Chapter 20

Question 1

For arbitration claims of more than $100,000, the NFA will appoint ___ arbitrator(s).

Answer 1

three

Question 2

In the case of an erroneous transaction report, the _____ execution price is binding on the client.

Answer 2

actual

Question 3

The hearing panel may not impose a _____ due to a rules violation.

Answer 3

prison sentence

Question 4

When arbitration involves public customers, a _____ of arbitrators must be from outside the securities industry

Answer 4

majority

Question 5

Form U4 contains details about settlements exceeding $_____ related to complaints, arbitration, or civil litigation.

Answer 5

$15,000

Question 6

_____ arbitration may be used if a dispute does not exceed $50,000.

Answer 6

Simplified

Question 7

If a quantity error occurs when filing a trade, the client is obligated to accept the _____ quantity.

Answer 7

desired

Question 8

Clearly Erroneous Trade

Answer 8

A trade whose terms contain an obvious error, such as price, number of shares, or the security’s identification.

Question 9

FINRA’s database for member registrations

Answer 9

Central Registration Depository (CRD)