1

Question 1

FINRA rules require that OATS reports be transmitted when?

Answer 1

Daily

Question 2

a fifth character by a market makers’ indentifier on a particular security indicates what?

Answer 2

that the market maker quotes in more than one trading location

Question 3

one of the representatives in your office has been fined $3,000 for continuing to violate firm procedures. Under FINRA rules, your firm is obligated to what?

Answer 3

notify FINRA within 10 business days

Question 4

According to SEC rule 17a-5, a trial balance must be prepared by B/D at least how often?

Answer 4

Monthly

Question 5

SEC Rule 15c3-3 k1 exemption of performing the weekly reserve computation applies to what?

Answer 5

applies to firms dealing exclusively in the sale of investment company securities

Question 6

SEC Rule 15c3-3 k2(i) exemption of performing the weekly reserve computation applies to what?

Answer 6

applies to firms that clear their business on a full disclosed basis. These firms have no margin accounts and all financial transactions with customers must be done through a special bank account

Question 7

SEC Rule 15c3-3 k2(ii) exemption of performing the weekly reserve computation applies to what?

Answer 7

introducing firms

Question 8

if a market maker’s bid or offer is decremented to zero, and the firm is not using automatic quote refresh, the firm must update its quote and size within how many seconds?

Answer 8

30

Question 9

if a full=service b/d has been found to have violated numerous MSRB rules, a fine will be assessed by whom and paid by whom?

Answer 9

FINRA and paid to FINRA

Question 10

what eight securities are eligible for inclusion on Nasdaq?

Answer 10

rights, warrants, connvertible debt, preferred stock, ADRs, ADSs, common stock and other equity securities

Question 11

Defined benefit plans

Answer 11

contributions may vary. Distributions are fixed

Question 12

in an active competitive market the prevailing market price for determining markup and markdown is what?

Answer 12

markup - lowest offer

markdown - highest bid

Question 13

if a member firm terminates its independent accounting firm, the SEC and the SRI must be notified when?

Answer 13

within 15 bus days of termination date

Question 14

under the sarbanes=oxley act of 2002, the officers signing the financial statements of a reporting company must certify that they have evaluated their internal controls with the previous how many days?

Answer 14

90 days

Question 15

describe a fidelity bond?

Answer 15

insurance bond that protects b/ds from losses due to theft or embezzlement by employees

Question 16

to terminate further 12b-1 fees, a find must have a majority vote of who?

Answer 16

shareholders and outside directors

Question 17

a pattern of currency deposits designed to avoid currency reporting requirements is termed what?

Answer 17

structuring

Question 18

under SEC rules, subsidiary ledgers must be retained for how long?

Answer 18

3 years

Question 19

ACES is a service that allows order entry forms to access what?

Answer 19

a market maker’s internal trading system for order placement and execution

Question 20

If a securities B/D registerd with FINRA wishes to merge with another member, FINRA must be notified when?

Answer 20

at least 30 days prior to the closing date

Question 21

Under Regulation A, when must a B/D furnish an offering circular to purchasers?

Answer 21

48 hours before the confirmation

Question 22

under Nasdaq trading rules, market-on-close orders can NOT be entered after what time?

Answer 22

3:50 pm

Question 23

Under Hart-Scott-Rodino, the waiting period, after filing premerger notification information with the FTC, is?

Answer 23

30 days

Question 24

If a market maker’s bid or offer is decremented to zero, and the firm is not using Automatic Quote Refresh, the firm must update its quote and size within how many seconds?

Answer 24

30

Question 25

under the USA patriot Act, firms must make records relating to wire transfers of how much?

Answer 25

$3,000 or more

Question 26

rule 144 applies to the sale of securities by all of the following except?
issuers, nonissuers, control persons or affiliated persons

Answer 26

issuers

Question 27

Under FINRA rules, the account name or number must be on an order ticket before what?

Answer 27

order execution

Question 28

the record keeping and reporting requirement of the Bank Secrecy Act are an attempt to do what two things?

Answer 28

deter money laundering and overcome foreign bank secrecy laws

Question 29

the trading system that allows market makers to electronically negotiate trades with other market makers is?

Answer 29

Nasdaq

Question 30

a qualified distribution from a Roth IRA is one made after what?

Answer 30

age 59 and a half and an 5 year holding period

Question 31

the winning bid in a competitive offering is the one that provides the issuer with the?

Answer 31

lowest net or true interest cost

Question 32

regarding reporting, TRACE requires what?

Answer 32

dual side reporting (both the buyer and seller)

Question 33

trades effected by qualified institutional buyers (QIBs) in Rule 144A transactions that are otherwise ineligible for clearing through the NSCC are reported through which system?

Answer 33

ORF no later than 8 pm ET

Question 34

if a member firm wishes to have a clearly erroneous trade reviewed, it must notify who?

Answer 34

Nasdaq Market Opertions

Question 35

OATS rule apply to

Answer 35

Securities listed on the Nasdaq stock market