1 Flashcards
you are an officer of a member firm that deals exclusively in DPPs. You would like to purchase a new equity issue at the POP being underwritten by a major firm. Under FINRA rule 5130 are you allowed to purchase the issue?
you are permitted to buy the new issue without restriction because you are part of a limited B/D
what are the functions that can be perfomed by a general sales supervisor and what license is it?
Series 9/10 o permitted to oversee customer business only for the approval of new accounts, the endorsement of sales-related customer correspondence and the review of order tickets
what hsould be considered when creating a firm’s anti-money laundering traingin program?
type of business, size, customer base and available resources
When a clearing B/D clears customer accounts on a fully disclosed arrangment, customer statments and confirms are prepared by who?
the introducing B/D
what constitutes the deceptive practice know as “selling Dividends”
enticing customers to buy mutual fund shares just before the ex-dividend date
Blotters prepared by a B/D under SEC rule 17a-3 must contain entries reflecting what?
receipts and deliveries of securities, receipts and disbursements of cash, and purchases and sales of securities
under FINRA rule 5121, all customer checks received to purchase newly issued shares of a member firm must be what?
placed in an escrow account
Regulation M-A deals with what>
mergers, aquisitions and tender offers
under SEC rule 10b-13, a company that is the target of a tender offer must provide its shareholders with a statement indicating acceptance or rejection of the offer within how many business days of the announcement?
10
if a market maker receives a preferenced order and the firm is not at the inside market, Nasdaq will what?
return the order to the entering party
Under regulation SHO, if an introducing firm places a short sale order through its clearing firm, the responsibility to locate the securities rests with?
the introducing firm
In dominated and controlled trading markets, markup is computed based on what?
contemporaneous cost
if a single individual earns $250,000 a year can they open a Coverdell and can they open a 529?
the can NOT open a coverdell but they CAN open a 529
Memebers must maintain a record of a caller’s request not to receive further telemarketing calls and to honor that firm-specific, Do-Not-Call request for a period of
5 years
SEC rule 15c2-4 deals with
escrow of customer checks in contingent offerings
the account of a pattern day trader shows equity of $100,000. The minimum maintenance margin requirement for the account is $30,000. The buying power in the account is?
$280,000 (70,000 x 4)
under SEC rules, subsidiary ledgers must be retained for how long?
3 years
a call loan is characterized by what?
fluctuating interest
what are the three types of orders that may be entered into Nasdaq?
nondirected, preferenced, and directed.
unpreferenced is excluded
a pattern of currency deposits designed to avoid currency reporting requirements is termed what?
structuring
if a market maker receives a preferenced order and the firm is not at the inside market, Nasdaq will what?
return the order to the entering party
a registered rep in a branch office has been fined $5,000 for continually violating form procedures. A report of the event must be made to FINRA within how many business days?
10
Under SEC rules, 12b-1 fees may be used to cover what?
fees paid for marketing and selling fund shares
a report must be filed with FinCEN if the dollar amount of any suspicious activity is at least what amount?
$5,000
Under regulation D, Rule 504 offerings deal with a sale of securities not exceeding what amount?
1 million
a customer selects one member firm to provide for financing and custody of securities, while orders to buy or sell are placed with executing brokers. this is an example of what?
prime brokerage account
what is typically the largest component of a corporate underwriting spread is what?
concession. the manager’s fee is the smallest
Form 13D must be filed when?
45 calendar days after the end of each calendar year during which the position is held
under SEC rules, the minimum equity required for prime brokerage accounts is what?
500,000
what are specifically excluded from TRACE reporting?
debt of foreign countries, money market instruments and municipal bonds
what is not included in the credit agreement for a margin account
the stated rate of interest
FINRA rules rwquire member firms to review their surety bond coverage how often?
annually
under FINRA rules, maintenance calls on protfolio margin accounts must be met when?
within 3 business days
A form 144 filing is effective for how many days?
90
if a registered rep is given additional responsibilities requiring registration with FINRA as a principal, registration must be made within how many days?
90
Under the Investment company act of 1940, mutual funds must send financial statements to shareholders at least hwo often?
semiannually
what is the common factor for both traditional and ROTH IRAs?
the contribution limits are identical
Trades effected by Qualified institutional buyers in Rule 144A transactions that are otherwise ineligible for clearing through the NSCC are reported through what system?
ORF
settlement on wehn-, as-, and if-issued and when-, as-, and if distributed transactions is usually determined by?
FINRA’s uniform practice committee
a municipal unit investment trust is what two things?
closed-end and diversified
