1

Question 1

a cross guarantee

Answer 1

when a customer’s margin account is guaranteed by another customer of the B/D carrying the account

Question 2

Form 144 must be filed with the SEC when?

Answer 2

concurrently with the sale or earlier

Question 3

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?

Answer 3

more than once during the day

Question 4

focus IIA reprots must be filed how oftern?

Answer 4

quarterly - within 17 business days of the quarter end

Question 5

Nasdaq allows market participante to execute how?

Answer 5

against displayed size and reserve size

Question 6

the function of the book that allows part of a market maker’s interest to remain undisplayed is what?

Answer 6

reserve size

Question 7

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?

Answer 7

$4,000 - they can never borrow more than they loaned the customer

Question 8

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?

Answer 8

July 31 of each year

Question 9

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?

Answer 9

member’s designated examining authority

Question 10

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?

Answer 10

concession

Question 11

the opening quote for issues listed on the NYSE is set by the?

Answer 11

DMM

Question 12

change sin stock ownership by insiders must be reported to the SEC when?

Answer 12

within 2 business days of the change

Question 13

in determinin whether a firm has met its best execution responsibilities, FINRA will review what four things?

Answer 13

character of the market for the security, size and type of transaction, number of primary markets checked and accessibility to markets and quotation sources

Question 14

under net capital rules, the sale of a long securities difference dow what?

Answer 14

decreases net capital

Question 15

an introducing firm that does not receive or hold customre securities has a minimum net capital requirement of what?

Answer 15

$5,000

Question 16

a fifth character by a market maker’s identifier on a particular security indicates what?

Answer 16

that the market maker quotes in more than one trading location

Question 17

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?

Answer 17

20

Question 18

under SEC rules, a seasoned issuer must have a public float value of at least what?

Answer 18

75 million

Question 19

SEC rule 15c2-4 deals with?

Answer 19

escrow of customer checks in contingent offerings

Question 20

Rule 506

Answer 20

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

Question 21

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?

Answer 21

notify FINRA within 10 business days

Question 22

under FINRA rules, customers who are approved to trade options must receive a copy of the OCC options disclosure document when?

Answer 22

at or before account approval

Question 23

what two things describe a restricted long margin account?

Answer 23

equity is below the initial requirement and the debit balance is great that the loan value

Question 24

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?

Answer 24

$700,000

Question 25

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?

Answer 25

21

Question 26

the regular way ex-dividend date for cash dividens is the what?

Answer 26

2nd business day preceding the record date

Question 27

the rules governing tracsactions in unregistered securities between qualified institutional buyers are described in what rule?

Answer 27

144A

Question 28

short positions in nasdaq securities must be reported to FINRA how often?

Answer 28

twice a month

Question 29

a day trading risk disclosure statement must be given to customers of firms that what?

Answer 29

promote a day trading strategy

Question 30

officers and directors of a publicly traded issuer are prohibited from doing what two things?

Answer 30

taking short swing profits on the issuer’s stock and shorting the issuer’s stock

Question 31

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

Answer 31

$3,000

Question 32

the SEC defines a research report as a client communication that analyzes individual securities distributed to at least how many people?

Answer 32

15

Question 33

Under SEC rules, the haircut on a thinly traded, non-nasdaq stock is what?

Answer 33

40%

Question 34

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?

Answer 34

after 4 business days from the trade date

Question 35

under Regulation T, the current market value of a margin security is calculated based on what?

Answer 35

the closing sale price on the preceding business day

Question 36

SEC rule 15c3-2 requires B/Ds to what?

Answer 36

notify customers of free credit balances

Question 37

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?

Answer 37

12