities that may be sold by an insider within a 3-month period under rule 144 is what?
1% of the shares outstanding ot the average weekly volume of trading in the previous 4 weeks, whichever is greater
At maturity, equity linked notes convert to what?
cash
Under NYSE rule 127, a block of stock is defined as a quantity of stock having a market value of what?
$200,000 or more
The ex-date for a closed-end fund listed for trading on the NYSE is set by the…
NYSE
Short positions in Nasdaq securities must be reported to FINRA when?
twice a month
Under SEC rules, the ABC growth Fund must have at least what percentage of its portfoli invested in growth Stocks?
80%
To register with the SEC on Form N-1A, an investment company needs to have capital of what?
$100,000
A customer of an introducing firm, in reviewing his monthly statement, notices an error in the number of shares of XYZ he recently purchased. under FINRA rules, the customer should notify who?
both his firm and the clearing firm
If a members fidelity bond is modified, FINRA must be notified when?
within 10 business days
