Chapter 3

Question 1

Investment companies with self-created rankings, bond funds including volatility ratings, and security futures are required to:

Answer 1

be filed with FINRA 10 business days prior to first use

Question 2

An analyst is considered to be making a public appearance when:

Answer 2

making a recommendation for an equity security in a public or electronic forum, or on radio or TV.

Question 3

_____ is responsible for authorizations and disclosures on independent third party research.

Answer 3

The member firm that produces the research.

Question 4

Regarding CMO-related retail communication, CMOs may nor be:

Answer 4

compared to other investments

Question 5

Regarding CMO-related retail communication, CMOs must offer:

Answer 5

educational material

Question 6

Independent third party research

Answer 6

Research prepared by an independent third party and the member firm has no editorial control over content

Question 7

A speaking engagement with 15 or more persons or with one or more media representatives

Answer 7

Public Appearance

Question 8

Research Reports

Answer 8

Written or electronic communication about equities, including information for a client to make an investment decision

Question 9

Proprietary names are permitted for variable contracts as long as the policy is described as either:

Answer 9

variable life or variable annuity

Question 10

Third party research

Answer 10

Research prepared by an affiliate of the member firm where the member has editorial control over content