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STC Numbers > Crunch numbers > Flashcards

Crunch numbers Flashcards

1
Q

Typically, investment companies are allowed no more than ____ days from request to complete a redemption.

A

7 days

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2
Q

Mutual funds are required to provide a ___________ report to their shareholders.

A

semiannual report

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3
Q

When buying securities in a restricted margin account, clients must deposit ___% of the trade within ____ business days.

A

50%
within 3 business days

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4
Q

What exception allows an underwriting manager to immediately publish research on a company due to a significant event?

A

Hot News exception

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5
Q

When is a non-branch office inspected?

A

Periodically

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6
Q

When is settlement for a transaction that’s using a seller’s option settlement?

A

On a date that’s agreed on by both parties, but not earlier than two business days after the trade date.

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7
Q

If a client’s equity falls below 25%, the maintenance call must be met ____.

A

Promptly

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8
Q

If securities are in transit and are identified as such, the buy-in will be delayed for ______ calendar days.

A

seven calendar days.

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9
Q

For SEC purposes, if an insider purchases or sells his stock, what form is filed and when is it filed?

A

Form 4 must be filed with the SEC within two business days of the trade.

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10
Q

Within what period must any required adjustment be made to a firm’s fidelity bond?

A

Within 60 days of the anniversary of posting the bond

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11
Q

BDs are required to monitor the status of all fully paid and excess margin securities on a _______ basis.

A

daily basis

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12
Q

What is a Private Investment in Public Equity (PIPE)?

A

When a BD acts as a placement agent for restricted securities of an issuer whose securities are already publicly traded.

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13
Q

A net capital adjustment is required for short securities differences remaining unresolved after _______ business days.

A

seven business days

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14
Q

If a written complaint relates to general securities activities, for how long are the records required to be maintained?

A

Four years

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15
Q

To be considered a threshold security, excessive fails-to-deliver must occur for ____ consecutive settlement days.

A

5 consecutive settlement days

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16
Q

When must a BD buy in the securities if a selling client fails to deliver securities?

A

S+10

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17
Q

What days may telemarketers place calls to prospective clients

A

Any day of the year!

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18
Q

What type of transaction is being executed when a client purchases securities with payment made by a third party?

A

Delivery versus payment (DVP) or collect on delivery (COD)

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19
Q

What type of office must approve or reject a variable contract application, by when and by who?

A

OSJ, principal within 7 bdays

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20
Q

For how long must a prospectus be provided in the after-market for the IPO of a stock to be listed on an exchange?

A

25 days

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21
Q

For how long must a prospectus be provided in the after-market for a non-exchange IPO?

A

90 days

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22
Q

Under the TCPA (Telephone Customer Protection Act), an existing relationship exists if a client has engaged in transactions with a firm within ___ months.

A

18 months.

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23
Q

An RR discovers securities are lost/missing, when must she report this fact to the SIC and transfer agent?

A

within 3 days - 2 days to search for it and 1 day to report

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24
Q

A trial balance used to calculate net capital is prepared ______.

A

monthly

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25
Q

If an auditor for a member firm finds a deficiency, when must the BD notify the regulators?

A

A procedural deficiency is reported within 24 hours of discovery, and a corrective action plan is sent within 48 hours.

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26
Q

FOCUS Report Part I filed by when?
FOCUS Report Part II filed by when?
FOCUS Report Part IIA filed by when?

A

Carrying BD within 10 bdays of month end - NOT required for Introducing BD
Carrying BD within 17 bdays of qrter end
Introducing BD within 17 bdays of qrter end

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27
Q

A record of all customers’ securities positions, along with profits and losses, must be maintained for _____ years.

A

6 years

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28
Q

A satisfactory subordinated loan has a minimum maturity of ________.

A

1 year

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29
Q

What step is required if a fail-to-deliver position has been open for 13 consecutive settlement (business) days?

A

Mandatory close-out on the morning of the 14th bday

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30
Q

A QIU is a firm that has acted as _______ or __________ in at least _____ similar offerings within the last _____ years.

