1 Flashcards
The DMM on an exchange floor works for the?
Member firm
after receiving a complaint for the Department of enforcement a respondent has how many days to respond?
25
what two systems were created as a result of the SEC’s mandate to FINRA to improve regulation of the Nasdaq stock market?
OATS and FQCS
OATS allows tracking of order from beginning to end
FQCS was designed to deal with member complaints regarding backing away
The ex-date for cash settlement transactions is 1 business day?
after record date
To function as a Nasdaq market maker, what two licenses are required?
series 55 and series 7 or 62
According to SEC rules 104, stabalizing bids may only be made for what type of offerings?
fixed price offerings underwritten on a firm commitment basis
The electronic delivery of a final prospectus applies to all of the following offerings except what? Mutual fund shares debt securities equity securities convertible debt securities
mutual fund shares. Investment companies are not permitted to use the access-equals-delivery method
FINRA rules prohibit analysts and members of their households from investing in a company’s securities for how many days before and after the analyst issues a research report on the company?
30 days before and 5 days after
an account may purchase a new equity issue If the beneficial interests of restricted persons do not exceed what percentage of an account.
10%
what are the functions of the DTC?
custody and safekeeping of securities and processing of interest and dividend payments
a member firm may trade alongside a retail customer limit order if the order is in what amounts?
10,000 shares or more and $100,000 or more
Form 13D is filed with who?
the market where the security pricipally trades, the SEC and the issuer
what is form 13D
when an unaffiliated investor accumulates a 5% or more interest in an issuer for 13D must be filed within 10 business days
the function of the book that allows part of a market maker’s interst to remain undisplayed is what?
reserve size - it allows a market maker to display part of its trading interest with the remainder undisplayed
a passive bid that is higher that the highest current independent id is what?
permitted if the bid reflects a customer limit order
In a regulation A offering, the SEC will integrate the current offering with any securities offering of the issuer occurring within the prior how many months?
12 the $5 million ceiling is measured over a 12 month period.
pegged orders
an order tracking the inside market and is therefore, a moving limit order to wither buy or sell
a report must be filed with FINCEN is the amount is suspicious or over an amount of what?
$5,000
Under SEC rule 3a4-1, an issuer may use its employees to help sell the issue as long as the employees are not what three things?
subject to a statutory disqualification, are not compensated based on sales and are not associated with any B/D
Under SEC rule 15c3-1, the minimum net capital requirement for a B/D that acts as a prime broker is?
$1,500,000
Rule 144 applies to the sales of securities by who?
control persons, affiliated persons and non-issuers
a senior officer of a membe firm must attest to FINRA that the firm is in complliance with the research analyst conflict of interest rules by what date each year?
April 1
to be diversified, an investment copmany what?
can have no more that 5% of its assets invested in any one issuer and can hold no more that 10% of the voting securities of any one issuer
Rule 144 allows a member to contact what potential buyers of Rule 144 stock?
a customer who has indicated an interest in the issue within the preceding 10 business days or a B/D who has indicated an interest in teh issue within the preceding 60 days
as long as the issuer is current with regard to its regulatory filings, a nonaffiliated investor, under Rule 144, may freely sell unregistered shares after a holding period of what?
6 months
a transaction in a TRACE-eligible bond is effected at 2:25 PM. the trade must be reported to FINRA when
by 2:40 pm - within 15 minutes
nondirected orders entered must be what?
market orders or marketable limit orders
regulation A requires notification to the SEC how many days before the initial offering>
20
regulation X covers what?
overseas entities to purchase US registered stock
Regualation SHO deals with
Short sales
The corporate financing department will review any compensations received by the underwriters during how many days preceding the filing?
180
if a member firm has fee-based accounts, its supervisory procedures shoudl include what?
periodic review of these accounts, review of any changes in the customer’s objectives and comparison of the fee charge to what would have been charged on a commission basis
securities with an ADTV of at least $100,000 and a public float value of at least $25 million are subject to a restricted period of how many days?
1 the business day before the effective date
under rule 103, application for acting as a passive market maker must be made when?
1 business day before the restricted period
A P modifier next to a market makers identifier indicates that the firm is what?
a primary market maker
the deposit of fully paid securities into a long margin account will not increase the what?
debit balance
