1 Flashcards
a cross guarantee
when a customer’s margin account is guaranteed by another customer of the B/D carrying the account
Form 144 must be filed with the SEC when?
concurrently with the sale or earlier
The term offering at the market refers to a distribution in which the price to the public on the offering date is set how often?
more than once during the day
focus IIA reprots must be filed how oftern?
quarterly - within 17 business days of the quarter end
Nasdaq allows market participante to execute how?
against displayed size and reserve size
the function of the book that allows part of a market maker’s interest to remain undisplayed is what?
reserve size
a customer, after purchasing $12,000 of stock in a margin account, deposits $8,000 and borrows the balance from the B/D. Under SEC rule 15c2-1, the B/D using customer securities as collateral, may borrow up to a mazimum of what?
$4,000 - they can never borrow more than they loaned the customer
Under FINRA rules, clearing firms must provide their correspondent introducing firms with a list of their exception reports available for their use by what date?
July 31 of each year
under SEC rule 15c3-3, a member firm wishes to change its exemptive status from k(1) to k(2)(ii). Under SEC rules, the requrest must be directed to who?
member’s designated examining authority
if the customers of a selling group member sell into a penalty stabilizing bid, the selling group member must pay back to the underwriter the what?
concession
the opening quote for issues listed on the NYSE is set by the?
DMM
change sin stock ownership by insiders must be reported to the SEC when?
within 2 business days of the change
in determinin whether a firm has met its best execution responsibilities, FINRA will review what four things?
character of the market for the security, size and type of transaction, number of primary markets checked and accessibility to markets and quotation sources
under net capital rules, the sale of a long securities difference dow what?
decreases net capital
an introducing firm that does not receive or hold customre securities has a minimum net capital requirement of what?
$5,000
a fifth character by a market maker’s identifier on a particular security indicates what?
that the market maker quotes in more than one trading location
notification of a sale under Regulation A in the form of an offering circular must be filed with the SEC how many calendar days before the initial offering?
20
under SEC rules, a seasoned issuer must have a public float value of at least what?
75 million
SEC rule 15c2-4 deals with?
escrow of customer checks in contingent offerings
Rule 506
private placements are limited to 35 non accredited investors, full disclosure is required, no general advertising is allowed, and an investment letter must be signed by each purchaser
one of your reps in your office as been fined $3,000 for continuing to violate firm procedures. under FINRA your firm is obligated to what?
notify FINRA within 10 business days
under FINRA rules, customers who are approved to trade options must receive a copy of the OCC options disclosure document when?
at or before account approval
what two things describe a restricted long margin account?
equity is below the initial requirement and the debit balance is great that the loan value
a member firm has a net capital requirement of $350,000. Under FINRA rules, it must maintain a fidelity bond of NOT less than what?
$700,000
under the Code of procedure, a prehearing conference must be held within how many days of receipt of the respondent’s answer to the complaint?
21
the regular way ex-dividend date for cash dividens is the what?
2nd business day preceding the record date
the rules governing tracsactions in unregistered securities between qualified institutional buyers are described in what rule?
144A
short positions in nasdaq securities must be reported to FINRA how often?
twice a month
a day trading risk disclosure statement must be given to customers of firms that what?
promote a day trading strategy
officers and directors of a publicly traded issuer are prohibited from doing what two things?
taking short swing profits on the issuer’s stock and shorting the issuer’s stock
under the US patriot Act, firms must make records relating to wire transfers of how much?
$3,000
the SEC defines a research report as a client communication that analyzes individual securities distributed to at least how many people?
15
Under SEC rules, the haircut on a thinly traded, non-nasdaq stock is what?
40%
when one party to a trade sends a paper confirmation but does not receive one (or a DK) in return, the confirming member must send a DK notice to the nonconfirming member when?
after 4 business days from the trade date
under Regulation T, the current market value of a margin security is calculated based on what?
the closing sale price on the preceding business day
SEC rule 15c3-2 requires B/Ds to what?
notify customers of free credit balances
in regulation A offering, the SEC will integrate the current offering with any securities offering of the issuer occuring within the prior how many months?
12