A

A QIU is a firm that has acted as manager or comanager in at least three similar offerings within the last three years.

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31
Q

What is considered regular and continuous quoting as defined by the Piggyback Exception?

A

Over the last 30 days, no more than four business days elapsed without a quote. (regular and continuous quoting)

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32
Q

If a non-transferable asset is sold, the carrying BD has _____ business days to pay the client

A

5 business days

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33
Q

According to the HSR Act, an M&A deal may not be completed until ____ days after notification.

A

30 days

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34
Q

Upon making changes to or cancellation of a fidelity bond, the BD must notify FINRA ________.

A

promptly

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35
Q

Annual Report of Financial Condition is filed with SEC no later than _______ from the date of the financial statement.

A

60 days

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36
Q

When must the board of directors of the company, subject to a tender offer, advise its shareholders regarding the offer?

A

Within 10 days from the date the tender is made

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37
Q

Once notified by a Code of Procedure hearing panel, the hearing must be held within ____ days.

A

28 days

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38
Q

What is the SIC?

A

Securities Information Center; created to identify and intercept stolen, forged or missing securities

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39
Q

If a transaction is reported at a clearly erroneous price, when will review and action be taken by FINRA?

A

within 30 minutes

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40
Q

How often must BDs publish reports summarizing their order routing practices?

A

Quarterly

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41
Q

What time limit exists for issuers/affiliates of actively-traded securities that are repurchasing their own security?

A

They may not purchase their security within the last 10 minutes of the trading day

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42
Q

The SEC may suspend trading for up to ____ business days for an individual issue.

A

10 business days

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43
Q

For their customers with free credit balances, BDs must provide notification at least ___________.

A

quarterly w/ statements
monthly if monthly statements

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44
Q

f a BD’s equity is below ____% or exceeds ___% of its debt-equity total, a violation will occur if not corrected within ____ days.

A

below 30%
exceeds 70%
90 days

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45
Q

When must a BD notify the authorities if securities are discovered missing due to a quarterly securities count?

A

Within 10 business days

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46
Q

The SEC may suspend trading on an exchange for up to ____ days.

A

90 days

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47
Q

To begin using a form of electronic storage (other than CD-ROM), the BD’s DEA requires a ___-days advance notice.

A

90 days

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48
Q

Letters of Intent may be back-dated for _____ days.

A

90 days.

49
Q

If a client requests a copy of the predispute arbitration agreement, when must it be provided?

A

Within 10 business days of the request
customer must acknowledge receipt on a separate document

50
Q

Within ___ days of signing the client must receive a copy of the predispute arbitration agreement?

A

30 days
customer must acknowledge receipt on separate document

51
Q

When must insiders report their transactions?

A

Within 2 business days of the trade via form 4

52
Q

When do CAT reports need to be submitted to FINRA?

A

On the trading day after the data is recorded

53
Q

True or False: For a seasoned issuer, a shelf registration becomes effective immediately.

A

False. A seasoned issuer may use a shelf registration, but it will be subject to SEC staff review.

54
Q

What uses the ADF?

A

ECNs use it to display orders rather than the Nasdaq Market Center Execution System

55
Q

Though acting in good faith, a customer sells securities, but does not deliver. When must the BD close out the trade?

A

35 days
For restricted stock sold under 144 or
a convertible security that has tendered for conversion, but the underlying security cannot be physically delivered by the settlement date

56
Q

Letters of Intent are valid for ____ months.

A

13 months

57
Q

If a security is recovered after having been reported as lost/missing, when must the SIC be notified?

A

Within one business day of recovery

58
Q

BDs are not required to take action if a margin deficiency is less than $______.

A

$1,000

59
Q

Who publishes a list of all threshold securities?

A

SRO (FINRA)

60
Q

What is the OFAC List?

A

The Office of Foreign Assets Control of the U.S. Treasury List; it identifies suspected terrorists and criminals

61
Q

Under portfolio margin rules, margin requests must be satisfied within ______ business days of request.

