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Question 1

Qualified Distributions from ROTH IRAs are what in regards to taxes

Answer 1

tax free

Question 2

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 an officer or director of that issuer?

Answer 2

10 days

Question 3

Under OTCBB rule, an exception to the firmness of quote rule is made for what?

Answer 3

Direct Participation Programs

Question 4

Changes in stock ownership by insiders must be reported to the sec within what time frame?

Answer 4

Within 2 business days of the change

Question 5

If no execution option is specified at the time of entry, NAsdaq book will assumes what

Answer 5

price/time

Question 6

which of the following statements regarding a member’s use of ivestment analysis tools are TRUE?

1) the tool must be filed with FINRA at least 10 days prior to use
2) the tool must be filed with FINRA at least 10 days after first use
3) a member must provide users with a description of the criteria and methodology used
4) a member is not required to provide users with a description of the criteria and methodology used

Answer 6

2 and 3

Question 7

copies of SARs that have been filed with FinCEN must be kept by broker/dealers for how many years?

Answer 7

5

Question 8

A fictional name or DBA may be used, provided the name is filed with whom?

Answer 8

FINRA and the SEC

Question 9

settlement on wehn-, as-, and if-issued and wehn-, as-, and if-distributed transactions is usually determined by who?

Answer 9

FINRA’s uniform practice committee

Question 10

The quotation system that shows quotes entered by both DMMs and third market makers is the what

Answer 10

Consolidated Quotation System CQS

Question 11

In interdealer trades settled ex-clearing, paper confirmations must be sent no later than when?

Answer 11

T+1

Question 12

what are the 5 main brokerage records that must be retained for 6 years?

Answer 12

blotters, general ledgers, customer ledgers, stock records and customer account records

Question 13

what best describes a PIPE transaction

Answer 13

restricted securites once sold, are immediately registered for public resale

Question 14

Purchase and sale of securities must be posted to a B/Ds blotter bo later than the what

Answer 14

business day following the trade date

Question 15

SEC rules require that exception reports must be maintained for how long?

Answer 15

18 months

Question 16

An escrow account may invest in what three things?

Answer 16

cash, a money market fund or any security guaranteed by the US government

Question 17

A due diligence meetin occurs between whom?

Answer 17

the issuing corporation and the underwirters to review and reexamine the full details of the pending underwriting and negotiate final terms to be included in the formal underwriting contract

Question 18

The opening quote for issuers listed on the NYSE is set by the what?

Answer 18

DMM

Question 19

Under SEC rules, all of the following could be considered good control locations for the safekeeping of customer securites EXCEPT

1) a foreign B/D
2) a foreign custodian bank
3) a foreign depository
4) a foreign clearing agency

Answer 19

a foreign B/D

Question 20

Under SEC rules, the minimum net capital requiement for a firm operating under a k(2)(i) exemption is

Answer 20

$100,000.00

Question 21

Under FINRA rules, confirmations for DVP trades must be delivered to customers when?

Answer 21

no later than T+1

Question 22

Under SEC rules, a selling group is formed when?

Answer 22

after the filing of the registration statement

Question 23

Repregistered representatives holding what three licenses may sell new issues of closed end funds?

Answer 23

6, 7 and 62

Question 24

Series 52 representatives may only sell what?

Answer 24

municipal securities

Question 25

Under SEC rule 606, how often are memeber firms required to make publicly available reports on their order routing methods?

Answer 25

quarterly

Question 26

The LOI in a corporate underwriting is typically signed by which two parties?

Answer 26

issuer and the managaing underwriter

Question 27

If a member firm is notified by FINRA that it must begin tape-recording the phone calls of its registered reps, it must do so within how many days of notification?

Answer 27

60

Question 28

Simplified arbitration between a mamber and an associated person where bothparties agree to this procedure is decided by how many and what type of arbitrator?

Answer 28

1 non-public arbitrator

Question 29

a client of your firm requests a copy of the predispute arbitration agreement signed when the account was opened several years ago. Under FINRA rules, your firm must respond within how many business days of the request?

Answer 29

10

Question 30

A member firm is exempt from the penny stock disclosure rules if its revenue from penny stock transactions is what?

Answer 30

5% or less of total revenue

Question 31

If a member wishes to appeal an adverse decision in a Code of Procedure hearing, the member first must appeal to the National Adjudicatory Council within how many days of the decision date?

Answer 31

25

Question 32

The Nasdaq book os open to what two things?

Answer 32

Nasdaq market makers and ECNs

Question 33

A syndicate manage or co-manager may not publish a research report on the subject issuer for how many days following an IPO?

Answer 33

40 days for an IPO 10 for an additional issue offering

Question 34

Under Regulation SHO, securites that have large open short positions at a registered clearing agency are termed?

Answer 34

threshold securities