1 Flashcards
Qualified Distributions from ROTH IRAs are what in regards to taxes
tax free
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?
10 days
Under OTCBB rule, an exception to the firmness of quote rule is made for what?
Direct Participation Programs
Changes in stock ownership by insiders must be reported to the sec within what time frame?
Within 2 business days of the change
If no execution option is specified at the time of entry, NAsdaq book will assumes what
price/time
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
2 and 3
copies of SARs that have been filed with FinCEN must be kept by broker/dealers for how many years?
5
A fictional name or DBA may be used, provided the name is filed with whom?
FINRA and the SEC
settlement on wehn-, as-, and if-issued and wehn-, as-, and if-distributed transactions is usually determined by who?
FINRA’s uniform practice committee
The quotation system that shows quotes entered by both DMMs and third market makers is the what
Consolidated Quotation System CQS
In interdealer trades settled ex-clearing, paper confirmations must be sent no later than when?
T+1
what are the 5 main brokerage records that must be retained for 6 years?
blotters, general ledgers, customer ledgers, stock records and customer account records
what best describes a PIPE transaction
restricted securites once sold, are immediately registered for public resale
Purchase and sale of securities must be posted to a B/Ds blotter bo later than the what
business day following the trade date
SEC rules require that exception reports must be maintained for how long?
18 months
An escrow account may invest in what three things?
cash, a money market fund or any security guaranteed by the US government
A due diligence meetin occurs between whom?
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
The opening quote for issuers listed on the NYSE is set by the what?
DMM
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
a foreign B/D
Under SEC rules, the minimum net capital requiement for a firm operating under a k(2)(i) exemption is
$100,000.00
Under FINRA rules, confirmations for DVP trades must be delivered to customers when?
no later than T+1
Under SEC rules, a selling group is formed when?
after the filing of the registration statement
Repregistered representatives holding what three licenses may sell new issues of closed end funds?
6, 7 and 62
Series 52 representatives may only sell what?
municipal securities
Under SEC rule 606, how often are memeber firms required to make publicly available reports on their order routing methods?
quarterly
The LOI in a corporate underwriting is typically signed by which two parties?
issuer and the managaing underwriter
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?
60
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?
1 non-public arbitrator
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?
10
A member firm is exempt from the penny stock disclosure rules if its revenue from penny stock transactions is what?
5% or less of total revenue
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?
25
The Nasdaq book os open to what two things?
Nasdaq market makers and ECNs
A syndicate manage or co-manager may not publish a research report on the subject issuer for how many days following an IPO?
40 days for an IPO 10 for an additional issue offering
Under Regulation SHO, securites that have large open short positions at a registered clearing agency are termed?
threshold securities