A

3 business days

62
Q

By what date must a _____firm send to the _____firm the list of all reports that it can generate?

A

clearing firm send to the introducing firm
July 1

63
Q

For underwriting purposes, a BD is allowed up to _______ temporary subordinated loans over ____ months.

A

For underwriting purposes, a BD is allowed up to three temporary subordinated loans over 12 months.

64
Q

Complete this statement: An ad referring to a 6-year-old fund’s ranking based on total return must refer to …

A

the total return for the one- and five-year periods by the same ranking entity.

65
Q

What does UTP mean?

A

Unlisted Trading Privileges, which allows an exchange to trade securities not listed on that exchange.

66
Q

If an associate requests a copy of his U5, how long does the member firm have to respond?

A

Response must be made within 2 business days of request.

67
Q

Generally, how often will a BD calculate the required deposit in its Special Reserve Bank Account?

A

Weekly
Monthly if 8:1 ratio

68
Q

To cover a short sale, investors may not use a new stock issue if the short sale occurred within ___ days of the offer.

A

within 5 days

69
Q

If a customer changes his address, where and when must notification of the change be sent?

A

the customer’s old address within 30 days of the change.

70
Q

According to the Equity IPO Rule, firms must update the eligibility of purchasers ___________ .

A

annually (called precondition of sale)

71
Q

How many business days prior to presentation must evidence of incumbency be dated?

A

60 days

72
Q

When must clients of a BD receive the firm’s most recent balance sheet?

A

on request

73
Q

When is a BD required to report operational difficulties?

A

within 24 hrs

74
Q

Notice of a buy-in may not be delivered to the seller sooner than ____ business day after settlement.

A

one business day

75
Q

CAT reviews all trading activity in the US for ?

A

equity and option markets

76
Q

An issuer with $700 million outstanding voting shares OR issued 1 billion of non-convertible debt within the last
3 yrs would be placed in what category?

A

WKSI
no bankruptcy
12 months reporting company

77
Q

When is a firm’s business continuity plan made available to FINRA?

A

Promptly on request

78
Q

Short securities differences will have a 100% haircut (reduction) after how many days have elapsed?

A

28 days

79
Q

Under the Code of Procedure, a sanction becomes effective ____ days after the firm has received final notice.

A

30 days

80
Q

Regulation A requires an issuer to file ____ years of financial statements that may be __________.

A

2 years
unaudited

81
Q

How many days advance notice is provided to clients if a BD changes loan terms (e.g., interest rate)?

A

30 days

82
Q

Rule 147 offerings may not be sold to an out-of-state investor for ____ months following the last sale of a new issue.

A

6 months

83
Q

Illustrations showing returns for variable products must be for a minimum time of ____ year.

A

one year

84
Q

How frequently do BDs conduct physical counts of securities in their possession?

A

Quarterly

85
Q

FINRA must be notified ____ days prior to the effective date of a satisfactory subordinated loan.
The SEC must be notified ____ days prior to the effective date of a satisfactory subordinated loan.

A

30 days prior
10 days prior

86
Q

What happens if a variable contract is sold to a client who then cancels the contract within seven business days?

A

The selling BD must return its portion of the sales charge.

87
Q

True or False: Form 211 must be filed by all market makers in Nasdaq securities.

A

False. Form 211 is required for those initiating quotes in non-exchange (OTC) securities

88
Q

The ______ is the office providing final approval of retail communication.

A

OSJ

89
Q

written complaints and any correspondence connected to the complaint must be reviewed by a ______ and filed at _____ office

A

principal and an OSJ

90
Q

In order to engage in passive market making, the managing underwriter must send notice to FINRA by no later than ___ prior to the start of the restricted period.

A

one day prior to the start

91
Q

Reg S requires any security offered overseas be sold to _____ purchasers.

A

Non-US purchasers

92
Q

Tendering of securities is permitted if an individual is:

A

Long a convertible security that has NOT been tendered for conversion
Long the stock or long equivalent security
rights, warrants, convertibles
Don’t confuse with marking an order LONG!!

93
Q

According to industry rules, the maximum sales charge on a separate account variable annuity is:

A

Not specified, but must be reasonable

94
Q

What is the exception for a customer’s name being on the order ticket?

A

Order is entered by an investment adviser or EE of an investment advisory service firm.

95
Q

A customer is considered a pattern day trader if

A

four or more DAY TRADES within any five-business-day period (can be less than 5 bdays)

96
Q

If an associated person is subject to statutory disqualification, his employer is required to update Form U4

A

within 10 days

97
Q

A research analyst may not participate in investment banking pitches because:

A

There is a conflict of interest that could lead to biased communications

98
Q

If a registered representative is terminated by a firm and then hired by another firm, the new firm has how many days to review the individual’s Form U5?

A

60 days

99
Q

Under Regulation SHO, if a broker-dealer has a fail-to-deliver position at a clearing firm in a threshold security that was sold under a Rule 144 exemption, it’s required to close out the position in:

A

35 consecutive settlement days

Don’t confuse with a customer bringing in Rule 144 securities to his broker-dealer to execute a long sale. In this case, if the restrictions have not been removed in 35 calendar days, the broker-dealer will be required to close out the position.

100
Q

When do equity trades in a COD account typically settle?

A

T+1

101
Q

Broker-dealers that transfer or transmit funds (wire transfers) must collect information about a transfer of ____ or more

A

$3,000
confirm names and identity of transmitter and recipient

102
Q

Minimum net capital under the ALTERNATIVE computation is $_____.

A

$250,000

103
Q

What does Nasdaq Market Velocity measure?

A

order activity: quotes, orders, updates, and cancellations.

104
Q

Forward-looking information or statements may be released ______, including the period during the offering of securities.

A

at any time

105
Q

The LOI is typically signed prior to the _______ being filed and is ______. The underwriting agreement is ______ and is signed just before the ________.

A

registration statement and is non-binding

binding and signed just before the effective date

106
Q

A member firm may, but is not required to, accept ___ orders and ____ orders for NMS stocks.

A

stop orders and stop limit orders

107
Q

What pricing criteria are used when marking-to-the market?

A

comparison of the contract price to the market price

108
Q

Reg. A issuers may use what prior to the filing of an offering statement with the SEC?

A

general solicitation and advertising

109
Q

History of residency must be reported on Form U4. Employment history must be documented for. Felony convictions are reported ____.

A

A minimum five-year
a minimum of 10 years
Indefinitely

110
Q

If a temporary hold has been placed on a customer’s account, the firm must provide notice to the account owner and the trusted contact person within

A

two business days

111
Q

A notice sent no later than July 1 each year concerning carrying agreement reports is required to be sent to:

A

Both the chief executive officer and the chief compliance officer

112
Q

Reports of a sales on Form D of unregistered securities under Reg D must be made to the SEC within how many days of the first sale?

A

15 days

113
Q

BD files a report within _____ of completing an internal investigation for security laws violation.

A

5 business days

114
Q

FINRA typically reviews new member (firm) applications within _________. If rejected, the applicant may file a written request for review of the membership decision with FINRA’s National Adjudicatory Council within _______.

A

six months (180 days)
25 days

115
Q

Reg SHO: A broker-dealer that sells an equity security short must deliver the security by _____ or
A BD must purchase or borrow the security by no later than ____ (a long sale allows two additional days, or T+4).

A

T+1
T + 2

116
Q

On Nasdaq, MOC orders CANNOT be entered, cancelled, or changed after _____. However, LOC orders may be entered until _____.

A

3:55 p.m
3:58 p.m

NYSE has the times you already know!

117
Q

Trial balances that are used to calculate net capital are created _____ by carrying firms.

A

monthly

118
Q

A short security difference that’s discovered as the result of a box count is subject to a net capital adjustment in ______.

A

seven business days

STC Numbers (7 decks)

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